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Starbucks teamed up with Alibaba to conduct a takeaway business in China. Who is eating into the domestic coffee market?

via:博客园     time:2018/8/3 10:01:57     readed:216

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Starbucks' first-quarter earnings report showed that operating profit fell 7.6% in the third quarter of 2018, while same-store sales in China fell 2% year-on-year. Statistics show that this is the first time in September that Starbucks China's operating profit has fallen. At the same time as the decline in the profit of the old coffee Starbucks, it is the rise of a large number of new coffee shops. Some experts said that the coffee market will continue to differentiate in the next three years, and high-end and low-end coffee brands will have their own enthusiasm.

Starbucks profits fall

Starbucks is a US chain coffee brand that has been operating in China for many years. In 1999, Starbucks entered China. Currently, Starbucks has opened more than 3,400 stores in more than 140 cities across China. Starbucks said that China has now become the fastest and largest overseas market for Starbucks. In other words, in addition to the US market, China is the most important and largest market for Starbucks.

However, the earnings report released by Starbucks has not been satisfactory. The financial report shows that China/Asia Pacific market operating income rose 46% to 1.2 billion US dollars, operating profit margin fell 7.6 percentage points to 19%, and same-store sales in China fell 2% year-on-year, which is the first operating profit in Starbucks China market in 9 years. The second time it fell. Starbucks explained this as a change in equity.

However, only “equity changes” may not explain why Starbucks' profits have fallen. Chinese food industry analyst Zhu Danpeng told the reporters of Beiqing Daily that the decline in Starbucks' performance in China is related to the emergence of other competitors. Internet + Cao Ruixing and other brands have eclipsed it, and other types of tea are facing the new generation. Also seized some of the coffee market share.

Traditional coffee shop stores cost more than 40%

At present, in addition to Starbucks, there are many types and brands of coffee shops on the market. For example, positioning Costa, coffee, etc. similar to Starbucks.

According to official website data, in 2007, Costa Coffee opened its first store in China. In 2012, Costa opened more than 200 stores in China. Man coffee currently has hundreds of stores in China. The price of a cup of coffee in Starbucks is about 30-36 yuan, the price of a cup of coffee is 32 yuan, and the price of a cup of coffee is about 28-38 yuan. According to the price, such coffee shops sell at a higher price, and the coffee is mainly consumed by the store. Many consumers said that “going to a coffee shop is not for coffee, but for the environment. In a coffee shop, you can talk, work, study, and have a cup of coffee to sit for an afternoon. ”

In such coffee shops, store rentals and operating expenses account for a relatively high proportion. According to data from Smith Street Business Consulting, 26% of a Starbucks latte cost is rent, 15% is the store's operating expenses, and the regular administrative department spends 6%. In addition, 18% is profit, 13% is Raw material costs. It can be seen that the cost of the store accounts for more than 40%.

Ruixing coffee delivery averages 18 minutes to complete

The emerging coffee brand Ruixun Coffee is operated in a combination of delivery and self-promotion. It uses the new retail model —— users pay online for orders, offline scan code for meals. Ruixing Coffee CMO Yang Fei said that although it is different from Starbucks in terms of product model, pricing and store selection, at this stage, we hope to impact the target Starbucks and compete with it.

According to the information in the APP, the price of a cup of Ruixun coffee is 21-27 yuan. Almost all coffee and beverages participate in the activities of “buy 2 get 1 and buy 5 get 5”. According to Yang Fei, this is a subsidy activity of Ruixing. He also said that as a new brand, Ruixing has a high user repurchase rate. “At present, the user repurchase rate is more than 80% in stores that have been open for more than 3 months. One is good quality, and the other is word of mouth. The third is cost-effective. ”

Then, after stopping the subsidy, what is the advantage of Ruixing? Rui Xing said that the use of the new retail concept, full data operation and management, and through the scene traffic beyond the offline traffic of traditional stores, resulting in low management costs, low customer costs, fast traffic cracking, scene costs are basically zero, Traditional coffee shops only cost more than 30% of the rent and decoration. After cost savings, Ruisheng can purchase better coffee beans (more than 20% more expensive than regular commercial coffee), better coffee machines (Swiss top equipment such as Shelley, etc.), better barista (WBC World Barista) The championship champion team) to improve the quality of the coffee.

Recently, Starbucks has also launched a take-out service. Ruixing Coffee said that the essence of Ruixing Coffee is not take-away coffee, and take-away coffee is not new retail coffee. Unlike traditional coffee brands, Ruixing Coffee is heavily weighted by Internet big data and artificial intelligence. The coffee transaction infrastructure is designed to meet the consumption scenarios of catering, self-raising and delivery.

However, Ruixun Coffee is very confident in its distribution business. Ruixing said that only for the distribution business, the average order time for customers to send orders from the APP to the coffee is 18 minutes, “30 The minute is slow to compensate. The timeout rate is 0.4%, and the customer satisfaction is 99.3%. These indicators are still improving.

Ruixing Coffee has developed rapidly. It was put into trial operation on January 1 this year. At present, 809 companies have been opened, and nearly 1,000 stores have been contracted for renovation. It is estimated that by the end of the year, 2,000 stores will be opened. At the core of all the opened cities, Ruishen Coffee will achieve 100% coverage, and the store spacing will be less than 500 meters. Customers can find a Ruixing coffee shop within 10 minutes.

Convenience stores, fast food restaurants, low price of coffee

In addition, there are coffee services including 711, McDonald's, "Mc Coffee", KFC and other brands. These stores are not typical coffee shops, but their coffee is not small. Some consumers said that the 711 launched fresh ground coffee supports “save coffee” service, for example, consumers can buy more than one cup of coffee at a time, store excess coffee in the store, and take it away at any time. 711 coffee is only sold for 4 cups per cup. -12 yuan.

According to statistics, the convenience store coffee sales volume is 40-50 cups per day, and the highest record is 180 cups. Wheat coffee, KFC, etc., also use Arabica coffee beans, which are now steamed, and the price is only half of the price of Starbucks.

However, due to the small number of coffee shops on the market, the sales of such cheap coffee have been good. The data in 2015 showed that Starbucks' market share was about 73.3%, and McDonald's wheat coffee took second place, 9.3%, Costa. Coffee and Pacific Coffee share a 12.9% market share. However, many consumers said that they would not go to McDonald's and other chain stores to buy coffee, but buy a cup of coffee while buying light food. Among them, breakfast accounted for a large proportion, many consumers said in an interview, go to fast food restaurants Or a convenience store to buy a breakfast while buying a cup of coffee as a match.

China's coffee market will reach a trillion

According to the data of the China Business Research Institute, with the improvement of the living standards of our people and the growing awareness of coffee culture, China's coffee industry is generally on the rise. According to the London International Coffee Organization, China's coffee consumption is growing at an astonishing rate of 15% per year compared to the global average of 2%. It is estimated that by 2025, China will grow into a giant coffee consumption country of 1 trillion yuan.

The rapid development of China's coffee industry has driven the coffee chain industry. With the improvement of living standards of Chinese people, drinking coffee in coffee shops has become a daily leisure activity, and the market size of coffee shops has also expanded. In 2013, the size of China's coffee shop market was only 13.5 billion yuan. In 2016, it exceeded 20 billion yuan. It is estimated that the market size will reach 27.1 billion yuan in 2018. According to the China Merchants Research Institute's "2018-2023 China Coffee Shop Market Prospects Survey and Investment Opportunity Research Report", the number of coffee shops in China has grown very rapidly. In 2007, there were about 15,906, and by 2012, it has grown rapidly to 31,794. It is estimated that the number of coffee shops will exceed 140,000 in 2018.

Some coffee lovers said that many years ago, instant coffee “three in one” was a very foreign commodity. Later, with fresh ground coffee and drip coffee, people increasingly love sitting in coffee shops to talk about things and leisure. Many people also moved their coffee machines home. Nowadays, many people carry portable coffee machines with them, or simply take a cup of coffee for sale.

Ready-to-drink tea is also grabbing the coffee market

Zhu Danpeng said that in addition to various types of coffee shops, instant tea is also taking the market share of the entire coffee consumption. “The new generation is the mainstream consumer group. Many brands, categories and formats are eyeing them. They are trying to get a piece of cake on them. In soft drinks, tea is a part of the market. ”

Hi tea, Naicha tea, a little milk tea, coco milk tea, happy lemon & hellip; … now more and more tea shop or ready-to-drink tea is transformed into a “red store”, consumers need to queue up to be less Hours, more than three hours to buy a cup of milk tea, drinking a cup of red milk tea has become a fashion.

At the same time, many tea shops have also received institutional investment. For example, Xicha has received IDG investment of 100 million yuan, and a little milk tea has also received US$100 million investment from Meiya. Some of the tea shop's franchise models have allowed their stores to expand rapidly. For example, a little milk tea has more than 600 stores, the number of happy lemon stores exceeds 1,000, and coco milk tea exceeds 2,000.

“In the future, the whole Chinese coffee will have an outbreak in 2018. During the outbreak, a pyramid of consumption grades will be formed. Starbucks, Costa and so on may occupy the top of the pyramid. Ruixing and Man Coffee occupy the middle and upper waist, McDonald's, 711. Waiting for the middle, there are some unknown coffee shops underneath. Different consumers will choose different brands of coffee according to their different consumption habits and grades. "Zhu Danpeng said that these brands of coffee will have some competition with each other, but more is a complementary relationship. He believes that in the next three years, China's coffee market will gradually differentiate and be fixed around 2020, so in these three years, brands will continue to compete for consumers.

Text / reporter Wen Yu for the picture / visual China

focus

Starbucks promises a 30-minute takeaway delivery

(Reporter Yan Lishuang) Yesterday, Starbucks Coffee Company and Alibaba Group jointly announced a full-scale deep strategic cooperation involving Alibaba's hungry, box horse, Taobao, Alipay, Tmall, word of mouth and other businesses. line. Starbucks China CEO Wang Jingwei said that starting in September, Starbucks will rely on Ali's hungry distribution system to conduct pilot projects in major stores in Beijing and Shanghai, covering more than 2,000 stores in 30 cities by the end of the year.

Starbucks has always stressed that the demand for delivery is very high. Hungry, the consumer said that the consumer only needs to place an order in the APP, no need to choose which store to buy, the dispatching system will automatically arrange the optimal solution, and then through 8 minutes of production, 22 minutes of delivery, including the distribution of equipment, distribution of the rider Scheduling, shortening the time to 30 minutes as much as possible allows consumers to get coffee, ensuring that the beverage remains at its best quality after 30 minutes and delivered to the customer.

The Starbucks side denied the pressure of performance before pushing the takeaway. When Wang Jingyi answered the media question, he said: "Of course, we can start the delivery service faster in a very simple way, but Starbucks hopes to do the best for this service, and it takes time. We can ensure that the delivery service can provide the same high quality coffee and Starbucks experience in the store, we can start this delivery service, and now we feel we are ready.

It is reported that Starbucks will also create the first brand delivery kitchen with the box horse fresh raw food — — Starbucks & quot; "delivering star kitchen", open up "the third space", another store outside the store dedicated channel.

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