Influx into the coffee market

The reporter of Beijing business daily searched “Beijing Li Ning coffee” and “Beijing Ning coffee” on the social platform. There was no relevant content. The only one was that consumers exposed Li Ning’s brand Li-Ning 1990 on the social platform and sent freshly ground coffee with Li-Ning logo when the world’s first store opened in Beijing. This adds a bit of mystery to Li Ning’s registered coffee brand. According to the China Trademark network, Li Ning Sports (Shanghai) Co., Ltd. previously applied for the registration of the trademark “Ning coffee”, which is internationally classified as catering and accommodation.

Li Ning’s staff also confirmed to the Beijing Business Daily that Li Ning has the intention to layout coffee, but has not received specific notice. For the next development plan of Nanjing coffee, Li Ning (China) Sporting Goods Co., Ltd. was contacted, but no reply had been received as of press time.

Li Ning is not the first person to eat crabs. The reporter of Beijing Business Daily found that in February this year, the first “post office coffee” under China’s postal official announced landed in Xiamen, selling coffee, tea and other products, and will continue to be distributed in Beijing, Shanghai and other places this year. In 2020, the time-honored Tongrentang opened a cafe in Beijing to attract attention with the concept of “medicinal materials”. Earlier, Sinopec, which has 30000 gas stations, launched the coffee brand “Yijie coffee”, officially entered the coffee market, and then launched bottled instant coffee products to expand its coffee territory.

Wang Zhendong, chairman of Shanghai Feiyue Investment Management Co., Ltd., pointed out that most cross-border coffee brands have certain advantages such as scale and capital, and the coffee market is a hot spot at present, which can be regarded as following the trend.

Insiders further pointed out that from the current layout and development of several major domestic coffee brands, the competition in the coffee market is becoming increasingly fierce, the shuffle speed of the coffee market is accelerating, and a new competition in the coffee market has begun.

Search business increment

After the news of “Li Ning selling coffee” came out, what triggered heated discussion in the industry was the volume of “Li Ning coffee”. Some people believe that Li Ning has more than 7000 stores. Once all the stores are opened, its scale will exceed Starbucks and Ruixing coffee. Although Li Ning’s specific plan for the coffee business has not been determined yet, it is undeniable that Li Ning has great ambition for the coffee market, and Li Ning’s favor for the coffee market seems to follow.

Lai Yang, chief expert of the research base of Beijing International Trade Center, said that generally speaking, enterprises crossing into new fields will choose to cooperate with third parties or operate independently. It is not difficult to see from Li Ning’s layout in recent years that the brand pays more attention to the impact of corporate culture on consumers. Therefore, although Li Ning’s cooperation with third-party brands can reduce costs and better open the current situation, it can not spread corporate culture and values to consumers on a large scale. At present, Li Ning will test the water by using existing stores and other resources. If the business model is established, it will not rule out the possibility of independent operation in the future.

According to the official microblog of Nestle coffee in China, in March this year, Li Ning designed and cooperated with Nestle coffee to launch T-shirts, water cups and limited coffee gift boxes. In early April, Li Ning design and Nestle coffee also opened a flash store offline, landing in Chongqing, Nanjing, Xi’an and other cities. The joint signing has also aroused a lot of heat. The microblog app shows that as of yesterday, the topics # related to the joint signing have been prepared, and the reading volume of super young # has exceeded 6.86 million.

AI media consulting a set of data may reveal the core demands of brand concentration into the coffee market. Data show that more than 70% of Chinese coffee consumers are aged 22-40, and 60% are female users.

Insiders stressed that enterprises that seem to be out of touch with coffee, but behind them are the vision and expectation of the young market. Moreover, in the market environment with serious internal volume in all walks of life, it is also a smart way for enterprises to deeply cultivate existing consumers by expanding different industry projects.

Less risk in store

There is no shortage of entrants in the coffee track. From independent cafes to chain coffee brands, to new tea and non meal enterprises, they have set foot in the coffee field, and the competition in the coffee market is becoming more and more fierce.

Coffee practitioners admitted that the industrial concentration of the coffee market is relatively high, and the domestic coffee market space is limited. For incoming brands, it is necessary to make the brand have strong continuous innovation and work hard on brand differentiation. In addition, continuous innovation in digitization, products and supply chain, and the establishment of an effective training and quality control system are the basis of success.

According to the data of AI media consulting, the scale of China’s coffee market is about 381.7 billion yuan in 2021. The dietary concept of Chinese consumers has changed, and coffee is gradually popularized in the lives of Chinese consumers. China’s coffee market has entered a stage of rapid development. It is expected that the industry will maintain a growth rate of 27.2%, and the scale of China’s coffee market will reach 100 billion yuan in 2025.

“Now, many offline coffee brands are also targeting retail products. In the future, Li Ning should layout coffee products on e-commerce platforms, takeout platforms and its own channels, and these channels may also include Li Ning’s sporting goods.” Wang Zhendong speculated on the future vision of Ning coffee.

“Many cross-border players do not have catering genes, and there are many examples of early withdrawal from the competition. Therefore, in the face of fierce competition in the coffee market, cross-border brands also need to make use of their existing advantages to strengthen product quality and form differentiation, which is also a challenge that foreign capital will face in the layout of the coffee market.” Wang Zhendong pointed out that there is a big thinking gap between the layout of retail and catering markets. For enterprises, if they open stores alone, they will face challenges such as operation management, establishment of supply chain system and business integration, perhaps in the store