In 2021, the scale of China’s coffee market is about 381.7 billion yuan, and the industry is expected to maintain a growth rate of 27.2% From AI media consulting

The following is the In 2021, the scale of China’s coffee market is about 381.7 billion yuan, and the industry is expected to maintain a growth rate of 27.2% From AI media consulting recommended by recordtrend.com. And this article belongs to the classification: Chinese economy.

Would you like to have a cup of coffee while shopping for sportswear? Recently, Li Ning’s cross-border opening of “Ning coffee” has aroused the curiosity of the public. Industry analysts say that coffee is only an auxiliary tool for Li Ning, and there is still a long way to go to compete with professional coffee brands. Besides Li Ning, traditional industry giants such as PetroChina, Sinopec and China post are also eyeing the coffee track. Why do traditional industries want a share of coffee?

Why did Li Ning open a coffee shop without doing his job?

Previously, tianyancha app showed that Li Ning Sports (Shanghai) Co., Ltd. applied to register the trademark of “Ning coffee”, which is internationally classified as catering and accommodation. The cross-border sale of coffee by footwear and clothing giants has aroused public curiosity and concern.

Subsequently, Li Ning responded to Zhongxin Jingwei that the company pays attention to the consumer purchase experience of retail terminals and hopes to improve the comfort and experience of customers during shopping by optimizing in store services. Providing coffee service in the store will be an innovative attempt of Li Ning for the retail terminal consumption experience.

Earlier, some bloggers punched in the freshly ground coffee in Li Ning’s exclusive store on social media, saying that they could drink a cup free of charge after consumption. After the official announcement of “Ning coffee”, when Li Ning publicized his flagship store in Xiamen on the official microblog, the figure of “Ning coffee” can be seen in the picture, and some netizens have printed pictures saying they have drunk it.

The clerk of Li Ning’s flagship store in Xiamen Zhonghua city told the media that “coffee drinking is not open to the public at present. Customers who come to the store can get a free drink after purchasing 499 yuan of goods”. It is reported that the stores providing coffee business basically belong to “shopping center stores” or large flagship stores, while most of the smaller stores currently do not have this service.

Screenshot of Li Ning’s official microblog

It can be inferred that “Ning coffee” may appear in the form of occupying part of Li Ning’s offline stores in the future. According to the company’s annual report, by the end of 2021, Li Ning had 5905 franchised dealers and 1232 direct retailers, a total of 7137. In other words, Li Ning may have more than 7000 offline stores, more than 5000 in Starbucks and 6000 in Ruixing.

Li Ning said in the financial report that during the year, the company continued to optimize channel construction and layout, focused on shopping center stores, continued to promote the landing of flagship stores and other high-efficiency stores, continued to promote the optimization of store structure, and accelerated the processing of loss making, inefficient and small area stores.

From the perspective of its main business in recent years, Li Ning can be regarded as a “layman” in the coffee field. Li Ning’s total revenue in 2021 was RMB 22.572 billion, of which clothing business contributed more than half of the revenue, followed by footwear, accounting for 42.1% of the revenue, while equipment and accessories accounted for 5.5%. There was no catering industry in the business classification.

Netizens have different opinions on the news that Li Ning opened a coffee shop. Some people expressed support for Li Ning’s crossover. If the coffee tastes good, you can try it; There are also views that this cross-border model is difficult to make profits.

Zhu danpeng, a food industry analyst, told China Singapore Jingwei that coffee is only an auxiliary tool for Li Ning to achieve the function of increasing stickiness, which is a measure to meet and close to the needs of the new generation of consumers. Coffee is not Li Ning’s main business and has little impact on its main business. From the perspective of the industry, the current coffee track is a node with high-speed growth and capacity expansion. It is in the bonus period. In the future, more brands will enter and there will be more differentiated products.

Linyue, chief analyst of Lingyan consulting management, said that most of Li Ning’s stores are just a foundation. Coffee is different from shoes and clothing. Consumers who want to buy clothes, shoes and hats usually don’t want to enjoy a cup of coffee in the store, and coffee will occupy the experience space of the store.

Chain giants are eyeing the coffee market

Li Ning is not the first company to sell coffee across borders. In fact, the track of crossover coffee is very busy.

According to media reports, in February, the first post office coffee under China Post landed in Xiamen international trade building. The cheapest cup of coffee was 22 yuan. In addition, the coffee shop also sells tea, desserts and around the post office. It is understood that China Post had previously sold milk tea.

In February, 2021, Tongrentang opened a coffee shop called “Zhima health” and the concept of “health coffee” attracted a large number of young people. According to media reports in 2021, from the perspective of store benefits, coffee drinks with the highest sales volume did not bring large profits, but as a means of drainage, health products and sub-health diagnosis and treatment really brought profits. Compared with Starbucks and tims coffee in the same area, the sales volume of Tongrentang coffee still lags far behind.

“Two barrels of oil” PetroChina and Sinopec have also set foot in the coffee field. In 2018, PetroChina began to set up freshly ground coffee in its Kunlun hospitality convenience store. It is reported that at present, PetroChina has more than 120 Kunlun hospitality coffee stores.

In February, 2021, the joint venture company established by Sinopec and Lian coffee launched its own brand “Yijie coffee”, which mainly sells coffee drinks and light foods, and consumers can also choose the “drop off” service. According to the official official account of easyJet coffee, as of November 2021, the brand has 54 stores in Beijing, Suzhou and other places, mainly located in Sinopec gas stations. However, this figure is still far from the plan of “opening 3000 stores in three years”.

Why do traditional giants prefer coffee? In this regard, zhaochilei, director of Qingtong capital investment, told the media that one of the reasons for traditional brands to move towards fast consumption is to find the second growth curve. Traditional brands also face some problems, such as fierce competition, incremental to the ceiling, and compressed profit space, so they need to expand their own channels. In addition, it is the spillover of the brand’s own capabilities, such as supply chain channels, points or brand recognition. We will also pay for the expansion of new categories.

According to the prediction of AI media, China’s coffee market has entered a stage of rapid development. In 2021, the scale of China’s coffee market will be about 381.7 billion yuan. It is expected that the industry will maintain a growth rate of 27.2%. In 2025, the scale of China’s coffee market will reach 1 trillion yuan.

As non professional players, will the entry of traditional giants squeeze the living space of Astro buck and Ruixing? In this regard, Zhu danpeng analyzed that, on the whole, there are still opportunities to sell coffee across borders, but compared with professional coffee brands, the opportunities are not big.

“It can be seen from the cross-border of giants such as Li Ning, China Post and China petroleum that their brand positioning is different from that of professional coffee makers. They have advantages such as network channel resources, store costs and traffic. However, they need to worry about whether they can really polish their products without inborn coffee genes. For example, the scene and brand tone may become a relative disadvantage of traditional brands in the competition.”

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