The hotly contested coffee market
Last Update: 2020-06-20
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At present, Chinese mainland, in addition to the super-first-tier cities, other cities have low coffee consumption frequencyAccording to the Eurothink Group, coffee consumption in the United States in 2017 was 1.57 million tons, Japan's coffee consumption was 465,000 tons, while China's coffee consumption was only 219,000 tons, compared with 1.4 billion people, it is clear that China is not a country with coffee consumption habits, coffee consumption market is still small! At the same time, it also marks the huge growth potential of China's coffee consumption marketAccording to USDA (USDA), China's domestic coffee consumption has been growing in recent years, reaching 219,000 tons of coffee in 2017, CAGR reaching 35%, and the coffee market in China is expandingAccording to the London International Coffee Organization forecast that china's coffee industry will reach 300 billion yuan by 2020In contrast, the coffee market in Europe and the United States has a different picture!According to the International Coffee Organization, coffee consumption in developed countries and regions, represented by the European Union, the United States and Japan, slowed or stagnated in 2013-2017, while coffee consumption declined in developed countries, represented by Switzerland and Norway, coffee category: instant-based, now grinding proportion of smallas of the end of 2018, domestic coffee consumption product structure, instant coffee accounted for 84%, the proportion of now milled coffee 16%In contrast, the global market coffee consumption structure: instant coffee accounted for 13%, now milled coffee accounted for 87%According to the relevant data, the market share of instant coffee is slowly declining year by year, and the instant coffee market is highly concentrated: Nestle occupies about 70% of the market, followed by Maxwell, is now an oligopoly state, to new entrants have few opportunities, so instant coffee is not the focus of future market developmentin contrast, the current coffee will be the main incremental opportunity in the future coffee consumption market:1) from the share point of view, the current market shareof domestic current milled coffee is only 16%, compared with the global market share of about 87% has a clear gap and room to rise; 3) at the same time to Ruiyu coffee as the representative of the new retail coffee broke the space limit of the current milled coffee consumption, takeaway coffee expansion customer base to the store around 2 km, the service customer radius significantly expanded, and its cost relative to the traditional offline coffee shop significantly reduced, and can ensure the good taste of the current ground coffee, with "cost-effective", is booming, is expected to bring a good incremental opportunity for the domestic coffee marketbelow will focus on the "wind and clouds" of the current milled coffee market!2, the fierce competition in the current coffee market1The market is highly fragmented by the end of 2018, the number of domestic coffee shops exceeded 100,000, while the current domestic largest coffee brand "Starbucks" only 3521 stores, the number of stores accounted for only 3.5%, we can see how the market is scattered! diversified business model, fierce competition with China's residents' economic level and Western-style catering, life / business penetration, domestic coffee consumption to maintain rapid growth In June 2018, the PYS think tank estimated that the size of China's coffee catering service segment was about 110 billion According to Euromonitor data, China's coffee retail sales in 2003-2017 from 1.55 billion yuan to 6.98 billion yuan, CAGR 11.34% the current domestic grinding coffee business model mainly includes: 1) Starbucks, Costa-led prices mainly in 30 yuan brand coffee shops, high-quality ingredients and production processes to attract high-end consumers ; And 7-11, the whole family customers and other convenience store coffee as the representative, the price of 20 yuan or less of non-independent coffee brands, for the general public consumption in fast food restaurants and convenience stores to provide the nearest coffee supply; 3) to Ruiyu coffee-based, the price between 20 yuan-30 yuan of professional coffee (in the larger preferential force to achieve single-digit unit price), in the provision of preferred product ingredients, high-quality coffee technology at the same time to meet the high school low three-end consumer coffee demand several brands of coffee pricecomparison 3 Starbucks, Ruixuan, the family business model comparison Starbucks as the world's traditional coffee chain leader, the first third space model, for which Starbucks stores are very demanding, most of the location of prime commercial locations, while creating a rich scene, luxury coffee sold to customers with strong purchasing power in addition, Starbucks precision customer positioning, to achieve strong replication of the shop, in the procurement adhere to ethical procurement, the establishment of a number of coffee grower service centers around the world to ensure the stable supply of high-quality raw materials upstream of the coffee industry, the interests of the community of corporate value culture, focus on staff training and career development but the shortcomings of this model: because of the high unit price of products, resulting in the target consumer groups are not large enough, and because of offline operations mainly, store costs and staff costs accounted for a relatively large, in order to achieve the effect of the flat is often limited to cbd and other high-traffic areas in response to competition from new retail businesses such as Ruiyu Coffee, in August 2018, Starbucks and Alibaba announced a comprehensive strategic partnership for new retail, Starbucks will be holding hands with hungry to launch on-line delivery services But at present only some Starbucks stores support distribution, and the location is not conducive to extensive distribution, distribution fees are relatively expensive by contrast, Ruiyu Coffee's original coffee new retail model, open edgdown, effectively solve the current grinding coffee "difficult to buy", "expensive" two painful points, sold 90 million cups of coffee in 2018, as of the end of the first quarter of 2019, the number of stores 2,370, is expected to add 2,500 stores in 2019 Ruixuan's stores are mainly selected in the vicinity of the consumption scene, and not necessarily the location of heavy traffic, online and offline combined operation model, coffee from heavy assets to relatively light assets of the Internet business While changing the consumption pattern of coffee, we can realize the improvement of shop floor efficiency, reduce marginal cost, and further break through the scene boundary, greatly expand the service radius, and double the transaction consumers can easily and easily buy coffee through The Small Program, APP and American Group Platform, and then go to the store to pick up or receive a good coffee within an average of 17 minutes through the distribution service of Shunfeng and American Group cost-effective Ruiyu coffee and Starbucks are using high-quality Arabica coffee beans to make coffee, the quality of the product is not much different, but Starbucks coffee unit price than Ruiyu coffee is 7-8 yuan higher, because of the greater favorable benefits of Ruiyu coffee, the actual price gap is greater convenience store coffee, which has a natural advantage and also has the advantage of new retail coffee, may be the biggest rival to the "Ruiyu" take the whole family coffee as an example, in the existing line of a large number of mature and high-traffic stores, as early as 2015, customers coffee has been stationed on the takeaway platform; and online, according to coffee finance network data, with more than 2000 convenience stores laid online, the whole family coffee has doubled sales for four consecutive years, sales in 2018 40 million cups, customers coffee has grown into the Chinese mainland coffee market accounted for the highest share of the chain brand Taking advantage of the rising consumption of The Chinese coffee market, the latest goal is to sell 100 million cups by 2019 the "conclusion" the current grinding coffee market competition has been white hot, in addition to the above several mainstream business models, there are self-service coffee machine (coffee coffee), coffee light meal (coffee wing) and other models Coffee's new retail model with the advantages of "online plus offline" and "cost-effective" is expected to become one of the mainstream models of the future, with Starbucks as the representative of the traditional model a higher and lower! Source: Sina Financial
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