With the rise of new retail coffee in China, the biggest rival of Starbucks model is the whole era.
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From foreign media to CCTV in China, media all over the world have once again focused their attention on Starbucks. But for Starbucks, life in the spotlight is not easy this time.
Starbucks has announced that it will close 150 stores in the United States in fiscal 2019, tripling the number of stores it plans to close each year. In the second quarter of 2018, growth was the lowest in nine years. Related news also showed that Starbucks shares fell significantly, falling more than 9% against the market on the 20th.
Starbucks 'current difficulties, as Starbucks founder Howard Schultz said, some of their own reasons, some from the market forces. Starbucks is not only doing well in the US, but also in China.
Howard Schultz is right that the self factor is still very important in business competition. Whether you adapt or not, the changes in the market are there. In today's China coffee market scale continues to expand, take-away coffee rise, giant accelerated layout background, in the future Chinese market Starbucks can still be alone?
The answer given by the rapidly emerging Chinese local coffee brand represented by Ruixing Coffee is NO. Ruixing coffee ambition is obvious, more importantly, its efficiency is extremely high, means and body are also flexible and soft enough.
Ruixing Coffee was established in November last year and tried to open in January this year. As of May 8, it has laid out 525 stores nationwide and more than 400 stores. The speed of building an expanded marketing network is amazing. In terms of price, Ruixing Coffee includes 21 yuan, 24 yuan and 27 yuan, challenging Starbucks 30,40 yuan products, and Ruixing Coffee also launched a number of preferential policies,"the first cup free, buy 5 get 5 free, master produced, Shunfeng delivery" and a series of gimmicks, really aroused the appetite of users.
Starbucks 'position in China is being strongly challenged by Luckin Coffee. How Starbucks responds is not just a question for itself, but for the Chinese consumer experience. Ruixing opens different types of stores to meet the diversified scene needs of users. There are four types of stores: flagship stores and leisure stores that meet users 'offline social needs, quick pick-up stores that serve business people, and takeaway kitchen stores that meet customers' delivery needs. As of early May, the number of takeaway kitchen stores delivered by Ruixing Coffee was 231, accounting for 44 percent of renovated stores, according to the data. It mainly solves the problem of inconvenient purchase for people who just need it (high-frequency coffee consumption group), and at the same time meets the demand of Ruixing Coffee for rapid and flexible layout.
As a result, Ruixing Coffee "Little Blue Cup" quickly became popular. As of May 8, it had achieved more than 3 million orders within four months, sold 5 million cups of coffee to 1.3 million consumers, added about 7200 users every day, and its competitiveness in China's coffee market was increasing day by day.
After all, the times are changing, e-commerce has swept almost everything, and the convenience and economy brought by the network have become irresistible temptation. The consumer experience of users is changing, and a new generation of new consumption habits such as "anytime, anywhere" consumption is thriving. So for Starbucks, this is really the wolf. But Starbucks is a bit slow in the face of dramatic times. Their attitude to new things is even surprising. As competitors and business partners embrace the new economic model, they are not trying to figure out how to adapt and take advantage of it, but rather the opposite. Starbucks ceo kevin johnson went so far as to complain that starbucks underperformed because takeout guys queued up and affected starbucks 'store experience.
While the store experience remains important, the problem is that competitors aren't relaxing in this area either. Starbucks has responded much more slowly than its rivals to new experiences, including those that rely on delivery, and even, as noted above, with a touch of arrogance.
Therefore, Ruixing Coffee's "master production, Shunfeng delivery" or their 231 purely delivered takeaway kitchen stores are enough for us to hear the footsteps of the times and understand the dramatic changes in consumer consumption patterns. As for the rapid rise of Ruixing "Little Blue Cup", the order volume of more than 3 million in 4 months is more than enough to explain everything.
It must be pointed out that Ruixing Coffee's victory in diversified experience is to spread to store experience, and it is already spreading. When consumers recognize you in diversity and choose stores, it is certainly a bonus point for you. Similarly, when Starbucks is simple and slow in this respect, failing to keep up with the benefits brought by the Internet economy and developed delivery, consumer recognition of its brand will also decline, which will eventually be reflected in store consumption. Starbucks will face an overall crisis.
There is no eternal king in the market, let alone a natural king. Starbucks can have decades of glory, but also because their founder number accurate pulse of the times. In our world, only business models obey the times, and it is impossible to accommodate certain business models throughout the times unless you want to do niche businesses.
Specific to China's market, if you want to keep up with the times, then whether in Beijing, Shanghai such a metropolis, or Xiamen, Hangzhou such a rising "new line", pro-people and grounding gas is always king, and localization is the magic weapon of competition.
Do you not see, McDonald's, KFC also sold soy milk, Starbucks in the face of strong competition from Ruixing coffee, should also consider making themselves more localized, more people-friendly?
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