a high-level person of Ruixing’s start-up team once told us that at the beginning of the birth of Ruixing, we only saw a small entry point of market opportunities – Coffee delivery. The market environment around 2018 is that the demand for takeout is booming, but traditional giants such as Starbucks and Costa do not provide takeout services. Many office buildings and parks have special coffee errands.
Starbucks itself has a high unit price per customer and a high purchasing fee. In order to make a single order, a person in an office usually serves seven or eight cups at a time. At the same time, these agents also earn a lot of money, and even realize a monthly income of 100000 when the single volume is large.
this enables Ruixing’s startup team to see the huge demand for takeout coffee and two possible directions to meet the demand and further open the market: one is to open more stores, and the other is to reduce the unit price per customer. In the way of reducing the unit price of customers, the
has played a prominent role so far, including the improvement of supply chain efficiency driven by data and store efficiency driven by automation equipment, and the abandonment of the third space starting from online delivery. Of course, when a group of Internet people swept the market in the form of subsidies, Ruixing also took many detours. Then, until the opening of the store model in the sinking market and the birth of the popular single product, raw coconut latte, Ruixing not only turned the corner, but also reached its current height.
Ruixing saw the opportunity to sink the market. However, at the beginning, it was too difficult to sink through coffee, so Xiaolu tea was born. However, the independent operation of the two brands appears inefficient as the consumption habits of the sinking market become more similar to those of the high-speed cities, and the two brands eventually merge. Perhaps, at the same time, the R & D vision and R & D ideas have been merged. In the continuous horizontal jump and exploration, we stepped on the popular category of coconut.
before the Ruixing model was publicly verified in Q1 2022, the price band of coffee had basically formed. The
is located on the top floor of the top-level coffee brand, such as blue bottle, with a single cup price of about 40 to 50 yuan; Secondly, represented by the business social networking Starbucks and the trendy social networking m stand, which mainly play the third space, the price of a single cup is about 30 to 40 yuan; Next, there are affordable boutique coffee such as Ruixing, manner and Novak coffee, with a single cup price of about 15 yuan; The lowest layer is the retail coffee products of cold extraction and lyophilization, such as three and a half tons and Sumida Kawa. The price of a single cup is about 5 yuan. At the same time, the price of a single cup is about 10 to 20 yuan, which is also a parity drink price band verified by the tea industry and with a broad consumption base. Consumers’ purchases are more frequent, and they can also have sufficient sinking space and the upper limit of the number of stores. Guo Xingjun, the founder of
Nova coffee, also expressed his firm belief in affordable fine coffee. He cited the data that the average single cup price of the three most cost-effective coffee in the North American market is about US $3 (Starbucks, Dunkin’d)
first of all, the main raw materials of coffee are coffee beans and milk, both of which have mature and global industrial system and supply chain system. Compared with tea + fruit, the management difficulty is reduced by several orders of magnitude.
secondly, in the process of store production, although some coffee chain brands still use semi-automatic coffee machines for the sake of taste, and the training period for baristas is about 3 to 6 months, many brands, including Ruixing, TIMS and Starbucks in most stores, have already used full-automatic coffee machines. If the training is fast, the baristas can take up their posts within a few days. Under the use environment where several buttons on the automatic coffee machine are required to be pressed, the operation requirements of the
are much lower than those of the tea shop for peeling grapes, cutting mangoes and tamping lemons by hand. With a large enough market space, the standardization of products and store types also means that entrepreneurs can quickly lead new teams to launch. Cao Yuzhi, founder of
crooked coffee (cup unit price: 10-15 yuan, started in Ningbo and now has more than 20 stores), who has transformed from the tea industry to the coffee industry, once took tea Baidao as an example to explain to us how quickly rising stars along the success template after having successful experience and absorbing industry talents from successful teams: in 2019, tea Baidao only had hundreds of stores in China, However, by the end of 2021 two years later, the number of stores had reached nearly 4500.
in the coffee industry, the expansion speed may be faster by adding entrepreneurial teams with chain experience.
we have observed that in the financing boom in 2020, the founders of coffee brands that received financing are still mainly old-fashioned coffee people. They usually enter the coffee industry for reasons such as feelings or personal preference, and have many years of operation experience and industry accumulation in several coffee shops. They have come to the coffee investment outlet —
. Then they just joined the coffee track around 2020, The typical portraits of coffee entrepreneurs who have received investment in the past year are more inclined to former Ruixing people (such as the founding team of peekoo coffee) and former tea drinkers (such as the founding team of Wai coffee and four leaf coffee). Compared with the previous type of entrepreneurs, although the amount of financing they can get is no longer crazy, starting from scratch also makes their learning and further improvement of standard answers more light and burden free, and they often have more experience in the standardization and expansion of chain stores.
is, it can not escape the geographical attribute of opening offline stores, which determines that chain coffee stores are not a one-stop market. While various regional brands are emerging, they learn from Ruixing, and also carry out micro innovation based on Ruixing mode based on their own team advantages, which is different from Ruixing. A most intuitive example of
is that some entrepreneurs mentioned to us that in the regional market where their brands are located, shopping
also has meituan takeout data, which shows that in 2021, the coffee order volume of the third tier cities increased nearly 2 times year-on-year, and the coffee order volume of the fourth and fifth tier cities increased more than 250% year-on-year. In the horizontal comparison of niche categories, coffee orders increased by 178.7% year-on-year, far exceeding tea drinks (90%), Chinese cakes (120%), snail powder (58%) and stewed snacks (50%).
in this process, the product innovation represented by the raw coconut latte mentioned above is only the first step of “pulling new”. After pulling new, how to “promote life”, so that consumers can improve their tolerance to the bitter taste of coffee and cultivate a fixed coffee consumption habit is still a problem that needs to be solved with concentrated efforts.
“if they were allowed to drink American style and espresso at the beginning, many people would not drink coffee for life,” said Li Junwei, founder of four leaf coffee, “We will make use of our digital capabilities to allow consumers to slowly adapt. For example, when we find that consumers have already consumed fruit coffee in the store many times in the background, we will recommend that they try cold extraction the next time they come, and then gradually latte, American style, hand brewed and other coffee beans of different flavors will be transformed along this path.” A 6031 coffee entrepreneur shared with us such a data insight: coffee is inherently more addictive than tea, and more prominent in refreshing function. Even if consumers are cultivated with various flavors of coffee, they will still have the need to reduce sugar when they drink to a certain extent, and finally switch to pure coffee such as American style. “It’s like when young people start drinking beer and then drink Baijiu later. Every time they drink one more glass, they can never return to the past.” A 6031 strategic marketing expert Xiao Ma song once described the significant difference between coffee and milk tea, especially in his attitude towards new products and classic products: “for example, coffee is like a symphony, and the audience can listen to Beethoven every time they come to listen to it; but milk tea is a talk show, and the audience listens to it. You can’t tell the same story. You can only have new stories.”
if this insight is indeed proved to be universal, then it means that compared with tea, the choice of large items for loyal coffee users is sufficient
food people are “watching”