85 degrees C success story: high quality and low price is the real magic weapon.

The name of the 85C store comes from the fact that it is said that the currently brewed coffee tastes best when it is brewed to 85 degrees. However, 85C is not just about selling coffee. Cakes and bread are the other two pillars of 85C. These are the three most competitive commodities in the market. 85C can achieve a market capitalization of tens of billions of dollars, and the scale is still growing.

In fact, the secret of the success of 85C is "high quality and low price", which is the most commonplace word, but the big article behind it is obviously the real magic weapon of 85C.

Let's start with quality.

In 2003, Wu Zhengxue, founder of 85C, was drinking afternoon tea at a five-star hotel in Taiwan. At that time, he had an idea of what it would be like to bring such taste and enjoyment to the general public. So Wu Zhengxue went to the chef in the Asia-Pacific Club in Taiwan at that time to talk about starting a business. After many sincere talks, 85C, standing on the starting line, had its first sign "five-star flavor."

85C started with cake as the main hit, the reason is very simple: "most consumers in China do not have a good understanding of the quality of coffee, but they can eat it in one bite as to whether the cake is delicious or not." it is obviously unwise to compete with foreign brands in the Taiwan and mainland markets.

After an instant hit, Wu Zhengxue continued to carry forward the "five-star taste" and successively poached more than 20 "gold chefs" from five-star hotels to create pastries that can not only achieve high-quality taste, but also put into standardized production. every month, 85C has more than 20 new products on the market, becoming one of the enterprises with the highest "R & D investment" in the industry.

Wu Zhengxue also personally grasped the supply of ingredients. He personally went to Central and South America to select coffee beans and directly introduced coffee beans used in five-star hotels in batches. Also following borrowlism were French top Valrhona chocolates. According to Wu Zhengxue's words, "in fact, good ingredients, just a little bit will be fine." The point is how to bring out a five-star flavor with a little bit.

Besides, it's cheap.

In the same downtown area, with the quality and taste of competitors, and the same labor costs, 85C sells only half of competitors or even 1x3, and can achieve the high profit level of the industry. 85C depends on volume.

Wu Zhengxue, who specializes in Starbucks, runs 85C with the idea that it is best for customers to buy it in a few seconds, rather than sitting down and relaxing for an hour or two like Starbucks. Therefore, a large number of 85C storefronts are used for freezers, bakeries and other production supplies, street-facing doors are all attractive snacks, while tables and chairs are only a few as embellishments, and the focus of staff training is efficiency in addition to service.

In the newly opened store, 85C on the one hand vigorously promote "trial price", on the other hand, let staff interns come to the store to buy coffee to boost popularity, as soon as the word of mouth of high quality and low price spreads, customers naturally flow constantly, and only by running a quantity, can the waste of pastry during the shelf life of one or two days be reduced to a minimum, and the cost advantage of scale can be reflected.

When 85C entered the Chinese mainland market, the average turnover was nearly three times that of Dior Coffee, while the net profit margin was at least five percentage points higher than that of the same industry. At the end of 2010, 85C was successfully listed in Taiwan, and its market capitalization exceeded 40 billion Taiwan dollars (10 billion yuan) on the first day of trading.

Comments:

The 85C business model is undoubtedly successful.

The coffee shop market has always been considered to be a difficult industry to enter in China, and the bakery market in cake shops has long been saturated. 85C successfully merges the two formats into one, attracting young people with a new image.

In addition, although there is no shortage of foreign brands of high-quality coffee and bread in the market, the price positioning of these brands is also set in the middle and high-end market, and few people are willing to do the mid-and low-end products, because people take it for granted that the profits of the middle and high-end prices are not high, and if the price is low, it will definitely lose money. But Wu Zhengxue did the opposite. The first store he opened in Taiwan proved that this model was feasible, and quickly extended the model to markets all over Taiwan and many other countries and regions.

It is worth mentioning that Wu Zhengxue's education is average, and the only thing that is better is mathematics, and he has started a business many times and experienced many failures, but these have also created Wu Zhengxue's sensitive talent for business and rich experience in doing business. this precious wealth is finally reflected in 85C.