Coming early is not as good as it is coincidence. Does Tims, a cheap North American Starbucks, have a show in China?

The Chinese market has a cup of freshly ground coffee with a red cedar flavor.

The Lantern Festival, the last working day of February 2021, is also the second anniversary of the opening of Tim Hortons’ first store in China.

The “Legend Coffee of North America” from Canada announced the completion of a new round of financing, led by Sequoia Capital China Fund , Tencent increased its holdings, Zhong Ding Capital followed suit.

Tims is very strange to most Chinese people.

But for international students who have worked hard in North America, this red maple leaf cup may be an important part of their memories of life in a foreign country.

In Canada, Tims is a household name and can be seen everywhere.

The legendary ice hockey player Tim Horton was founded in 1964, and he crushed 7% of Starbucks with a 63% market share in his country.
Official data shows that among the more than 4,900 stores in the world, there are nearly 4,000 in Canada, and more than 5 million cups of coffee are sold every day.

For example, Tims, a North American bargain coffee giant, is the brand that Luckin Coffee tried to emulate when it was founded.

In the Chinese coffee market, Tims's entry is a bit vigorous.

At least in terms of financing, it is surrounded by reputable and ruthless roles in the industry.
In the second year of entering the Chinese market, Tims received an investment of hundreds of millions from the Internet giant Tencent; at the beginning of this year's 2nd anniversary, it was blessed by the famous Sequoia Capital.

In an interview in February this year, He Bin, CMO of Tims Coffee China, revealed that in 2020, he suffered from the new crown epidemic, but Tims still broke through the original goal and opened 100 out of the 70 previously planned.

At present, Tims has nearly 150 stores in China.
, Covering 10 first-tier cities including Shanghai, Beijing, Hangzhou, and Guangzhou.

From the perspective of opening stores and speeding up, this new player seems to have greater ambitions in the Chinese Nuggets.

It was originally planned to open 1,500 stores within 10 years, but it has now been adjusted to "within a few years".
In December last year, Tims Coffee China CEO Lu Yongchen publicly disclosed that the stores currently opened have achieved overall profitability.

Tims' latest plan is to double the number of existing 100 stores this year in the Shanghai base camp.

By the end of 2021, the total number of domestic stores will be close to 400.
The scale of this store is close to the number of stores in China of the British national coffee COSTA, which has been in China for 15 years and has been benchmarking against Starbucks for a long time.

Although it is not fast compared to Internet roads that are constantly advancing, Tims is currently developing much faster in China compared with only 4,000 stores in Canada for more than 50 years.

If according to the latest plan, the installation of nearly 200 stores in first-tier cities will be completed in 2021, Tims' hard investment is not a small amount.

Although Tims received two rounds of financing in 2 years, they did not disclose the specific amount.
No one knows how strong their wallets are.

A coffee industry person sighed to "Retail Krypton Planet".
According to the goal of opening a store, "Tims spends too much money.
After all, it has not yet become a leading brand in the market.
Coffee shop rents will not receive a big discount, leading to large-scale The cost of expanding the store will be very high.
"

If you dare to spend a lot of money, Tims must be positive enough to predict the outbreak of the Chinese coffee market.

01.
Tims: It’s better to come early than to come by coincidence

01.
Tims: It’s better to come early than to come by coincidence

There are many "foreign coffee brands" that come to the Chinese market for gold mining.
The big brother Starbucks, who has more than 20 years of deep cultivation experience, is the most popular and influential.
COSTA has been biting Starbucks "closely".
In 2018, it shouted 2500 stores slogans, but now it is less than one-fifth.
Last year, it was shut down and laid off during the epidemic last year.
In the eyes of Chinese consumers, COSTA, whose ambitions have shrunk, is already a bit cheap and old.

The Australian giant Koroya entered China in 2015 and has been unknown so far.
It has more than 1,000 stores in Japan and is known as "the only Japanese national cafe that can surpass Star Dad" Doutor.
It opened in Shanghai Wujiang Road in 2018 The first store is gone.

In addition, there is a cheap coffee chain from the United States, Donuts, famous for its doughnuts.
They put Starbucks under pressure in China, but their development in China is not satisfactory.
In 2015, they also set out the goal of opening 1,400 stores in China, but now it seems to be far away.
.
.

At the end of last year, McDonald’s specialty coffee brand McCafé announced that it would invest 2.
5 billion yuan in the next three years to accelerate its deployment in the mainland coffee market.
Relying on the development of McDonald’s China, it is estimated that there will be more than 4,000 McDonald’s coffee shops in 2023.

The "2017-2021 China Coffee Industry Investment Analysis and Outlook Forecast Report" shows that China's coffee consumption is growing at an annual rate of 15%-20%, while the average growth rate of coffee consumption in the global market is only 2%.

From the perspective of the changes in the consumer population, with the superposition and continuous increase of the demographic dividend of the new generation, the coffee industry will enter a rapid development trend in the next five years, and the current low base of coffee consumption in China shows that the cakes in this market are very good.
Big,

China is the world's largest coffee chain brand Starbucks, the world's second largest market.
Starbucks China has revealed that it plans to open 600 new stores in China in fiscal year 2021 (as of September 30, 2021), and will enter 230 cities in China before the end of fiscal year 2022, with a total of 6,000 stores.

The growth temptation of China's coffee market looks beautiful, but there are also many foreign brands that have broken down.

But coming early is not as good as coming by coincidence, the new player Tims's card slot is quite fast.

In the past few years, peers have done enough local market education, and the freshly ground coffee market is getting hot.
At the same time, after the popularization of new business infrastructure on the Internet, the latecomer Tims can just use technology to use new methods to improve expansion efficiency.
And speed up harvesting.

Tims is very skilled in online marketing

Tims is almost seamless to catch up with this wave of digital dividends.
Especially with Tencent's big brother, Tims can get great digital assistance in marketing scenarios, enhance member loyalty and help improve business decision-making, and bring great value to operations and growth.

Of course, Tims, which has no traditional playstyle in China, is also providing Tencent with a future sample of the digital transformation of physical retail.

According to a disclosure from Tencent Investment, the Tims WeChat applet platform has accumulated nearly 3 million members so far, and more than 80% of sales come from members, and the online and offline ratio is close to 5:5.
In the future, Tims will transform consumers into its own "private domain traffic" from localized innovation, digital infrastructure and brand accumulation.

Based on consumer insights, more derivative products and cross-border marketing may be launched, including the opening of cross-border coffee themed stores.
This year Tims Coffee will also try to enter the coffee retail field.
Hanger Coffee has been launched on the Tmall flagship store.
test.

In terms of store types, there are currently three main types of Tims.
In addition to standard stores, it focuses more on self-pickup, take-out and delivery, and small quick store Tims Go, which is similar to Ruixing’s large-scale store layout, but focuses more on testing innovative products.
Tims Lab is consistent with the number of popular Chinese tea brands.
Last year, Tims also opened an e-sports scene theme store with Tencent.

In the Chinese market where the mobile Internet and the consumer economy are booming, Tims may not have to step on more pits and enjoy the digital dividend.
There are plenty of ready-made examples for reference.

02.
Does Tims have a play in China?

02.
Does Tims have a play in China?

It is said that Tims regards China as its second largest market in the future.
According to its current total number of stores and future store opening plans, the Canadian market will account for 60%, while China will exceed 20%.

There is still plenty of potential for development in the cheap freshly ground coffee market in China.

Let's put it this way, Ruixing is still working hard to expand after a series of thunderstorms in 2020.
By the end of 2020, there were nearly 4,800 Luckin Coffee stores, and the sales of ready-made beverages exceeded 300 million cups.

In the Chinese market, Tims has extended the image of being “friendly to the people” in the Canadian market, focusing on popularization, high quality, and high cost performance.
The price range is between RMB 16-30 and the target users are the new middle class.

From the price point of view, Tims is lower than Starbucks compared to the civilian version: the price range of coffee + warm food is between 20 yuan and 30 yuan, which is similar to the discounted price of Ruixing Coffee.

At the same time, Tims is more expensive than McDonald’s McDonald’s coffee, KFC K coffee, Paike coffee similar to FamilyMart’s convenience store, and even tea brand coffee product lines.

Tims's theme store and flagship store in China are bright and modern

From the decoration of the store, Tims bid farewell to the cozy house on the roadside in the local market, and transformed into a tall and bright modern coffee shop, a self-pickup store, a mix of theme stores, and flagship stores.

It can be seen that Tims' card slot in China is to find a good environment, professionalism and brand balance between Starbucks and fast food convenience store coffee.

If you want to discuss the competitive situation of Tims in the Chinese market, the Beijing Century Golden Resources Shopping Mall is a very condensed display.

There is a Tims go store on the first floor of this super large shopping mall in the west of Beijing.
There is a Tims go store of about 50-60 square meters, which is a self-pickup store with 3 or 4 staff.
The outside of the store is separated by a plastic curtain.
-8 outdoor seats.
On the outer wall of the store, the Tims logo in the bright red maple leaf is particularly conspicuous.

In this Tims radius of 100 meters, within a few minutes of walking, there are nearly 10 catering counterparts in all directions: including three Starbucks stores; a Dunn’ Dole coffee; a McDonald’s with a McDonald’s coffee shop; and a KFC selling K coffee.
Just across the aisle, there is Coco milk tea, and diagonally across it is Hey Tea, which is popular among young consumers.
.
.

Over the past 40 years, China's coffee market has undergone several changes, and the real rapid rise and growth trend have been extremely obvious in the last five years.
Driven by multi-level consumer demand, the coffee market has become more diversified.
With the changes in infrastructure, the coffee industry is also undergoing restructuring, which is good for new brands.

An indication that the market is getting hotter and hotter is that more and more players are coming in, the small green cup (Starbucks), the small red cup (COSTA and TIms), the small yellow cup (Mai coffee), and the small blue cup (Luckin) .
.
.
the color of the coffee cup in the consumer's hand is getting richer.

After joining China for two years, Tims has a good start, but in terms of brand, service, user mind and other aspects, it is necessary to consolidate more sufficient reasons for consumers to take a single spoonful of drinks from the weak water of the coffee world.

Source: Retail Krypton Planet

Note: All pictures in the article are reprinted on the Internet, and infringement will be deleted!

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