The revelation of the decline of Shangdao Coffee: neglecting the brand survival core of "management" leads to failure

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There is a saying that successful coffee will raise the level of pressure on customers. Failure of coffee, can only pretend to force themselves silently.

And the biggest failure should be those that will make consumers avoid it, thinking that the consumption here will lower the price and low into hillbilly.

The original positioning of high-end, pre-emptive strike, seize the exclusive market, the prospect is good. How to expect to open high and walk low, lack of stamina, blindly join in expansion, quality decline. Internal and external troubles, the brand image plummeted. A few years, such a huge gap, in addition to their own death of Shangdao coffee may also be no one.

The decline of coffee on the island is not only a wake-up call for brands, but also a warning for diners.

Once upon a time, Shangdao Coffee was a favorite place for urban petty bourgeoisie and business people to spend.

After all, at the end of the last century, in the mainland, which had just enjoyed the fruits of reform and opening up and entered the rapid economic development, the popularity of "coffee" was not high, so the coffee shop also brought a sense of freshness and luxury.

Shangdao Coffee entered the vast mainland market in 1997, much earlier than Starbucks or COSTA. Shangdao Coffee, which lacks competitors in the same industry, is dominant and has seized a huge market at the best time.

It can be said that in the 1990s, many people entered the cafe for the first time and stepped into the threshold of coffee on the island. Therefore, in a short period of seven years, relying on the expansion of franchise stores, the number of stores with coffee signs on the island has reached more than 3000 on the mainland.

Unfortunately, such brilliant achievements did not last.

To investigate the reasons, the three major "fatal injuries" have to be said:

1. The joining mode is simple and rough, and there is no late service.

2. The management and control system is not standard, and the franchisees go their own way.

3. Shareholder infighting and lack of long-term strategy

The above three "internal injuries" have depleted the vitality of the brand, and Shangdao Coffee, which has lost its reputation, how to cope with the severe challenges from external competitors in the same industry?

Internal injury one: just charge the franchise fee, lack of service support

Shangdao Coffee's franchise model is very simple, only charge the initial franchise fee and late renewal fee. Driven by the interests of short-term "franchise fees", shareholders wantonly expand the number of franchise stores in order to obtain funds quickly.

In this mode, Shangdao Coffee basically let it go after charging the joining fee, and adopted the stocking system. In that case, there is neither research and guidance on the location of the store, no support for medium-term sales, or even post-marketing data analysis, except for a gold-lettered signboard of Shangdao coffee, franchisees who lack entrepreneurial experience can only fumble forward on their own.

For example, for many entrepreneurs who want to open a coffee shop, the first consideration is to have their own coffee shop with "characteristics"-to have a cultural theme and to work hard on the environment, dishes, music, decoration, and so on. Indeed, these elements are crucial-doing well will make the consumer experience more comfortable and sticky; points will not be deducted for no merit or fault; but if you do badly, if you lose popularity seriously, you will smash the signboard and close the shop.

But, you know, they are all add-ons. Many people seem to forget that in a coffee shop, the most important thing is to make coffee. You can't even make coffee? Take the zero and don't give it away. As a brand, Shangdao Coffee has certainly accumulated a lot of experience, but if this experience is not shared with the franchisee, the entrepreneur has no one to lead, how many detours do you have to walk through before you can embark on a broad road?

Liu Qiangdong, CEO of JD.com Group, said: "within five years, thousands of coffee on the island across the country do not have to choose stores or training, but only charge a franchise fee. This business model is against the interests of consumers. "

Internal injury II: lack of strict and unified brand control standards

Shangdao Coffee is getting bigger and stronger because it is ahead of its competitors to enter the mainland market.

However, there are all kinds of birds in the forest, and the franchisees with different abilities are now on the same "boat" called Shangdao Coffee. As the brand of "captain", it is time to screen the physique of "crew" and train their "navigation skills".

Only when we move in step and move in one way can we ensure that everyone's strength can be used in one place and that we will not go astray. If there is not a set of standard and strict joining control system to achieve "standardization" and "unification", then excessive free play of branches and leaves will only waste the nutrients of this big tree of the brand.

For example, Shangdao Coffee brand is located in high-end business talks, while some franchisees see the localization of other industries, they are eager to try. A brand, the strategy of localization needs to be carefully evaluated and formulated, and a little carelessness will lose thousands of miles.

However, the Shangdao company did not pay attention to such a "change", or they did not intend to "bother" to take care of it. As a result, Shangdao coffee is slowly deteriorating-in some shops, the coffee is of high quality and the environment is comfortable, while others are smoky and noisy. The original "high-end business meeting venue" has become a place for "local cooking" and "smoking and playing cards". Even some stores creatively provide mahjong tables for guests to rub hemp.

As the saying goes, "A piece of rat shit spoils a pot of soup". And without jurisdiction and restraint, how many mouse droppings will appear in brands that are allowed to develop freely by franchisees?

After all, for franchisees, the Shangdao coffee brand is just their "thigh"-a sign to attract consumers. Therefore, franchisees only care about their own profits, as to maintain brand reputation need to invest a lot of energy to control coffee quality, decoration style, service level, that is not in the scope of their concern.

The franchisee sweeps the snow in front of the door, which actually damages the overall image of the brand on which they rely for survival. When the brand image declines, it will naturally bring the loss of benefits. But Shangdao Coffee shareholders are busy with their own calculations and have no time to train and coach some franchisees.

Franchise needs a degree of control, corporate governance, organizational structure and hardware, fine management of stores to keep up with. Shangdao Coffee has always been eating the old brand, there is no clear brand planning and repositioning, showing a dead end situation.

Internal injury 3: shareholder infighting, hollowing out the vitality of the brand

Perhaps because it grew up in a "time of peace", Shangdao Coffee did not produce a sense of hardship. Qi Ming, founder of Pulan Coffee Institute, once pointed out that Shangdao Coffee relies too much on the successful early joining model. Due to the lack of vigilant strategic thinking, the company's shareholders did not make concerted efforts to prepare for the challenges of their competitors. On the contrary, they made their own calculations early for a bigger share of the pie, which directly led to the lack of centripetal force and cohesion of the franchisees, making them a piece of sand.

In addition, shareholders in their own business areas, with the help of the experience of operating Shangdao coffee brand to create new brands and upgrade the franchise model. Sub-brands that focus on fighting and dismantling their own homes-Cross-Strait Coffee, Dio Coffee, Osomilo Coffee, French Shepherd Steak Coffee and UBC Coffee-compete directly for the same consumer group and market with Shangdao Coffee in the same field.

Xu Meng, secretary-general of the International Food Committee of the China Cuisine Association, once told the media that shareholders have created their own coffee brands, which can be understood to mean that they are no longer optimistic about Shangdao Coffee.

Ignoring the core of the survival of the "management" brand, Shangdao Coffee will sooner or later clip itself to death because of "short-sightedness" and "dirty mess".