Japanese media: coffee culture takes root in 100000 cafes in China contains great business opportunities

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Japanese media say coffee culture is taking root in China. It is reported that the number of cafes in China has reached 100000 and is still accelerating its opening. In addition, the bread and cake experience provided with drinks is also very popular. How to seize the business opportunities brought by the new food culture will become a topic for enterprises.

The average price of an American cup of coffee in China is 24 yuan and a latte is 30 yuan, according to statistics from Jiamen, an information service company that surveys the market related to coffee and tea, according to the Nippon Keizai Shimbun website on March 5. Although rents and labour costs are on the rise in China's big cities, cafes are becoming more attractive, with prices similar to those in Japan being accepted.

According to the report, a joint survey conducted by Meituan Dianping and Jiamen showed that as of June 2016, there were more than 100000 cafes in China. There are 6500 in Shanghai, ranking first. There are nearly 4800 in Beijing, ranking second. Guangzhou ranked third with 3100. Coffee culture has taken root in coastal areas with higher incomes and more foreigners living and staying.

Although the number of cafes in China has increased and decreased over the past year, the number of new stores opened exceeded the number of stores closed in the second half of 2017. There are about 70,000 cafes in Japan, and China already has more cafes than Japan. But if you take into account population and income growth, China still has plenty of room to open stores. Meituan Dianping related sources said that recently, the number of shops in second-tier cities such as Xiamen and Fuzhou has increased significantly.

With the increase in the number of stores, attempts to find features are also expanding, the report said. Starbucks opened a high-end store "Starbucks selection Bakery" in Shanghai in December 2017. In mid-January 2018, more than a month after opening, the number of people entering the store still needs to be limited according to the period of time. There is a large baking equipment in the store, and customers can see all the production processes. It is not limited to coffee, but also serves beer, which helps to attract customers in the evening. Japan's first Starbucks Zhenxuan Bakery is scheduled to open in December 2018. Shanghai is ahead, perhaps it is Starbucks' frank evaluation of the development potential of the Shanghai market.

The report believes that there are more and more efforts to expand food menus in coffee chains and private cafes that are not as well-known as Starbucks. Bread and cake that go well with coffee are at the core, which is also a business opportunity for Japanese companies.

Cooking executives from coffee chains and bakeries continue to visit the studio set up by Japan's No.2 Oil Group in Shanghai. The studio not only provides market analysis, but also makes Danish pastries and cakes on site, and provides technical guidance.

The person in charge of the scene, Kenjiro Fujimoto, not only works in Shanghai, but also frequently travels to cities all over China. Second oil production will also increase the number of technical guidance centers from the current 5 to more than 10 to provide support in terms of sales methods and technology.

According to the report, some analysts believe that the average annual coffee consumption in China is less than 10 cups, even in big cities, it is only about 20 cups. This is still a significant gap compared with developed countries where per capita annual consumption is said to be between 200 and 400 cups, and the expectation of market expansion is strong. Although the pace of cost increase has not stopped, the momentum of investors entering the coffee industry and opening stores continues. Coffee may share the market equally with milk tea, which is popular in China.