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the domestic coffee market is busy. Up to now, Starbucks is not the first choice for more and more consumers.
This year is a year of concentrated outbreak of new coffee brands, which can even be described as “Crazy”.
Public data show that in the first half of the year alone, young Chinese consumers drank more than 60000 tons of coffee beans; The coffee industry has financed 5 billion yuan a year; Manner, seesaw, m stand and other new brands have opened offline stores one after another, and at least 20 coffee shops are opened almost every month.
Even foreign coffee brands have also focused on the Chinese market – Starbucks’s first “XIANGLV workshop” store in the world has landed in taiguli, the front beach of Shanghai; The first Chinese store of “blue bottle coffee”, a pilgrimage brand known as the world’s boutique coffee lovers, has landed in Shanghai, and another 10 stores may be set up.
According to CCTV finance and economics, there are more than 8000 cafes in Shanghai, which is one of the cities with the most cafes in the world. At the same time, the number of cafes per 10000 people in Shanghai is 2.85, which also reaches the average level of global cities such as London, New York and Tokyo.
This year, Ruixing Jedi fanhong and manner’s small store model are popular with capital. Tims China is expanding rapidly and will be listed soon. Three and a half tons, Shicui and yongpu have opened stores one after another… The fierce battle of coffee moves from online to offline, and the front radiates from Shanghai to Beishen and other first, second and third tier cities.
The domestic coffee market is becoming more and more lively, and the coffee track is becoming more and more “rolling”. Can young people still have enough?
Annual “volume” of coffee 5 billion
How fast is the new brand?
The most representative manner has been financed for four rounds in half a year, and the valuation has reached 18 billion yuan; In two and a half years, five rounds of Shicui were financed, with a valuation of 5 billion yuan; In less than three and a half years, five rounds of financing have been completed, with a valuation of 4.5 billion yuan.
According to incomplete statistics of online public data, this year alone, there were 20 financing cases in the coffee industry, with a total amount of more than 5 billion yuan. Among them, manner Lianrong has 3 rounds, m stand and Shicui Lianrong have 2 rounds.
Behind these new brands, in addition to well-known institutions such as Sequoia Capital China, IDG capital, GGV Jiyuan capital, Gaorong capital and black ant capital, industrial capital such as byte beating, Tencent and meituan Longzhu have also been sold for many times.
It is also obvious that in 2020, capital’s attention to the coffee market will mainly focus on online brands, and in 2021, it will focus on offline chain boutique coffee.
For example, nowwa coffee, which recently received a financing of 200 million yuan, had only 400 stores at the beginning of this year, and now covers more than 1500 in 20 cities. Its revenue increased by more than 600% year-on-year in the first three quarters of 2021.
In the view of Founder Guo Xingjun, the supply of stores in China’s coffee market is not very high except Shanghai, but the demand is growing rapidly. Like Ruixing, Nova coffee needs to quickly increase the supply. This round of funds will also be mainly used for product R & D, supply chain construction, store opening and it system construction.
It should also be mentioned that most of the Arabica coffee beans produced in China are imported, except a small amount of Arabica coffee beans produced in Yunnan. In the first half of the year, the import volume was 61.77 million kg, with a total import volume of 238 million US dollars, a year-on-year increase of 76%. If it remains unchanged in the second half of the year, the annual import of coffee beans will exceed 120000 tons.
Recently, the price of coffee bean futures has soared to the highest point in nearly a decade, which also means that the price of coffee may rise next year, and small coffee enterprises will be affected first. By the way, Ruixing has quietly raised the price of Mimi.
In addition, according to enterprise survey statistics, in the three years since 2019, there have been 79 financing cases of coffee track, with a total financing of 14.7 billion yuan.
Despite the competition for instant coffee in the early years, the real rapid rise and growth of coffee in the Chinese market has occurred in the past five years. Driven by multi-level consumer demand, the coffee market has become more diversified. With the change of infrastructure, the coffee industry is also undergoing reconstruction.
From niche to mass, from imitating Starbucks to innovative development, Chinese coffee brands have unlimited prospects. The crazy influx of capital also believes that the chained Chinese coffee brand can be comparable to Starbucks.
Today’s young people no longer like the same and standardized cafes. Investors are also thinking about what kind of Chinese coffee brands Chinese young consumers will cultivate. But what is Chinese coffee culture?
But the answer has not been found. The brand has been “rolled” first. The products are more and more similar, and the packaging is more and more similar. The innovation ability did not rise, but first fell into the strange circle of plagiarism.
In addition to the “gold absorption volume” and “product volume”, the “cross-border volume” also began to be hot. Nongfu mountain spring, Yili, Mengniu, Xi tea, Naixue’s tea and other brands have successively launched their own coffee drinks. The innovative route of coffee, such as post office coffee in shapowei, Xiamen, traditional Chinese medicine health coffee in Tongrentang, fruit extract coffee in Nestle, has made more and more ways of “coffee +”.
Starbucks overturned and milk tea shops sold coffee
The domestic coffee market is busy. Up to now, Starbucks is not the first choice for more and more consumers.
It is Starbucks that has really educated the Chinese market with freshly ground coffee. It is Starbucks that has made a lot of money in China with coffee, and it is Starbucks that has repeatedly overturned in China because of food safety problems.
In 1999, Starbucks entered China for the first time and lost its foothold in Beijing international trade. Against the backdrop of various luxury stores around, Starbucks has also become synonymous with “high-end” at present. Holding a cup of Starbucks in your hand has become a symbol of identity.
After 23 years, Starbucks is no longer a new species in China. Starbucks began to blossom everywhere near the core business districts and medium and high-grade office buildings all over the country.
Data show that as of October this year, Starbucks had more than 5300 stores in mainland China, covering more than 200 cities. Starbucks China’s revenue in the third quarter also exceeded 5.8 billion yuan. China has become Starbucks’s second largest market in the world.
Just when Starbucks established its coffee “empire” in China, it showed its “old state” and frequent problems against the backdrop of a number of new brands.
In December, two Starbucks stores in Wuxi were reported by the media to have problems such as the use of expired ingredients and tampering with the shelf life. For a time, it caused a great uproar, and then the two stores involved closed for rectification.
However, this is not the first time Starbucks has a food safety vulnerability. Previously, there have been problems such as selling expired sandwiches and finding cockroaches and flies in food.
In the black cat complaints, there are thousands of complaints about Starbucks, most of which are related to food safety.
The impact on the coffee “big brother” is not only the problem of weak supervision, but also the pursuit of new brands. Starbucks, once regarded as exquisite and noble, is “rustic” in front of the new generation of fine coffee.
“Starbucks’ brand effect is greater than product quality. For the same cup of 30 yuan coffee, more people will choose to go to a coffee shop with higher cost performance.” Many consumers say that Starbucks coffee is “unsatisfactory” by comparison. The reason why we choose to spend at Starbucks is, to some extent, that we are close to the company and are suitable for meeting customers or business office.
It is not only the younger generation of coffee makers that make Xingda deeply involved in the coffee industry, but also tea brands began to eat this coffee taste “cake”.
When Peng Xin selected the site for Naixue’s tea for the first time, he said, “I want to open a space like Starbucks, but I sell tea.” The third space created is similar. In terms of products, Naixue has already set foot in coffee.
Not only Naixue’s tea, the new tea drink “invasion” of coffee has already begun. Xi tea launched the coffee series in early 2019, combining the characteristic tea drinks of Xi tea with coffee to cut into a new track. This year, it invested in sesaw’s tea and opened the coffee market with fruit; Coco caf é is also accelerating its transformation to tea + coffee this year; Even Michelle ice city launched the “lucky coffee” priced at 5-10 yuan in 2017.
However, coffee lovers say that tea loving and Naixue are not “professional coffee people”. They would rather spend 40 yuan on a cup of tea loving milk tea than 20 yuan on a cup of tea loving coffee.
Nevertheless, the new tea brand still achieved good results, expanding from single products and stores to the whole country. With its own advantages, new tea has become a “new troublemaker” in the coffee market by “hanging” traditional coffee with differentiation and innovation.
Under the double attack, Starbucks was more or less affected. According to the financial report, compared with the previous quarter, Starbucks’ revenue growth slowed significantly in the new quarter.
Many consumers call Starbucks “old”, but what affects Starbucks is “mentality”. If you want to reproduce brilliance in the Chinese market, you can’t “win” by relying on brand strength alone. While improving product strength and supervision, and establishing a new management model, you should “become one with Chinese young people”.
It was lucky to have Rui before and tims after. There was a fierce battle in offline stores
Ruixing, who had completed the life of other companies in three years, was “resurrected” and entered a new “reincarnation” in 2021.
Stores continued to join in, restarted the investment attraction of unmanned coffee machines, changed new spokesmen, and launched new products one by one, began to continuously realize overall profits, and financing also arrived as scheduled.
Since the current management of Ruixing took office in May 2020, Ruixing’s business logic has obviously returned to the product itself from “burning money and expanding stores”, focusing on the profit model of Runtong single store. In the eyes of some investors, the “transformed” Ruixing is likely to be the next potential stock expected to obtain excess returns.
In the past two years, manner, who founded a boutique cafe, was also amazing. From the earliest “street coffee” to being scrambled by capital, manner’s financing ability and explosive growth are amazing.
In 2015, Han Yulong and Lu Jianxia from Nantong opened their first store on Nanyang Road, Shanghai. A small shop with a window of 2 square meters and a canopy at the door, “street coffee” has entered the public’s vision.
The turning point comes in 2018. At the time point when most people saw Ruixing expand 2000 companies in two years, Xu Xin, the “Queen of venture capital”, personally joined manner with today’s capital. She used her own resources to lead manner’s first three rounds of financing.
Xu Xin brought manner coffee not only money, but also talents. In July 2020, Jin Binbin, the former investment manager of today capital, joined manner as CEO in his personal capacity and deeply participated in manner’s operation and management.
Manner only opened 8 stores in Shanghai in the past three years. After today’s capital investment in October 2018, only five stores were added at the end of that year. But at present, the number of manner stores has rapidly opened to about 200.
As the “leader” of domestic coffee track, almost all coffee start-ups are learning from Ruixing, and even take surpassing Ruixing as one of their goals. Manner, who is regarded as the “latecomer” of Ruixing, has made faster progress after “breaking up” with today’s capital.
Tims China has also opened stores very fast this year. According to tims China, the number of stores has doubled since the beginning of 2021, and 1500 stores are still planned to be opened in China in the next few years.
Seesaw also accelerated. In the first half of the year, it opened nearly 30 stores, more than the sum of the past few years. This year, it is still sprinting to 100 stores. Algebras and M stand also accelerated after financing this year, reaching the scale of nearly 100 stores.
The iteration of technology has promoted the new growth of coffee online, and the characteristics of “brewing is convenient and everything is soluble” have greatly reduced the space and time limit for drinking coffee, which also makes the three meals and a half and yongpu quickly integrate into the lives of consumers.
This year, three and a half meals, Shicui and yongpu went offline and opened stores. They are all selected in first tier and new first tier cities, paying more attention to scene experience, and their products are mainly Creative drinks.
In addition, chain convenience store brands are also overweight coffee. For example, the convenience store coffee “sleepless sea” relying on convenience bee has also joined the market competition focusing on 10-20 yuan. It is planned to expand the number to 1500 nationwide by the end of this year.
Not to mention, McDonald’s and KFC have also been laid out early. Recently, McCaf é said that it would invest 2.5 billion yuan in the next three years to accelerate the layout of the coffee market in mainland China. It is estimated that there will be more than 4000 stores in China by 2023.
In the first November of 2021, 22300 coffee related enterprises were added in China, and more and more coffee shops were opened.
Hou yongpu, founder of yongpu coffee, once said, “when we open offline stores, we don’t see the heat of capital, but from the perspective of brand and user communication. Offline stores are different formats, which can let us have more links with users.”
Data show that China’s coffee consumption is growing at an alarming rate of 15% per year. It is expected that by 2025, China will grow into a huge coffee consumption empire of trillion yuan.
The development of 2020 has changed significantly. Online coffee brands have begun to increase their offline layout, tiktok, little red book and public comment to the street and shopping centers. Of course, offline boutique coffee shops also accelerate the online layout.
However, the speed of opening these coffee shops cannot be compared with Ruixing, which opened 500 stores in the previous six months. At present, there is no brand directly benchmarking Starbucks in the local boutique coffee.
In the eyes of 1000 people, there are 1000 kinds of coffee drinking methods. The taste and formula of coffee are constantly innovated and improved, and constantly seek innovation and change in the consumption preferences of Chinese people.
The story of coffee continues, and it will be more lively in 2022.
Author: Wang ton; Editor: perilla; Source: tide watching new consumption (ID: tidesight), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);
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