Coffee magnate expands four coffee shops in a building in Shenzhen Century of Excellence Center

Yesterday, Li Xianglu, director of Aix Coffee China, revealed that the company has accelerated its expansion this year, with only four stores in Shenzhen at the end of 2011, while six new stores have been opened in Shenzhen so far this year, aiming to open three to four new stores in the fourth quarter.

The expansion of Aix Coffee is by no means an exception. Since the beginning of this year, international well-known coffee chains such as Starbucks and COSTA have collectively made large-scale expansion in mainland China.

International giant China Expressway opens shop

Li Xianglu put the latest Aix Coffee store in Huaqiang North, Shenzhen. According to the plans of the relevant departments, the coffee shop is regarded as one of the economic substitutes for the depressed electronics industry in Huaqiang North. "many people feel that the hasty flow of people in Huaqiang north is at odds with the slow atmosphere of coffee shops, but our idea is to cater to consumer demand and create new demand," said Li Xianglu. "

Li Xianglu told reporters that the coffee market in mainland China is in a rising range, and in the context of the economic downturn at home and abroad, international counterparts continue to increase investment in China while cutting stores in the local market.

COSTA and Pacific Coffee are also expanding at an astonishing rate of geometric progression in China. The reporter consulted COSTA's official website and learned that in September alone, COSTA opened nine new stores in mainland China, achieving a high pace of nearly one store in three days.

In addition, Pacific Coffee now has 100 stores in mainland China, and the company has laid out a blueprint for expansion, announcing that it will gradually expand to second-tier cities. Fast food giant McDonald's is also making great efforts to transform its stores and add a McCoffee section in an attempt to turn the coffee chain into a new profit growth point.

The reporter noticed that in the newly completed Century of Excellence Center in Futian CBD, Shenzhen, there are four coffee shops with similar locations in a building. Li Xianglu believes that there is indeed a poor competitive environment in some regions, but on the whole, he is still optimistic about the future growth potential of the industry.

Coffee giants collectively throw money into the ring.

Starbucks recently became a hit with stores in the Lingyin Temple business district, making the world's largest coffee chain once again the subject of complaints from the Forbidden City after withdrawing from the Imperial Palace in 2007. Looking at the large-scale collective expansion of branded coffee chains in China, this is just a small episode.

Since the beginning of this year, Starbucks, Kashijia and other international well-known coffee chains have continued to expand on a large scale in mainland China. Pacific Coffee, a subsidiary of China Resources, has also made rapid efforts with the help of the strong channel advantages of China Resources Group. Under the temptation of huge business opportunities, coffee chains collectively threw money into the enclosure, and the war gradually spread from first-tier cities to second-tier cities.

Starbucks, the world's largest coffee shop chain, has announced that it wants to increase the number of stores in China to 1500 by 2015. Lavazza, known as the "most popular coffee brand in Italy", has launched plans to expand massively in China, opening 200 new stores in first-and second-tier cities in the next three years.

British Coffee, regarded as Starbucks' strongest competitor in the Chinese market, also proposed a plan this year to "open 250 new stores within three years". At present, Kashijia is the fastest-expanding brand in the Chinese coffee chain industry. in Kashijia's view, the plan is not ambitious according to the potential of the Chinese coffee consumption market.

China Resources Group acquired 80% ownership of Pacific Coffee for more than 300 million yuan, merging it into China Resources Wanjia. The chain coffee shop brand, which has 110 stores in Hong Kong alone and is highly recognized by Hong Kong consumers, began its development in mainland China in 2011: within this year, Pacific Coffee will open 50 chain stores in Shanghai, Beijing, Guangzhou, Shenzhen, Hangzhou and other cities. But China Resources's vision is to increase the number of stores in mainland China to 1000. McDonald's also plans to open 65 new independent "McCoffee" in Beijing, Shanghai, Guangzhou and Shenzhen, sharing a piece of cake in the chain coffee shop market.

The market capitalization will reach trillions in the next ten years.

Tang Guojiang, CEO of Pacific Coffee in Vientiane City, Shenzhen, told reporters: "20 years ago, Pacific Coffee was founded in Hong Kong. At present, we have 110 stores in Hong Kong. Our team is doing well in Hong Kong, while the coffee market in mainland China can be said to be in its infancy, so we have taken a fancy to the prospect of the coffee market in mainland China. In the past few years, the mainland coffee market has developed rapidly, and many customers' understanding and understanding of coffee make us feel that now is a good time. "

Data show that in the next 10 years, the market value of China's coffee market may reach as much as 1 trillion yuan, with a compound growth rate of 30% to 50%. Tang Guojiang cited several figures: at present, per capita consumption of coffee by mainland residents is only 0.1 cups per year, compared with 4 cups per year in Hong Kong, 35 cups per year in Taiwan and 107 cups per year in Japan. Japan, which has similar eating habits to China, has such a high acceptance of coffee that Tang Guojiang believes that as mainland residents increasingly come into contact with and recognize coffee, coffee can naturally be integrated into people's lives. "whether it is a business negotiation or a gathering of friends, it can be achieved in a coffee shop. If the per capita consumption of mainland residents can reach half of Hong Kong, which is also 20 times the current level, then business can really grow." Tang Guojiang said: our main development cities in the future are Beijing, Shanghai, Guangzhou and Shenzhen. Although we do not have many 16 stores, we will keep opening stores in the next few months. by the end of this year, there will be about 50 stores in the mainland. Mainly because we are optimistic about the mainland coffee market, so we open 50 stores first.

Speaking of Pacific Coffee and its major shareholder China Resources Entrepreneurship Co., Ltd., Tang Guojiang believes that China Resources Entrepreneurship is indeed a strong backing of Pacific Coffee. As we all know, China Resources Entrepreneurship is a retail giant under China Resources Group, which has many high, medium and low-grade retail brands, such as China Resources Wanjia supermarket, Suguo, Zhongyi, Huaruntang and so on. Its accumulated understanding of retail over the years is of great help to Pacific Coffee to understand the domestic retail environment. In addition, China Resources' logistics system and other collaborative resources are also very beneficial to Pacific Coffee.

Tang Guojiang also pointed out that the acquisition of Pacific Coffee is also an opportunity for China Resources. First of all, the brand is still the focus for China Resources. After several years of investigation in the coffee market, it was finally decided to buy Pacific Coffee to represent China Resources Coffee. To a large extent, it shows that China Resources has successfully recognized this brand in the Hong Kong market. In addition, the addition of Pacific Coffee is in line with the direction of diversified retail development in China Resources.

The reporter finally asked whether Pacific Coffee would be listed in the future. Tang Guojiang, who has a background in private equity, believes that with China Resources taking shares, Pacific Coffee is not short of funds, and the company's current consideration is to do a good job of enterprises and brands first. it may be natural to maximize value through financing in the future.

(responsible Editor: Leo)