MySheen

Why is it difficult to create a "big brand" of Chinese coffee?

Published: 2024-12-22 Author: mysheen
Last Updated: 2024/12/22, The International Coffee Show ended on Sunday at the International Exhibition Center. In the dense fragrance, the visitors were bustling and the scene was very hot. However, the apparent uproar could not hide the embarrassment of the domestic coffee market. after a visit, the reporter found that most of the highly sought-after coffee brands were "outsiders".

The International Coffee Show ended on Sunday at the International Exhibition Center. In the dense fragrance, the visitors were bustling and the scene was very hot. However, the apparent uproar can not hide the embarrassment of the domestic coffee market. after a visit, the reporter found that most of the highly sought-after coffee brands are "outsiders", and China has not yet appeared in the international famous big-brand coffee manufacturers and chain stores. Industry insiders said that due to the lack of coffee culture and the lack of capital investment, China's coffee industry is still in a period of climbing.

Per capita annual consumption is less than five cups.

On the streets of first-tier cities such as Beijing, Shanghai, Guangzhou, Shenzhen, and other first-tier cities in China, coffee shops have never been missing. Some urban white-collar workers have even reached the level of "no coffee". After years of sipping taste, they have developed a keen tongue to distinguish the difference in the concentration and even the origin of each cup of coffee.

But coffee enthusiasts are still in the minority in China. According to Uncle Dou, who has been working in the industry for more than a decade, China's coffee consumption has continued to rise in the past decade, with an annual increase of double digits, but until now, the annual per capita consumption of coffee is only more than four cups, while neighboring Japan and South Korea have reached 340 and 300 cups, and the figures in Europe and the United States and other countries are even more staggering.

"for the Chinese, drinking coffee has not yet become the norm, and people in our circle often joke that we do not have to reach 100 cups. If we each drink 20 cups a year, the price of coffee in the whole world will be three times higher." Uncle Dou told reporters at the scene of the International Coffee Show.

Provide coffee beans for big brands

Although the per capita consumption is limited, multiplied by the huge population base, the scale of China's coffee consumption market is still considerable. In recent years, the coffee cultivation of "Caiyun South" has developed like a raging fire, accounting for more than 95% of China's total coffee production, and China's coffee production also accounts for about 1% of the world's total output. No matter in terms of latitude, soil or climate, the environment in Yunnan is suitable for coffee seeds to take root and germinate. According to statistics, the coffee planting area in this area has reached 1.32 million mu, and the annual output of coffee beans is about 80, 000 tons. As a result, a large number of enterprises have been born.

The quality of Yunnan coffee beans attracts buyers from all over the world. It is understood that both fast consumer goods giant Nestl é and chain coffee shop leader Starbucks buy large quantities of coffee beans from Yunnan for processing and production.

With the money of "internationalization", local coffee producers have not grown up rapidly from stumbling babies. Although there are a large number of enterprises, they all stay in the lower reaches of the industrial chain, and their development is not yet mature. The scope of business is only limited to the supply of raw materials. Many, small, scattered and comprehensive leading enterprises have not emerged, no matter in terms of market share at home and abroad or consumer evaluation. Coffee practitioners in China are still in a state of "aphasia". Up to now, China is not a member of the International Coffee Organization.

"in terms of coffee beans, Yunnan small grains of coffee is still very popular, but there are no brands that people can remember." The head of a company engaged in coffee-related trade told reporters.

The "wandering army" still needs to be honed.

When it comes to coffee shops, most Chinese will think of LOGO-- Starbucks and COSTACOFFEE in the form of "mermaid" and "three coffee beans" that have become popular all over China. In the instant coffee industry, "Nestle" and "Maxwell" have also climbed onto the shelves of Chinese supermarkets. So far, no Chinese coffee shop or coffee brand has won a wide reputation in the mainland.

"We don't have Starbucks, partly because of culture, but also because of capital." Bai Fang, secretary general of the Beijing Coffee Industry Association, told reporters that coffee has a history of about 700 years, but in China did not begin to develop until this century, lack of historical precipitation and cultural heritage, and the atmosphere has not been established. the establishment of chain stores is beset with difficulties in terms of business model and management culture. In terms of commercial operation, the industrialization of coffee is by no means a long way to grow, because the market return is slow, there is also a large amount of capital investment in the early stage, it is very difficult to earn "fast money", coupled with the uncertain future, capital holders are waiting to see.

Whether in the professional field of coffee production or in the case of ordinary consumers, the so-called "big brands of coffee" are recognized as Western visitors with foreign surnames such as Starbucks and Nestle, and there are only a handful of domestic brands. "Shangdao Coffee", which has grown rapidly in franchise stores in the past two years, was the first to flourish in Taiwan, not "indigenous" in the mainland. Although large and small "specialty coffee shops" have been set up in domestic first-tier, second-and third-tier cities, they are all "scattered troops" that have not formed a climate, and the radius of influence is basically no more than a city or even a block.

 
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