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China's Starbucks flow store war is not optimistic about the replacement of low-end coffee beans or the way out?

Published: 2024-11-17 Author: World Gafei
Last Updated: 2024/11/17, Professional coffee knowledge exchange more coffee bean information Please follow the coffee workshop (Wechat official account cafe_style) industry analysis: Starbucks performance decline is not the real crisis in the Chinese market, the flow store war is bound to lose, early replacement of low-end coffee beans is the real opportunity. Starbucks is stagnant in the national market, which is similar to what Starbucks encountered before Schultz's renaissance.

Professional coffee knowledge exchange More coffee bean information Please pay attention to coffee workshop (Weixin Official Accounts cafe_style)

Insiders analysis: Starbucks performance decline is not the real crisis of the Chinese market, the battle of flow stores will undoubtedly lose, early replacement of low-end coffee beans is the real opportunity.

Starbucks 'market in the United States has stagnated, which is similar to Starbucks' crisis before Schultz's revival. The difference is that Schultz is unlikely to save the Chicago Bulls the way Jordan came back. History is strikingly similar, Starbucks and Apple alike paying precious tuition fees for their own pride. And Starbucks, which lost Schultz this time, can come back?

Starbucks 'crisis stems from three threats:

Crisis 1, cross-category threat, in Starbucks industry season decline category, star ice music is the most important category. China's fast-growing drinks such as tea are at the heart of the decline. From the overall category analysis, Starbucks 'bad sandwiches and breakfasts have struggled to appeal to Chinese consumers' discerning tastes, while Starbucks 'new strange-tasting compound coffee has proved to be a serious failure. In the Chinese market, it faces a variety of exquisite vertical small category competitors, such as Xi tea milk cover tea, low-end 711 convenience coffee, unmanned coffee machine, etc.

Crisis 2. The impact of Internet coffee, Starbucks launched the take-out market urgently, which shows the threat of Internet coffee such as Ruixing and Lian Coffee to office robbery. However, the practice of defending Starbucks only is very similar to that of traditional enterprises touching the Internet. Lucky, even coffee is the logic of consumer traffic pool, which is completely different from Starbucks chain store play, very similar to the difference between the Air Force and the Sixth Army. Starbucks 'big company's old App system and backstage membership system are too far behind Ruixing's social fission play.

Crisis III. The crisis of coffee quality upgrading. Starbucks 'selected stores launched hand-brewed coffee, acquired some high-end customers, and educated some consumers about the demand for coffee upgrading. In my opinion, Starbucks should open a separate store instead of comparing two products in one store. This is tantamount to educating consumers. You see, you used to drink low-end coffee. When high-end products and original American coffee appeared together, consumers began to realize that Starbucks was actually fooling Chinese consumers. Once this awareness is developed, unfriendly memories remain, and when Chinese consumers realize the difference between coffee beans, coffee lover culture will begin to spread, and coffee DIY will begin to mean a real crisis for Starbucks. Sino-US trade war, Chinese people are in high spirits, Starbucks 'behavior of purchasing low-quality coffee beans in Yunnan at low prices hurts farmers on the one hand, and is really deceiving consumers on the other hand. Once that mood is ignited, Starbucks faces a crisis that is not a downturn in the season.

In China, to survive and capture the intergenerational needs of consumers who change at any time, Starbucks is fighting for traffic with Chinese Internet companies today, even with Ali's help. As China's coffee market matures, Starbucks should change its product strategy for low-end coffee beans and show real sincerity to Chinese consumers. Product quality improvement and reduce their gross profit margin, do not continue to be proud, repeat Apple's mistakes.

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