Disruptive Or Healthy Competition? Malaysians Discuss Zus And Mixue At Ramadan Bazaars

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For most Malaysians, visiting Ramadan bazaars is an annual tradition as these markets offer an array of food and drinks (at arguably affordable prices) for those who are preparing to break their fast at the end of the day.

Even non-Muslims enjoy these bazaars that pop up at almost every neighbourhood in the country, seeking delicacies that often only appear during the holy month.

This year however, new contenders to the Ramadan bazaar scene have become the talk of the town — local coffee chain Zus Coffee and China’s ice-cream and milk tea brand Mixue.

Malaysians excited to see Zus and Mixue at their local bazaars

Many were excited to see the homegrown coffee brand and Chinese dessert chain open for business in their modest Ramadan bazaars.

The highlight of the Zus Coffee and Mixue’s participation however, are the prices they have set for their drinks.

Bazaar-goers were happy to find that Zus Coffee were selling their Chocolate Coffee and White Coffee for only RM3.90 per cup, while Mixue sold their beverages at RM4 per cup.

Granted, these are not freshly made by a barista like at their physical outlets, but Zus Coffee uses their own products under the “Ngupi” line — the brand’s very own instant premixed 3-in-1 coffee packets which you can purchase on their website.

Mixue on the other hand sells their pre-packaged drinks as how you’ll find them at their stores.

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Is their participation in Ramadan bazaars healthy competition or disruptive to local vendors?

The appearance of Zus and Mixue at Ramadan bazaars around Malaysia sparked conversations about how it may affect small business owners.

Many were actually happy to see the two brands join the Ramadan market, saying that they provide good and healthy competition while providing “checks and balances” to the price of goods there.

A number of people have complained that the price of air balang (drinks sold from large containers) are too pricey. They revealed that a cup ranges from RM6 to RM10.

It’s important to note that vendors at Ramadan bazaars also offer beverages other than coffee and milk tea so in terms of competition, only the ones selling similar drinks would be competing with the two well-established brands. Vendors selling drinks like teh tarik or sirap bandung would only have each other to compete with.

The government previously wanted to review rules governing foreign F&B businesses

In January this year, the government announce that it would review regulations that govern non-Malaysian food and beverage (F&B) brands.

This was due to growing concerns that the aggressive expansion of international food chains would squeeze out local businesses.

At the time, Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh said the matter was raised in Parliament over questions concerning the rapid growth of brands such as Mixue, Chagee, and Auntea Jenny, and whether their presence threatens the survival of local small and medium-sized enterprises (SME).

READ MORE: Government Reviewing Rules On Foreign F&B Chains Amid Fears For Local SMEs

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Disruptive Or Healthy Competition? Malaysians Discuss Zus And Mixue At Ramadan Bazaars
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