Small brands suffered a huge loss?! Chongqing Coffee Industry Association calls for an end to internal censorship

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Yesterday morning, Chongqing City Coffee Industry Association published an article titled "Proposal of Chongqing City Coffee Industry Association on Calling on Jingdong Takeout to Stop Involutional Competition of" Ten Billion Subsidy "on the Weixin Official Accounts platform, which triggered heated discussions among netizens.

Judging from the screenshots of the article content, the association believes that since Jingdong launched its take-out platform, through rolling competition such as "tens of billions of subsidies", freshly made coffee drinks have been made a key category for high subsidies, resulting in a cliff-like decline in market prices in the coffee industry. The downward trend has adversely affected the long-term healthy development of the industry.

The proposal states that platform subsidies are concentrated on coffee chain brands across the country, and the actual cost of a single cup is less than half of small and medium-sized merchants due to scale effects. Since April 2025, the takeout market share of national chain coffee brands has increased from nearly 80% in early April to nearly 90% in mid-to-late May, seriously reducing the market share of local coffee brands in Chongqing.

The online transaction amount of some local independent coffee brands in May 2025 dropped by 12% year-on-year, and the average order price dropped by 13%. The market share of independent coffee brands was severely diverted. The association said that many local specialty independent coffee brands originally relied on R & D and innovation to achieve differentiated competition. However, under the influence of high subsidies, customers were severely lost, business was greatly affected, and even lost the possibility of survival in the coffee industry.

Therefore, this non-profit industry organization established in November 2019 and has been committed to promoting the development of the local coffee industry has joined forces with 11 local coffee brands to launch this initiative, hoping that the delivery platform can listen to the voices of small and medium-sized businesses and industry development needs. The official website of Chongqing Rule of Law Online subsequently reprinted the proposal.

In this regard, some catering practitioners who are troubled by the subsidy policy for takeout platforms feel the same. They said that nowadays, under the influence of preferential subsidies from the platform, the unit price of some chain coffee brands is as low as 2 or 3 yuan. With their great price advantage, they attract users to place orders, so that some small and medium-sized brands have appeared in proposals. The decline in order volume and customer loss mentioned in the letter.

However, as consumers, netizens support the platform's continued subsidies,"I am a member of the Subsidy Association, and now I call on your Coffee Association to stop calling","I now spend less than ten yuan on coffee a week... When you say stop, you will not let me live."

In their view, many coffee consumers don't care much about the store environment, coffee varieties, etc., and just want a drink that refreshes their minds. The affordable coffee of chain brands just meets their daily needs, saying bluntly,"Who drinks cheaper?"

In addition, many people pointed out that small and medium-sized brands or independent coffee shops are more likely to follow the boutique coffee route, believing that their consumer groups are different from the users targeted by Ruixing and Cudi: people who value cost performance will choose low-priced coffee from chain brands, and people who care about the environment and product quality will keep the habit and spend it in their favorite cafes.

Therefore, many netizens do not believe that the increase in chain brand takeout will seriously affect the survival of small and medium-sized brands under the stimulation of consumption subsidies from the platform. They said that as long as independent brands have differentiated features recognized by users, they can also be at ease in this highly competitive takeout war.

It is worth mentioning that this controversial proposal has been deleted by the publisher himself, and this article is not found on the official website of Chongqing Legal Online.

Picture from: Internet

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