Introduction:Recently, Chagee faced a wave of online boycotts in Vietnam and Malaysia after a nine-dash line map background appeared in its app, leading to damage to the brand’s image locally and challenges in store operations. This article delves into the development of the incident, differences in reactions across regions, and the actual impact on both physical stores and delivery services, helping readers understand the importance of localized communication for multinational brands.

Recently, Chagee sparked strong dissatisfaction among netizens in both Vietnam and Malaysia due to an image in its mobile app featuring a map with the nine-dash line as the background, which then escalated into large-scale boycotts. This controversy, stemming from China's map labeling regulations, not only damaged the brand’s image locally but also directly affected the normal operation of its stores.

The incident began when Chagee, in compliance with current Chinese regulations, used a map background with the nine-dash line marking in its app. This move quickly caused an uproar in Vietnamese social media, with many netizens viewing the image as involving territorial disputes and subsequently launching a boycott. In Ho Chi Minh City, the brand signage of its first outlet was completely removed, and the storefront was covered with dark green construction boards. According to personnel from nearby businesses, the store’s signboard was even taken down during the initial stages of the boycott.

The Vietnamese government also responded to the incident. On March 20, authorities in Ho Chi Minh City confirmed at a press conference that a formal investigation into the brand had been initiated. Additionally, Vietnam’s state-run newspaper Lao Động reported that besides the controversial map image, an image circulating online purported to be Chagee’s brand emblem—which allegedly included a design resembling the mausoleum of Vietnam’s late President Hồ Chí Minh and was paired with text content deemed questionable—also became a subject of the investigation.

Although Chagee promptly removed the problematic app image after the controversy escalated, the app remained available for download in other Southeast Asian regions, leading some Malaysian users to also come across the same controversial background image while using it, sparking local dissatisfaction and subsequent boycott movements.

Faced with intense online criticism, although the brand quickly removed the background image, this action failed to effectively calm public sentiment. However, the performance of physical store operations showed a different picture. According to observations by local media, at Chagee outlets in Kuala Lumpur, although the number of in-store customers decreased, the volume of delivery orders remained stable, indicating that consumer behavior was not entirely influenced by online public opinion.

This situation contrasts with the performance of American chain brands such as Starbucks and McDonald’s, which faced boycotts in Malaysia due to the Israel-Palestine conflict. At that time, Starbucks suffered a large-scale boycott for similar reasons, with statistics showing that at least 50 outlets were forced to close, significantly impacting the brand’s market presence locally. In comparison, although Chagee is currently facing strong online criticism in Malaysia, its physical store operations have not yet seen significant shrinkage.

Overall, Chagee’s use of a specific map background in compliance with Chinese legal regulations triggered a chain reaction in Vietnam and Malaysia, not only resulting in the app being removed in Vietnam, interruptions in store renovations, but also challenging the brand’s image. However, in terms of physical operations—especially in Malaysia—the stable volume of delivery orders shows that strong online public opinion does not necessarily fully translate into direct impacts on in-person consumption.

This incident also serves as a reminder to multinational brands that when promoting in local markets, they must handle geopolitically sensitive information more cautiously to avoid unnecessary controversies and losses due to improper use of maps or other cultural symbols.

The above content is compiled by CoffeeHunters, a coffee news website.