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New power vs old giant, what is the next growth key of trillion coffee track| Foodaily double eleven special

is in the 100 billion coffee market. What is the next key for brands?

Text: foodaily   

Source: foodaily daily food (ID: foodaily)

At 24:00 on November 11, the 13th tmall global shopping Carnival “quietly” came to an end, and the final transaction number was set at 540.3 billion, a record high. This is the first time in history that 10 billion brands appeared during tmall global shopping carnival, with 36 brands exceeding 1 billion and 485 brands exceeding 100 million.
Since the pre-sale, foodaily has tracked and observed the performance of various categories of tracks and brands in the food and beverage industry. Although this year’s new consumer brands are not as strong as last year, they are “far ahead” in category innovation Although the competition among brands is still fierce, they are still able to play. For example, three and a half meals are still at the top of the category. Many new brands such as daily Heiqiao, Wang Xiaolu, yuxintang and Airmeter have become the first in the segment track. New brands such as yongpu, yutianchuan and Akita Manman have doubled for three consecutive years
Of course, we also saw the excellent performance of many traditional brands in this promotion, and once again won the list from new consumer brands of the same category by virtue of their hard strength and younger playing method; there are also some new faces, such as luyouxian, zhenzhai and other brands that foodaily has paid attention to and reported, which also made their debut in this high-profile event, achieved excellent results and became the potential of each subdivision track Power stocks have attracted the attention of the industry and consumers.
At the same time, as the activity of the overall market flow slows down, we also find that brands pay more attention to the opening and integration of channels and online under the line of sight, and take the opportunity to take the double 11 as an opportunity to launch new products, attract new customers and maintain old customers, and consolidate brand awareness, rather than just promote sales.
In this regard, we have made an inventory of several popular tracks and their brands this year, and also traced some key actions and innovations of the brands in recent years. We hope to take the opportunity of double 11 to “get to know” these excellent brands again. The following is the first part of foodaily’s double 11 special – coffee.
New power vs old giant
The coffee battlefield is still intense
The whole coffee market in China is huge and growing rapidly. Compared with the 2% growth rate of the global coffee market, the annual growth rate of China’s coffee market is as high as 15%. Such a vigorous market will naturally give birth to a number of coffee brands. Therefore, in recent years, we can see that traditional coffee giants are constantly “stabilizing the city” in the consumer market , a large number of coffee upstarts have sprung up, and there is a great momentum of “the waves behind the Yangtze River push the waves ahead”.
Combined with the ranking list of tea blending brands released by Tianxia online merchants (top 10 brand sales amount from 0:00 on November 1 to 24:00 on November 11) Together with the list of coffee / cereal / beverage brands released by Yibang power during the first wave of tmall’s double 11 outbreak, we focus on the new local coffee brands Santun and a half, yongpu and yutianchuan, as well as the old coffee giants Nestle and Starbucks. Next, we will analyze these coffee brands that shine in the double 11 one by one!
Photo source: Tianxia e-commerce, Yibang power
Three and a half meals – precise positioning and emphasis on user experience, ranking first for three consecutive years
Santonban is a local coffee brand founded in 2015. In just six years, it has won No.1 of tmall’s double 11 coffee category for three consecutive years, surpassing Nestle, a traditional coffee giant. According to the latest data from the business consultant, during the double 11 (October 12 ~ November 10) this year, santonban’s sales reached nearly 130 million, 1.5 times that of the second place.
Considering that most consumers have the habit of hoarding goods during the double 11, santon30 specially launched 80 and 64 super barrels on the eve of double 11. In order to promote the renewal of super barrels, santon30 also cooperated with the shooting of one barrel Director Jia Zhangke cooperates to shoot humorous and nonsense advertising films, which not only achieves the purpose of new product publicity, but also endows the brand with young vitality.
After dismantling the three and a half brands, we can find that their great success mainly comes from two aspects:
On the one hand, it is an accurate category card. Three and a half meals are mainly instant boutique coffee. In the current consumption era of pursuing efficiency and high-quality life, three and a half meals must perfectly meet the needs of young consumers. Three and a half meals move the low-temperature extraction technology applicable to boutique coffee to instant coffee, which can not only realize the flavor of boutique coffee, but also retain instant coffee Convenience of drinking caffeine;
On the other hand, santon-a-half attaches great importance to user experience. Before launching a new product, santon-a-half will carry out a large number of user tests, including both professional food KOL and research institutions that have been deeply engaged in the food field for many years, as well as ordinary coffee consumers. According to the test results, santon-a-half will iteratively optimize the product, and finally push the new product to the market Market.
At the same time, the packaging design of three and a half meals also takes into account the user’s sense of experience. The numbers 0 ~ 7 on the coffee packaging represent the baking degree of coffee. The larger the number, the higher the baking degree. At the same time, the simple digital design combined with various colors gives three and a half meals more fun and beauty. At the moment when photography is popular, such packaging design is very popular with young consumers and many users are interested in it It will spontaneously post three and a half pictures Po to social networks, triggering secondary dissemination and making the product a social currency.
Source: three and a half official websites
This year, three and a half meals are also frequent actions. In September, the first offline coffee concept store was opened in Shanghai to sell ready-made coffee and bread, boxed instant freeze-dried coffee and surrounding commodities. The original espresso nougat was released at the end of August. Last month, coffee partners such as Oatmeal Cereal drinks and low sugar new coconut milk were launched to find new growth points around the coffee consumption scene.
Source: three and a half meals
Yutianchuan – redefine the ear hanging coffee and double its growth for three consecutive years
If the success of three and a half meals lies in finding accurate category cards, a large part of yutianchuan’s success lies in its redefinition of ear hanging coffee. This year’s double 11, yutianchuan has also become one of the 275 new brands that have doubled for three consecutive years during tmall’s double 11, and handed over a beautiful report card.
Yutian Kawakawa coffee originated from Yutian Kawakawa brand cafe in Osaka, Japan. It was founded by it engineer Lin Hao during his trip to Japan. His brand vision is to expand coffee, a product with strong petty bourgeoisie sentiment, to the public and create affordable and healthy ration coffee. Compared with a number of new consumer brands, yutianchuan is more low-key and more like a doer in the coffee industry. When it comes to yutianchuan, we have to mention its unique nitrogen filling and fresh-keeping technology and supply chain system with the feeling of serving the country.
Fresh coffee is the coffee concept pioneered by yutianchuan. Yutianchuan takes “fresh” as the first principle of the brand. In order to realize “fresh”, there must be strong preservation black technology. The core standard for measuring the fresh-keeping effect of ear hanging coffee in the coffee industry is residual oxygen. Yutianchuan’s nitrogen filled ear hanging bag realizes the high fresh-keeping standard of residual oxygen less than 1% through nitrogen filling fresh-keeping. Its newly launched fresh extract coffee liquid even reduces the residual oxygen to less than 0.6%, which realizes the ultimate fresh locking.
Photo source: yutianchuan coffee
In addition to the high standard of fresh-keeping technology, the supply chain of yutianchuan ensures that its coffee is still sold to the public at civilian prices on the premise of maintaining high quality. At present, the supply chain of yutianchuan is mainly distributed in Japan, South Korea and Brazil. We know that there is a huge gap between domestic and overseas coffee supply chain in Shanghai, but yutianchuan has begun to plan to introduce foreign industrial chain into China. At present, yutianchuan has invested and built a production plant of hanging ear coffee in Jiangsu, which is at the top level in China in terms of production efficiency and environmental protection.
During the double 11, yutianchuan also launched a new innovative product tianchuanjia curry rice, integrating coffee and curry to create a new mix and match combination; Launch 0 fat jelly coffee, combine coffee aroma with smooth jelly, especially add konjac powder and dietary fiber, and meet the taste + satiety at the same time; It also launched collagen ear hanging coffee to refresh and supplement nutrition… This series of cross-border attempts can be described as unique and bold.
Source: official account of Yu tin Chuan coffee.
Yongpu coffee – the young art school, the most coffee brand with Chinese characteristics
According to the battle report of Yibang power on November 12, yongpu’s omni-channel sales exceeded 50 million yuan, and more than 10 million cups of coffee were sold, reaching 2.4 times that of the same period last year. Among them, the sales of tmall flagship store exceeded 42 million yuan, a year-on-year increase of more than 100%.
Among the many cutting-edge coffee brands, yongpu may have the most joint names. The variety show “wonderful flowers”, the film work “young you”, “Wukong biography”, Meitong brand moody, QQ music skin… These familiar elements of young people are the joint names of yongpu.
This is related to the fact that the founder of yongpu Tiepi graduated from the Chinese Academy of fine arts. Because of the relationship between the Academy of fine arts, tin knows a lot of illustrators. Therefore, yongpu’s first joint product was launched in cooperation with the illustrator “Xiaozai theater”. It is this joint coffee product that quickly helped yongpu become famous in the market. Subsequently, the brand builds the brand through a series of operations such as IP co branding, self built IP and IP peripheralization, hoping to convey a lifestyle to consumers.
Source: Yong Pu coffee WeChat official account
Similarly, yongpu coffee also shows its ingenuity in product research and development. Take its main espresso solution product as an example. Generally speaking, cold extracted coffee solution needs to be refrigerated to ensure good taste, but it is inconvenient for consumers to carry. After continuous trial and error and improvement, yongpu finally developed an espresso solution that does not need to add preservatives and can be preserved at room temperature, which perfectly solves the pain point of non portability of cold extracted coffee solution, and has indeed made great efforts in product innovation.
Source: yongpu
With the continuous emergence of new coffee brands, traditional giants in the coffee industry are also “updating” their brands in an orderly manner.
Starbucks – continue to uphold the social spirit of coffee and focus on online and private areas
Starbucks has been 50 years old since it opened its first store in Seattle Parker market in 1971. In terms of human age, Starbucks is almost completely different from the current generation Z.
How does Starbucks communicate with young consumers on double 11?
As we all know, Starbucks has always focused on “coffee social”, and its star coffee number function is the best evidence. Users who create Star coffee can share their favorite coffee products with their friends. At the same time, the “help TA belt” function embedded in Star Coffee shortens the distance between friends. A cup of coffee is not only a leisure drink to relieve fatigue, but also an emotional bond between friends.
Image source: screenshot of Starbucks’ official wechat
Tiktok, Starbucks tiktok is also challenged by a series of challenges to the young consumers. For example, its OATLY launched the environmental theme GOODGOOD star challenge. It triggered a lot of young people to take part in the challenge with their short video. The #GOODGOOD star tiktok hit the list.
There is no doubt that among many coffee brands, Starbucks may be one of the most “social” brands. During the double 11, Starbucks also reflected “coffee socializing” in its official store home page and wechat brand area. Coffee express and special star delivery buttons are set on the home page of Starbucks official flagship store to facilitate users to directly purchase the landing page. The wechat brand zone gives priority to the display of “using stars” double 11 activities, and actively guides consumers to hoard goods and give gifts on double 11.
Image source: screenshot of Starbucks’ official wechat
In addition, Starbucks also launched “Starbucks with star Cup” boutique instant coffee on the eve of double 11 to enrich Starbucks coffee product line.
Image source: Internet
Nestle – systematic promotion of new products, 102 new products targeted
Nestle entered the Chinese market nearly 20 years earlier than Starbucks. In the 1980s, Nestle used instant coffee to teach the Chinese who were used to drinking tea what coffee was. At that time, the advertising slogan “Nestle coffee, delicious” narrowed the distance between the brand and consumers with colloquial wording.
Time has come to the current double 11, the coffee market has already undergone earth shaking changes, and Nestle is also constantly improving its product line and marketing methods to adapt to the changing market environment. In preparation for the double 11, Nestle coffee has prepared 102 new products, covering different types of coffee, including instant, ready to drink, capsule and concentrate.
Nestle has launched different new products for different groups. For example, Nestle has launched “absolute dark” new products for deep baking lovers; For “lazy cancer patients” who care about the quality of coffee, Nestle has launched coffee concentrate products with different flavors and DIY anytime, anywhere; For young people who like to taste fresh and care about the interest of products, Nestle can DIY different shapes of freeze-dried fruit coffee… On the double 11 this year, the number of new products of Nestle has doubled that of last year.
Source: Nestle China official account
Not only that, Nestle is also laying out high-end coffee tracks. As early as may last year, Nestle launched sense cafe, and then launched new products such as gilt flash bean series, gilt coffee series, Ethiopia ear series, Yunnan ear series and so on. According to foodaily’s observation, cafe also showed strong growth during the double 11 this year.
In terms of marketing, Nestle coffee is also making continuous efforts. During the eleven double period, the joint Bao can dream launched the limited peripheral and burning soul gift box, and interactive and released the joint gift box with micro-blog’s IP and “blue friends”, which was popular with young people. The fashion beauty KOL was invited to participate in the dissemination. The eleven tiktok attracted the attention of young people before the official start.
Photo source: screenshot of Nestle China’s official wechat
It is not difficult to see that the success of Nestle coffee’s double 11 mainly comes from its timely and complete new product strategy, strong brand supply and operation strength, combined with the marketing methods loved by young people, and the interactive communication with CO branded IP on social media is also one of its main market forces.
Fight 100 billion coffee market,
What’s the next key for brands?
Through the comprehensive analysis of the coffee brands ranked at the top of the list this year, we can see that excellent coffee brands have the following characteristics:
1. Be good at finding gaps in coffee categories: find segmentation and positioning from the existing coffee market pattern or redefine a certain coffee category, such as three and a half meals of high-quality instant coffee, which not only meets the high quality of coffee, but also takes into account the consumers’ pursuit of efficiency; Yutianchuan redefines the ear hanging coffee and realizes the ultimate freshness locking through high freshness preservation technology;
2. Timely and systematic new product strategy: in line with their own positioning, excellent coffee brands often launch new products suitable for specific activities and for different groups or sub categories, such as the introduction of new super barrels based on users’ hoarding mentality during the three meals, half doubles and eleven days, and Nestle based on the needs of category upgrading and expansion, Actively promote high-end instant coffee and coffee concentrate;
3. Younger communication methods: whether it’s co branding with well-known IP, designing packaging style in line with young consumers, or interacting with young groups through short video challenge… These are marketing methods based on consumption insight into young groups and have been verified by the market.
However, we also found new opportunities from these lists – the top players on the list belong to the category of soluble coffee, and instant coffee, coffee liquid and ear hanging coffee account for most of the top ten lists. So, what other opportunities can coffee break through? Foodaily summarizes the following three small trends.
1. Ready to drink coffee market is vacant, and the future can be expected
According to the data of iimedia research, the scale of coffee market has been expanding in recent years. The scale of China’s coffee market will reach 300 billion yuan in 2020 and 100 billion yuan in 2025. According to Mintel’s data in 2019, instant coffee accounts for 72%, freshly ground coffee 18% and ready to drink coffee 10% in China’s coffee consumption market.
According to ipso’s analysis of tea planting and coffee in 2021 – three major beverage categories, Nestle is dominant in the ready to drink coffee market, with a market share of 68.3%, about 14 times that of Beijing Huiyuan, the second place, and high market concentration. At the same time, both Cola giants have entered the ready to drink coffee market. Pepsi Cola launched a cola coffee mixed beverage called Pepsi caf é; Following the acquisition of coast with us $5.1 billion in 2018, Coca Cola also launched Coca Cola with coke, a fusion of Brazilian coffee and cola, at the beginning of this year.
Source: Pepsi caf é: coffee tea magazine, Coca Cola with coffee: the Coca Cola Company
Although the main players in the domestic ready to drink coffee market are still beverage giants at home and abroad, at present, China’s ready to drink coffee market is still in its early stage. China’s per capita consumption in 2019 is only 0.3 L / year, which is still far from Japan and South Korea (24.8 / 7.3). We can still expect the future of local emerging players in the field of ready to drink coffee.
2. Special coffee, connecting new flavor and taste
Due to the natural bitterness of coffee, special coffee with other elements in coffee is more and more popular with young people. Coffee + soda, coffee + milk, coffee + bubbles and other novel combinations continue to emerge, which also gives coffee more unique and rich taste and flavor.
Avocajoe avocado coffee adds avocado milk on the basis of vanilla cold extract coffee. It contains half of avocado’s high-quality fat and more than 20 vitamins and minerals, which helps to maintain an energetic state and has a rich and soft cream taste; The product is 100% botanical, contains no nuts and grains, is non genetically modified, does not add sugar, and relies on Siraitia grosvenorii to add sugar flavor.
Source: avocajoe
For example, the nitrogen filled coffee introduced by Foodaily before, creates a familiar foam texture for the product due to the filling of the gas, and promotes the release of aromatic substances from the beverage. Compared with the bubbles produced by carbon dioxide, the foam produced by nitrogen is softer and more dense, and the surface is smooth and velvety. At the same time, nitrogen does not add any acidity to the product, and does not need to add sugar or sweetener to neutralize the taste. In addition to improving texture and taste, nitrogen filled beverages are also visually excellent. The floating bubbles in the beverage fall like waterfalls, which visually dramatize the bubbling experience.
3. Functionality brings new trends
Coffee has gradually become a daily lifestyle drink. In addition to the basic refreshing effect, the diversified functional coffee has also greatly widened the boundary of the coffee track.
Laird superfood is an award-winning company manufacturing plant superfood in the United States. The brand advocates following the ancient nutrition method and launched the functional coffee product line at the beginning of this year. Based on the idea of homology between medicine and food, plant ingredients, such as mushroom extract, super food and plant adaptation, provide support and fuel for consumers and bring more functional choices. Its products contain three SKUs, namely boost (with organic mushroom extract, rich in antioxidants), focus (containing mushroom extract, adaptive herbs and cherries, which help to replenish energy and boost spirit), and Soother (containing marshmallow root and cardamom, which are beneficial to the intestines and stomach, and blueberry with prebiotic potential), Targeted to bring functional benefits other than refreshing to consumers.
Image source: Laird superfood
This cold brewed latte containing collagen launched by bulletproof is made from 100% Arabica coffee beans, especially grass feed collagen, MCT oil (medium chain fatty acid) and grass feed butter, with rich cream flavor and smooth taste. Collagen is beneficial to the health of skin, hair and nails, and MCT oil can quickly supplement energy for the human body.
Source: bulletproof
In general, with the entry of enterprise brands with various backgrounds, the coffee market is undergoing a fierce competition, and there are players in each price band and consumption scene. Therefore, targeting the subdivided category track and differentiated layout has become an important way for each coffee brand to obtain competitive advantage, and it is also a new chip for the brand to stand out. In the trillion yuan coffee market, we will wait and see who will top the list and what new faces will usher in next year’s double 11!
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