Let's take a look at what it's like for new tea companies to get involved in coffee business.
Founder of 7-point sweet "Fighting" coffee: the daily turnover of a single store exceeds 10,000, and 500 stores will be opened next year.
The tea boss makes coffee, which once again shows the efficient speed of drinking tea.
Some time ago, the first coffee brand "Light Wake Coffee" was launched, which was 7 minutes sweet. It took only 58 days from the establishment of the project to the opening of the first store, and it ranked first in public comments and Tik Tok rankings within one week of opening. The average daily turnover of one month's operation is over 10,000. At present, there are more than 20 stores in preparation.
Xie Huancheng, founder of Qifen Sweet, made a deal. What's the difference between this coffee brand?
7 minutes sweet founder trader
Wake up coffee, popular in Suzhou.
Two years ago, the news that Zhang Hongfu, the general manager of Mi Xue Ice City, "switched careers" to make coffee attracted great attention in the industry.
In the past two years, Lucky Cafe has more than 1500 stores, becoming the third rising national brand after Starbucks and Ruixing.
Recently, after Zhang Hongfu, the founder of another tea brand wanted to make coffee.
"At present, I am full of confidence in the waking future." Xie Huancheng, the founder of 7 Minutes Sweet, told me that he is now personally leading a team to make light coffee.
The founder personally managed to make coffee have the effect of drinking tea.
"It took us only 58 days to determine the idea from August to do a good job in top-level architecture content, product testing, store location, decoration and opening."
In the past, even if an old driver entered the venue, it would take 3 to 6 months to incubate a new brand and 58 days to open a light coffee. What's it like?
On September 30th, the first Light Wake Coffee was put into trial operation in Shiquan Street, Suzhou. "The performance of this store really exceeded my expectations. After nearly 40 days of operation, the average daily turnover of a single store exceeded 654.38+00000 yuan, and it became the first in the public comment and Tik Tok coffee list within one week of opening. More than 20 stores will be opened by the end of this year. "
On the take-out platform, we can see that shiquan street store on the take-out platform left on June 65438+1October 65438+1October 7. As of press time (June 65438+1October 9), the single-platform take-out order has exceeded 5000.
As an old tea maker who has been in business for more than 20 years, what is unique about Xie Huancheng's weak coffee?
Five ideas behind making seven-minute sweet coffee
"I personally have coffee feelings. This is the third time I have tried to wake up coffee. " Xie Huancheng revealed that Xie Huancheng has several market insights for choosing the third coffee venture this year:
1. The growth period of coffee brands will last for 3-5 years, so it's now or never.
"Coffee must be ready. This category will maintain rapid growth in the next three to five years, just like tea five years ago. " Xie Huancheng said.
The market scale of ready-made coffee is also growing rapidly. The Report on the Development of China's Ready-made Coffee Category in 2022 released by Meituan and Carmen shows that the market size of China's ready-made coffee industry reached 89.7 billion yuan in 20021year, an increase of 4 1.7 1% compared with 2020. It is estimated that in 2023, the market size of China coffee industry will reach 65,438. The proportion of existing systems in the total size of the coffee industry continues to rise.
Similarly, in the market, coffee consumption is also increasingly awakening. Recently, in the public comment and the "2022 Coffee Trend 10 Megatrend" published by Camen, the public comment data shows that in 2022, the coffee search volume increased by 452% year-on-year.
This year, major brands are making coffee across the border, and many state-owned enterprises/central enterprises such as PetroChina and China Post attach great importance to this category. At present, it is still a niche, but the future is immeasurable.
2, positioning "new Chinese light coffee", good drink is the first principle.
Now regional chain coffee brands are emerging all over the country, and major catering and tea brands are also getting together to incubate coffee brands. How to tell the difference when you wake up? This is the first question before Xie Huancheng.
"The first principle I follow in this matter is delicious, because coffee is still bitter and not delicious in many people's hearts."
"That how to drink? Must conform to the drinking habits of Chinese people. What are the drinking habits of China people? It's from China, fresh and satisfying. We position ourselves as a new Chinese light coffee that meets the tastes of Chinese people. " Xie Huancheng said.
What should I do with the new Chinese light coffee products?
3, pass fresh fruit coffee, the main "super latte"
Referring to the methodology of new tea and the current trend of mainstream products in the coffee market, Xie Huancheng initially wanted to make fresh fruit coffee:
It is what most emerging coffee brands are doing to attract consumers who are familiar with the taste and lower the threshold for trying for the first time, such as chain brands such as "Shouldn't have" and "Ka Xiaoxiao".
"But considering the customer base of fresh fruit coffee, there is a high degree of overlap with the customer base of tea, which requires a high degree of product iteration of the brand, but what we need to do is a coffee product with strong addiction, high repurchase rate and high brand loyalty. From my current observation, latte should be the single product with the best sales ratio. "
On the basis of traditional latte, we upgraded it from two dimensions: fresh and delicious, and created a super latte series. At present, the TOP3 products in the store are: super raw coconut latte, avocado raw coconut latte and panda latte.
"At present, the sales volume of super latte series accounts for more than 70%, and the repurchase rate exceeds 40%, which basically meets our expectations." Xie Huancheng revealed.
4. Identify the market gap and aim at the price band of 9~ 17 yuan.
When talking about consumption in China, we can't avoid the price band. In the beverage industry, the success of products depends largely on the accuracy of price band selection.
"I think the current coffee market can be expanded by choosing any price belt," Xie Huancheng said.
We chose 9~ 17 yuan Light Wake Coffee, which is a price band between Ruixing and Lucky Coffee. The average price of Ruixing is around 18 yuan, while Lucky Coffee is below 10 yuan, and 9~ 17 yuan is just in the blank price zone between them.
Compared with the two major brands on the market at present, this is an interval with relatively small competitive pressure, which is more conducive to the rapid rise of new brands.
5. To create a brand symbol, coffee must be recognizable.
After determining the positioning, products and price, Xie Huancheng's fifth thought about Qingqing is brand image.
Xie Huancheng considered it for a long time and finally decided to do IP, because coffee is a category with individuality and tonality. With an IP, there will be people close to consumers.
"What do you do with IP? Animal IP has the most successful case in China, and we are making new Chinese light coffee. Panda is the most symbolic attribute of China among animals. "
"But we made an innovation for the panda, and made a square panda with two coffee beans in its eyes, which is very recognizable. To this end, we conducted a special investigation. The highest mapping rate of panda heads, cups, lids and masks in the store can exceed 70%. "
"In the future, we also plan to make a square panda head shape at doorways, bars and other places to be our brand logo." Xie Huancheng said.
Open 500 stores next year.
Think of coffee as a business that can be bigger and stronger.
What's the difference between a tea boss who makes coffee and a coffee start-up brand?
This is the third core question I asked Xie Huancheng. To sum up, his answer focused on three aspects:
First of all, the development path will be faster.
By the end of this year, it is estimated that Qingqing Coffee will have more than 20 stores. The main size of the store is 20~35 square meters, but if there is a good location, it can also be opened in 10 square meters, and there will also be a brand flagship store with 50~ 100 square meters.
In the strategy of opening a store, it will continue the 7-point sweet road, opening a business circle first and then opening a street, first hitting East China and then hitting the whole country.
This year is mainly the stage of testing the profit model of water stores, and now it has achieved initial results. It is estimated that 500 stores will be opened nationwide next year.
Secondly, tea owners will regard coffee as a business that can be bigger and stronger.
As a brand founder who has been deeply involved in the tea industry for more than 20 years, Xie Huancheng can also make decisions more rationally from the perspectives of commerce, efficiency and market, instead of being an ideal coffee shop full of personal obsession.
Third, in the longer term, I believe that the future coffee industry will be more lasting.
In Xie Huancheng's view, perhaps all tea brands will eventually make coffee, and the boundaries between these two categories will become more and more blurred.
Although the coffee business is not as good as tea at present, it is very addictive and can be drunk from the age of 20 to 80. Coffee business is more lasting, so we should look at it from a long-term perspective.
The tea industry, which is separated from coffee by a wall, has just experienced the rising cycle of the industry and ran out of many large chain brands.
Tea brands with deep insight into consumption trends may become a powerful promoter of the rise of the coffee industry after entering the market.
Will Wandian Coffee be born from tea enterprises? We will wait and see.
Why does new tea frequently focus on coffee?
Reporter | Wu Rong Editor | Item
Recently, the book also officially invested in the coffee brand DOC Coffee, holding a 23.5% stake in DOC Coffee 23.5% Tianyancha APP shows that DOC Coffee belongs to Changsha Dangle Coffee Co., Ltd. and was established on 20 19. At present, this brand has 7 stores, all in Changsha, Hunan. DOC name means that the brand wants coffee to become a part of life, that is, "everyday originality".
Like most coffee brands, DOC Coffee not only offers traditional items such as espresso, but also offers many creative specials, including "Don't look at my latte", "Memory of the Arctic Ocean" and "Summer Power Station", etc. The unit price is around 30 yuan.
"Yi Shu Yi Cao" is not the first new tea brand to "invade" coffee.
As early as 20 17, Mi Xue Ice City began to incubate the coffee brand "Lucky Coffee". Last year, it upgraded the brand of Lucky Coffee and accelerated the expansion of its stores. Xicha launched its coffee series at the beginning of 20 19, combining specialty tea with coffee, and then announced on 20021that it would invest strategically in the seesaw of fine coffee brands. Nie Yunchen, the founder of Xicha, personally invested in Kudo Coffee and The Raven Coffee. In addition, there are Naixue, Modern China Tea Shop and CoCo. I've had special coffee drinks before.
By increasing the product line or strategic investment, it is not difficult to understand the intention of new tea brands to join the coffee track.
Coffee and new tea have overlapping consumer groups to some extent. With years of exploration of consumers' tastes and frequent experience in developing new products, tea brands are not bad at borrowing the advantages of the original category and combining it with coffee. Layout of coffee business, tea brands can not only enrich their own product categories, but also broaden consumption scenarios and expand consumer groups in order to obtain new profit growth points.
After experiencing multiple competitions in quality, creativity and marketing, the new tea industry has actually fallen into a stage of slow growth, and the brand has been forced to lay out outside its main business.
Taking Dianthus tenuifolia as an example, in terms of its expansion speed, Dianthus tenuifolia has opened 85 new stores and closed 22 stores in recent 90 days, which is slower than that in 20021year. Previously, it focused on a single category of Xiancao, which also led to its innovation bottleneck. In the past year, it gradually left the field of Xiancao and tried to find possibilities in the fields of fruits.
China Chain Store & Franchise Association's "20021New Tea Research Report" also shows that in 20 17-2020, the income of new tea market in China will increase from 42.2 billion yuan to 83 1 100 million yuan, and it is expected to reach142.8 billion yuan in 2023. However, in the next 2-3 years, the growth rate of new tea will slow down in stages and be adjusted to 10%- 15%.
The growth of coffee market is optimistic. According to yost Sullivan's data, it is estimated that China's coffee market will continue to grow at a compound growth rate of 25.99%, and the market scale is expected to reach 654.38+0806 billion yuan in 2023. The per capita coffee consumption in China will increase from 9 cups per year in 2002/kloc-0 to1cup per year in 2023. Addicted and frequently purchased coffee has become an important category that new tea brands are keen on.
The owner of a boutique coffee shop in Foshan told Interface News that from the perspective of the whole industry, the entry of tea brands is beneficial to the coffee market, because it is slow to educate the coffee market only by independent coffee shops. With the help of capital and tea brands that consumers are familiar with, more consumers can form the habit of drinking coffee.
However, the coffee track is still quite lively at present. In first-tier cities, more and more coffee shops flock to young people, filling all possible business spaces in shopping centers, popular business districts, literary blocks and even office buildings. Not only first-tier cities, but also new first-tier cities like Foshan have gathered more than 3,000 coffee shops, according to the coffee shop owner.
Therefore, various tea brands also hope to find differentiated coffee market segments as much as possible.
The book also invested in grass's DOC Coffee, positioning it as a boutique chain coffee. Although there are not many stores, they only open stores in Changsha. However, relying on the IP image of silly little dinosaur, it is partial to the network celebrity punching shop, covering basic models and coffee creative tastes, and has won many fans. At present, there are nearly 2000 notes about DOC coffee in Little Red Book.
It is not difficult to find that in the past two or three years, regional chain coffee brands like Doc Coffee have sprung up in many parts of the country. Put it with the popular ones. Jpg coffee in Guangzhou, and you will feel that their gameplay is quite similar.
In order to save the rental cost, the store chooses yellow (or a bright color) as the main color of the storefront and packaging, and the seats, gates and neon lights of the store doors are carefully designed for easy release. Optional coffee beans, first meet the basic coffee demand, but also have special coffee to choose from, the price is concentrated between 20-30 yuan; In addition, with the help of good interaction between shop assistants, baristas and guests, it has a high recognition in the local area.
With a certain accumulation and consumer reputation, without investing too much in brand market education expenses, such a coffee brand is undoubtedly the object that everyone is keen to invest in at present. Nie Yunchen, the founder of Xicha, personally invested Kudo Coffee and Rui Wen Rui Coffee, which are similar figures. The coffee of these two regional brands is only opened in Shenzhen, and the quantity is very small. They also have their own explosive products and a stable customer base. During the Shenzhen epidemic in March this year, Kudo Coffee sold more than 700 cups of take-away orders every day.
In addition to regional coffee brands, Xicha is also seeking more possibilities in the high-end boutique coffee market by investing in the seesaw.
Seesaw, 20 12 was founded in Shanghai, specializing in specialty coffee, with a unit price of 30-40 yuan. Its stores are mainly concentrated in first-tier cities, with differentiated positioning and exquisite space design compared with Starbucks. According to the forecast of the research department of CITIC Securities, the market share of high-end fine coffee with a single cup of 40 yuan is 25%-30%, which means that the market space is not saturated, and there is still a chance to enjoy tea. In addition, the tonality of fine coffee is also considered to be helpful for hi-tea to enhance consumers' awareness.
In addition, Lucky Coffee focuses on sinking the coffee market. It's more like the coffee version of "City of Ice and Snow", because you can find the shadow of the latter in store design, products, price and so on.
The main customers are young people in small towns who have lived in big cities and know something about coffee; Stores are concentrated in the vicinity of university town, pedestrian street and shopping mall, and the decoration is mainly red and white, with the words "freshly ground coffee" highlighted on the signboard; After the menu was upgraded at the beginning of the year, its freshly ground coffee increased from 1 1 to 2 1, and the price was concentrated in the low range of 5- 15 yuan; With the franchise model, the number of stores exceeded 500.
After the aesthetic of fine coffee has changed people's consumption patterns and reconsidered coffee culture, the "fourth generation coffee wave" is likely to penetrate into daily life. Coffee is no longer the consumption of niche circles, and coffee brands with different positioning and price segments have found their own living space, which is also a manifestation of the gradual maturity of the Chinese coffee market through market education. Next, tea brands eager to enter the coffee market and make strategic layout outside their main business will never just like tea, books and grass.