Original title: Crazy Coffee: a new arena for Starbucks
Source: Sanlian Life Weekly
Author Yang Lu
The results of Starbucks are probably not seen in the near future, but the 5 months old coffee has opened 525 stores, faster than many brands that have worked for many years in the coffee market. Capital is coming in like a storm. The new retail business is the coffee industry.
The lucky coffee shop, numbered No.0001, is on the first floor of the Shenzhou excellent vehicle headquarters. It is an open area in Beijing's northern third ring. The office space of the Shenzhou excellent car headquarters is rebuilt from the wholesale market, which is the typical case of the reutilization of property in the urban areas. In the cafe on the right hand side of the lobby, it was a good business. It was only 10 in the morning. Only one vacancy was left. Many people were probably on a business trip. They held a meeting at the long table in the cafe with a box. Every now and then, people walk out of the office area and take away.
As one of the earliest business, with the experimental nature of one of the three stores, this shop is used to observe the consumption habits of ordinary white-collar consumption, purchase rate, price sensitivity, and so on. At that time even APP did not, the Shenzhou excellent car employees through the internal purchase links and WeChat orders, there is no special internal preferences, but according to the present Buy five bonus five promotional activities, buy 24 yuan a coffee coupon, a cup of coffee 12 yuan. If Rui Xing coffee is the price of Starbucks coffee, then its actual price is only a little higher than that of wheat coffee and chain convenience store coffee. We don't have to start with the support of COO money. From the point of view, a cup of coffee with 12 dollars a cup is the first choice for the ordinary employees of the Shenzhou excellent car group.
After the auspicious luck, the supermarket in the next building opened a Costa business. Although the focus of the topic is between Rui Xing and Starbucks, it can exceed the Costa level if the data of 525 stores are opened at the end of May according to Rui Xing's announcement. Costa has long been considered to be Starbucks's main rival in China, and in many of the city's commercial areas, it is the existence of a Starbucks store. According to data published in the media last year, it had 420 stores in China by 2017.
Instead of Costa's seat, Rui Ying's eyes only stared at Starbucks. In May 15th, Mr. Rui sent a public letter to Starbucks, saying that the suppliers who had met the Starbucks and the property signing contract and reunion were faced with a team choice, calling on Starbucks to give the industry a fair competition. This war is more attractive than inviting Chang Chen and Tang Wei as spokesmen, and the news is rapidly becoming a hot topic of the week.
Tang Wei endorsed Rui's coffee
Many people familiar with the Internet see this as a marketing tool, especially as CMO Yang Fei writes in his newly published flow Pool.
Starbucks in China's coffee and even the industry is a mountain, every once in a while
The purchase method is also different, must download an app first, even if drinks in the store, also is in the APP up and down single. This looks like a different trading method, but in Yang Fei's view, this is the competition of different latitudes. The model represented by Starbucks is
In the new retail chain, many people who are familiar with internet ventures are associated with coffee. Coffea, founded in 2014, was originally bought from a chain of Starbucks, such as Starbucks, and would not be able to drink coffee out of the office at a fee of 2 yuan each time. By this kind of thinking, even coffee has accumulated hundreds of thousands of Starbucks and other coffee chain brand customer data, in 2015 peeled off the purchase business and made its own brand Coffee Box. The concept of new retail has not been refined. Even coffee has used user data to sell coffee.
On March 12 this year, Lian Coffee announced that it had completed 158 million yuan B round financing, led by QiMing Venture Partners, followed by Banyan Capital, in which QiMing Venture Partners partner Robert
Inside the coffee industry, it's not a pool of still water. Starbucks spent 8 billion 800 million yuan last year to return the joint venture's East China 1300 stores, and Costa also spent 310 million yuan to buy the 49% remaining shares of the Yueda Cafe (Shanghai) restaurant management company. The company is a joint venture between Costa and Jiangsu Yueda group. After the acquisition, Costa will be able to own the South market of China wholly-owned. Even has been seen as small and artistic coffee has capital trends, seesaw completed 45 million yuan in June last year A round of financing, greybox completed the end of last year's 100 million yuan A round of financing.
Looking back at Ruixue's emergence, founder Qian Zhiya spoke publicly about the reasons for starting a business. He was a heavy user of coffee. He felt that the coffee industry could use the Internet method to do it once, and it was not a luxury upgrade version.
What's going on in the coffee industry?
Chinese people's knowledge of coffee shops, to a large extent, comes from Starbucks. Starbucks has opened more than 3000 stores in more than 130 cities since January 1999, when it opened its first store in the mainland of China in Beijing. Starbucks, at 76x, remains an absolute leader, according to the company's coffee restaurant penetration data released at the end of 2017. The success of Starbucks, and one of the important things about Starbucks, is that it has studied it.
In order to satisfy the inner feelings of consumers, Starbucks has developed a whole set of
Diagram / pixabay
This is summed up as
Many of the founding members of the coffee company come from the mobile Internet industry. Zhang Hongji said, "they are a typical mobile Internet Co, when they see all the users' habit of building mobile payments, and mobile payments become social infrastructure, and the future consumption of coffee, a low guest, high frequency daily life scenario, will change from the traditional place to the core. The core. Another reason to do it with confidence is that the business partner of the mobile Internet gene flight housekeeper team, even the professional background of the coffee CEO Zhang Xiaogao, says Zhang Xiaogao is the supply chain, the top two of the chain store logo supplier. All the signs of Starbucks and Costa chain stores in China are made by him, so he knows that the coffee industry is growing every year.
From the popularity of mobile payment and the growth rate of the coffee industry, even coffee was born in 2014. At the beginning, what they did was coffee purchasing and takeout. At that time, the take-away had not yet been scaled up, O2O had just started, but even the coffee business grew rapidly, indicating that the market demand for coffee takeout is real. Zhang Hongji said that when Starbucks first entered China, it was the most Western-style, minimal-budget environment in the city. Everyone likes to sit in and enjoy the feeling. After so many years, the home is now very well decorated and the office is very comfortable. Even the gardens and avenues of the city are very beautiful. The demand for the third space is diluted.
"Last year, we released a cocktail product that is particularly appropriate to illustrate this shift in Chinese cities. Traditionally we think of drinking cocktails to go to bars and enjoy the atmosphere and alcohol there, but the first day we released Mojito took away." More than 10,000 cups, indicating that everyone wants to be relaxed and comfortable does not necessarily have to go to the bar to achieve. "Zhang Hongji said.
Figure / pixabay
The purchasing and take-out of coffee allowed Lian’s coffee to accumulate data on customer distribution, consumption levels, and what kind of coffee he likes. Based on this information, they realized the original vision of starting a business. The scene of coffee consumption went from people to coffee shops to people’s lives. Where is the coffee? Even Coffee established its own coffee brand, Coffee Box, in 2015. At that time, the e-commerce industry did not call the concept of new retail. However, even the coffee project has been based on user needs and data-driven. They use the accumulated data to identify areas where customers are concentrated and open coffee kitchens. Users can drink coffee within half an hour by placing orders under the public number.
This business model seems to be working, Zhang Hongji said, because the coffee takeaway does not require offline scenes, even the coffee shop opened in an inconspicuous place. Their strategy is to profit from single store and then replicate to the small profits of Beishang Guangshen. Now the scale of opening a store is not large, but each store has realized profits. This year will speed up and plans to open 500 stores in the north of Guangzhou.
Battlefield, stock market for coffee shops
Even coffee in the popularity phase of mobile payment has verified the coffee break out of the "third space" there is also demand, not to mention the current mobile payment and takeout has become the mainstream of life in the city, so, Ruixing coffee proposed "Unlimited scenes "The concept is that as long as you place orders on your mobile phone, you can drink coffee and you don't understand the obstacles for consumers." Compared with the take-out coffee, Ruixing Coffee opened a wired store, which was a form of retail industry trial after the new retail sales last year. It opened up online and offline, and improved the efficiency of shopping around the store. It takes half an hour for takeaways to arrive at your doorstep. However, if the store is in the company's lobby, it is more convenient than takeaway. Yang Fei even believes that the take-away is only to supplement the amount of coverage in the previous period. It quickly confirmed the model of Ruixing coffee, and it was still the offline store.
The team of Ruixing Coffee envisions passing this "mobile cafe", which is "where is the person, where is the coffee" & rdquo; to increase the efficiency of coffee popularization. According to Yang Fei, according to the statistics of the International Coffee Organization, the per capita coffee consumption in China is only 5 to 6 cups per year, even if Beishangguang has only 20 cups per year. Not to mention that compared with 300 US cups per capita in Europe and the United States, Japan, which is similar to our eating habits, consumes 200 cups per person per year, and South Korea also has 140 cups. The gap between them is quite large.
Geographical restrictions are indeed a cause of coffee consumption. Wu Hao, a project manager at Roland Berger Consulting, conducted a survey on coffee consumption behavior in China. He said that most consumers choose to choose a coffee shop. He will not run to the coffee shop and decide to go to this place, but went to this place and saw a coffee shop picking up for a drink. The density of coffee shops affects the frequency of consumers' visits to stores. This type of behavior model has the greatest contribution to the popularity of Chinese coffee shop consumption, and it is Starbucks, which has an absolute advantage in penetration. As of last year, China has become Starbucks' second largest market outside the United States, but it still does not cover the lives of most Chinese people.
Figure / pixabay
The coffee shop consumer groups enlightened by Starbucks constitute a huge stock market, waiting for enlightened groups to form an imagination for the coffee industry. Even Coffee and Ruixing Coffee are currently on the stock market, and even the business of coffee is widening and deepening to the north. Zhang Hongji said that after the completion of the 500 stores planned this year, it can cover five rings in Beijing. The five-month old Ruixing Coffee has expanded into 13 cities with expendable power such as Kita-Shang Guangshenhang, among which Beijing is the largest, accounting for one-fifth of the number of stores opened.
To achieve this density, "where are people, where is coffee?" is far from enough. At present, it is no better than Starbucks to increase its popularity. However, this new type of coffee also competes with Starbucks to some extent. When Starbucks entered a new city, its stores opened in shopping malls. The proportion of shopping mall stores was more than half of that at Starbucks, and they gradually fell into the mature markets until they reached office buildings, communities, and other daily scenes. The number of stores exceeded that of Shanghai in New York, and office buildings were also It accounts for 28% of the city. Newly-launched coffee and Ruixing coffee have entered the workplace from this high-frequency consumer scene that has not been fully occupied by Starbucks.
Even hundreds of thousands of coffee original users come from Starbucks consumers. Coffee kitchens are located in these densely populated areas. Fortunately, there are no data guidelines at the moment, but Ruixing Coffee currently has most of its stores open in the office area. Yang Fei said that this shop mainly meets the fast-paced life of white-collar workers, and it is small in size. It sells many cups a day and is highly efficient. From the perspective of the Internet, it is a person's entrance and exit, and the traffic both online and offline is large.
The opportunity for new coffee also comes from consumption upgrades in the coffee field. Some people are not satisfied with the chain of coffee and turn to fine coffee. They plan to open 100 stores of fine coffee. Founder Wu Xiaomei, the founder of seesaw, said that this consumer group is people with individuality and ideas, such as artists. Therefore, her ideal location is the creative park of the city's settlement property renovation, because it is the atmosphere that the target customers like. There are too few places like this. She chooses international commercial real estate, but each family's design style is different.
Figure / pixabay
Outside the public areas, there is a silent upgrade from instant coffee to ready-made coffee and ready-to-drink coffee. Before Starbucks, China's coffee market was the world of instant coffee. It was cheap and easy to make. It was suitable for white-collar workers or students. According to coffee reports released by Mintel last year, instant coffee still accounts for 60% of China's coffee market. Share.
With the increasing consumption power of Chinese people and concerns about sugar, additives, and trans-fatty acids, the share of instant coffee is being eroded by freshly ground coffee and ready-to-drink coffee. Compared with the data of the previous year, the number of consumers who drink instant coffee every day is gradually decreasing. From the daily consumption of food channels or freshly ground coffee, even the sales of coffee machines and lugs have increased significantly. These coffee-drinking The scene also applies to new retail coffee, which is easy to access, quality is more stable than its own, and it is not necessary to buy a coffee machine.
Sell coffee using the Internet
If you want to drink Ruixing coffee, you must first download an APP. For the current situation of oversupply in the market, it's a bit "heavy". From the consumer's point of view, this is equivalent to the mobile phone downloading a stored-value membership card specifically for drinking Ruixing coffee plus a positioning platform for placing orders. For Ruixing coffee, it is a new retail terminal. Ruixing coffee has to use the Internet to redo the coffee industry. Yang Fei explained that the biggest reform is full data.
“In the traditional coffee model, many business judgments and cost control can only rely on social experience and third-party research. But the Internet is full of data. My users started from the first consumption, and all processes are completed online. The front-end consumer behavior is not an ambiguous conclusion but a collection of each real user data. There are now more than 100 labels for user portraits. These efficient summaries allow us to analyze the needs of users in depth. The back end links the entire supply chain and warehouse logistics. This system makes management very easy, how the local distribution rules, increase stores or reduce stores. Whether this store needs to increase the coffee machine, how the inventory of cups, cup sets, sugar, etc., what time to deploy, are very clear and reduce the cost of communication. "Yang Fei said.
All data operations must be implemented on the APP. Another important function is fissile marketing. The rule is that a new customer enters a mobile phone number to get a 24 yuan experience coupon. As long as he spends, the recommender can also get a 24 yuan experience coupon. Yang Fei himself is an Internet marketing expert and has received 35 million visitors in a year and a half. At the launch of Ruixing Coffee, in addition to the UCAR headquarters in Beijing, he also opened a functional experiment shop in Wangjing soho and Galaxy soho.
Wangjing soho has a good location and a large number of people. The main test is based on APP's fissile marketing to see how much fission, new speed, and how long it takes to reach a single store's maximum capacity. The position of Galaxy soho is partial and no one flows. The main test is the effect of WeChat's position-based advertising and advertising, and the speed of fissile recovery after ads have been acquired. He came up with the operation steps of the new store's growth: Inform the surrounding people through the designated advertising, and use the first order to get the first batch of download users for free, and use fission to attract new stock to find the increment.
During the five-month period of polishing products and trial operation, according to the data released by Ruixing, cumulative orders were approximately 3 million, sales of coffee were approximately 5 million, and service users exceeded 1.3 million. Although it is now a lot of controversy on the Internet, people who can do market are very clear about how difficult it is to establish brands and pull new ones in today's environment. The case of Ruixing Coffee in these two cases has been widely spread. Yang Fei said: "Coffee education is not as difficult as it sounds, and the pain is not solved. First, coffee sells expensive, and the second is inconvenience, resulting in many users without high-frequency consumption. If these two aspects are resolved, why refuse? ”
Figure / pixabay
In addition to solving the pain points, Yang Fei said that marketing tricks and spending more money, the core of success lies in good products. Now is not the time to hold on to consumers by telling stories. The coffee beans used by Ruixing are Arabica, and the coffee machines are the top Swiss automatic coffee machines Shelley and Franka. The winners of the three world barista contests are not platforms, but they come to work in the company every month. This coffee is also priced 6 to 8 dollars cheaper than Starbucks.
The cost-effective products, preferential prices and new brands are heavily subsidized for the purpose of winning customers. It is not new for consumers who have been involved in rounds of Internet entrepreneurial baptism such as group buying wars, drops of war, and shared bicycle wars. The Internet has just experienced a shortage of funds for sharing bicycles, and it naturally comes to mind when the subsidies for Ruixing Coffee can continue. Yang Fei said that the start-up capital announced now is 1 billion yuan, and the current expenditure may exceed this figure. The current funds are still abundant. There is no sure answer to the effect of using subsidy to cultivate consumption habits.
Wu Hao said that the premise that a large number of users had been subsidized through the subsidy was the premise that before the advent of drip, the difficulty of taxi has affected people's lives. If you just need a taxi, drinking coffee is not just a necessity. Once the subsidies are over, how many people can change their lifestyles and turn coffee into a daily drink? Yang Fei is full of confidence. He said that Taiwanese people did not drink coffee before, but now they consume more than 200 cups of coffee each year, and Taiwan’s largest coffee chain is a local brand, not Starbucks.
Due to Ruixing Coffee's rejuvenation, many people expressed optimism about the Chinese coffee market and used many data from other countries to illustrate the huge growth potential. According to the data of Mintel at the end of 2017, the coffee shop’s high frequency compared to 2016 Users increased by 2% and low-frequency users increased by 6%, indicating that more people are spending coffee in coffee shops. However, at the same time of these increases, independent coffee shops have declined sharply, and chain cafes have also slowed down their expansion speed. Starbucks has seen greater growth among 10 leading chain brands, slow growth of costa and Pacific coffee, and Taiwan and Korean coffee brands. Keep closing shop. In theory, the future of the coffee industry is very bright, and there are actually a variety of reasons that are not easy to do. As a new retail coffee business has not yet fully out of the northern high-street Guangzhou-Shenzhen high-frequency consumption get together, the next step, Yang Fei said, after all, Ruixing coffee only started five months, and then look back.
(Intern reporter Yan Fuyi also contributed to this article)