A major breakthrough! Will Tims be lucky or Starbucks?

Despite the wave after wave of COVID-19 epidemic, China's catering industry has experienced the best parts and ups and downs in just a few years, which can not stop China's coffee market from becoming an important growth market for domestic and foreign coffee chains. In China's coffee market, the eight Immortals across the sea show their own talents, in such a fierce competition, a national brand from Canada Tims ushered in a major breakthrough.

Tims officially entered the Chinese market on February 26th, 2019, when Tims China CEO demonstrated the brand's ambition in media interviews: to open 1500 stores in China in 10 years or less. Starting from Shanghai and other first-tier cities where the coffee market is mature, Tims has targeted the location of office buildings, business circles and other coffee consumers, rapidly infiltrating into the booming coffee market in China.

It can be seen that Tims, a cup of Canadian national coffee, also wants to become China's national coffee. In May 2020, Tims entered the Chinese market for two years, and the number of its stores in China was close to 50. After getting a stake in Tencent, the pace of development of Tims accelerated significantly.

In February 2021, Tims China received a second round of financing. Tims China said at the time that the round of financing would be used in areas such as store expansion, digital infrastructure and brand building. In August of that year, it was reported that Tims China and Silver Crest would merge and list on NASDAQ. It was subsequently invested in December 2021 and March 2022, respectively.

Xu Xin, an excellent venture capital celebrity, once said: "is Starbucks' coffee the best in the world?" Then why do you think of Starbucks every time you drink coffee? Because you can see it everywhere, opening a shop is a solution! "

Rough words are not rough, although Tims China listed in the United States and so on, but it is still high-profile to accelerate the pace of expansion. What is obvious is to seize the market by opening more small stores.

In November last year, Tims China reached a strategic cooperation with Metro China, and Tims China became Metro China's exclusive cooperative coffee brand in China. With this cooperation, Tims drove into Metro supermarket. Compared with Starbucks, Tims has been in China for just over three years, a little younger, but its ambition to gain a foothold in the coffee market is not at all young.

On July 26, 2022, Tims China announced a strategic partnership with easy Jet Coffee of Sinopec. The two sides will explore the opening of small Tims coffee stores in some easyJet coffee stores, while the two sides will jointly develop joint ready-to-drink coffee and sell it in convenience stores across the country.

Sinopec E-Jet has developed rapidly in the past two years and is the chain convenience store brand with the largest number of stores in China. Sinopec operates more than 30,000 refueling stations across the country, many of which have opened easy-to-Jie convenience stores. As of June 30, 2020, the number of easyJet convenience stores has reached 28000.

The opportunity of Chinese coffee market is huge, the competition in each pricing high, middle and low end market is extremely fierce, and each ladder has a familiar representative. High-end prices of Starbucks, Kashijia, middle prices of Lucky, Manner, low-end prices of lucky coffee and convenience stores and so on.

The "opening an offline store every 36 hours" mentioned by Tims is similar to what used to be Manner. In addition, Tims China describes high cost performance as one of its core competitive advantages. He Bin, chief market officer of Tims China, has said that Tims is positioned in the price range of 15 to 30 yuan. At the same time, Tims not only focuses on making coffee, but also makes a combination of coffee and roasting, with the flavor of Nai Xue. It is not difficult to see some combinations of coffee and warm food from the menu.

In terms of stores, Tims China has practiced a comfortable third space, where it is common for consumers to meet customers in stores and coffee, similar to Starbucks. From the perspective of consumer habits, Tims China is a coffee company led by Tencent, and the whole process of making, ordering and serving is full of Internet logic, similar to Ruixing.

Tims China can be a combined coffee company. According to the Silver Crest update, the relevant business merger has been announced by the Securities and Exchange Commission on July 20, 2022, and the two will be listed if Silver Crest is approved at the shareholders' meeting on August 18.

Tims's China business will undoubtedly get more capital support after its listing in the US, but it will not be easy to expand smoothly in the market in the future.

Photo Source: Internet

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