Coffee review

Factors influencing the Development of Coffee Industry

Published: 2024-11-03 Author: World Gafei
Last Updated: 2024/11/03, In the 1970s, three Americans turned Starbucks coffee into a coffee shop sign to promote the American spirit, and since then, a cup of Starbucks coffee has fascinated the world.

1. Good industrial policy and government support

The coffee chain industry is conducive to the adjustment of agricultural structure, increase agricultural efficiency and increase farmers' income. at the same time, it can also effectively absorb social surplus labor force and promote the progress of agricultural modernization. In order to promote the development of the industry, the state has issued a number of industrial policies and industry regulations, standardizing the market environment and creating a good space for development.

2. Further expand the market space.

According to the 2010 Statistical Yearbook of the National Bureau of Statistics, the domestic average is 3 cups per person per year. According to the statistics of the China Food products Industry Association, South Korea and Hong Kong, which have similar eating habits to the mainland, consume an average of five cups of coffee per person per year. With the acceleration of urbanization in China and the gradual westernization of residents' eating habits, the market consumption potential of domestic coffee chain industry is huge.

3. The improvement of information logistics technology has reduced the operating cost of coffee chain enterprises.

Information logistics technology is an important factor to support the development and growth of coffee chain enterprises. In recent years, China has made great efforts to develop transportation infrastructure construction, improve the speed and efficiency of transportation, shorten the logistics time, effectively reduce the operating costs of coffee chain enterprises, and create favorable conditions for the cross-regional development of enterprises. In addition, with the continuous improvement of Internet technology and enterprise information platform construction level, information logistics technology continues to bring forth the new, and the operational efficiency of coffee chain enterprises has been further improved.

4. the improvement of people's living standards provides a driving force for the development of the coffee industry.

In 2012, the per capita disposable income of urban residents was 24565 yuan, an increase of 12.6 percent in nominal terms over the previous year; after deducting the price factor, the real growth rate was 9.6 percent, 1.2 percentage points faster than that of the previous year. Among the per capita total income of urban residents, wage income increased by 12.5% over the previous year, net operating income increased by 15.3%, property income increased by 8.9%, and transfer income increased by 11.6%. With the improvement of people's living standards, consumers have more money to spend on coffee products.

5. Upgrade from low-level competition to brand competition

The competition in China's coffee market has remained at a low level for a long time. The lack of brand awareness and the lack of brand operation are common problems in China's coffee industry. Many enterprises' understanding of the brand only stays in the design, registration of a trademark, or looking for a set of beautiful packaging for the product, thinking that this is the brand. Brand is the consumer's trust, loyalty, satisfaction, value and other intangible assets, is the brand owner's commitment to product quality and service and reputation. The "ignorance" of the brand leads to the lagging development of local coffee enterprises, narrow profit margins, the loss of consumers and other problems.

6. take advantage of the market: grasp the characteristics of the scattered market.

The demand of coffee market will last along with the growth of economic level, which determines that coffee enterprises have a lot of room for survival. Therefore, coffee enterprises must examine themselves from the height of the whole industry and make effective strategic decisions in the current competitive pattern with their own resources. and around the strategic decision to establish their own product positioning, market positioning, target consumer group positioning, brand positioning, flexible use of capital operation means and mode of operation, size up the situation, attack in time.

7. Opportunities for the coffee industry

The political environment is secure and stable; the increase in per capita income, the improvement of living standards, and the emphasis on leisure life (the concept of consumption has changed) make the market extremely broad; science and technology are updated rapidly, and more advanced machinery and equipment are put into production; more nutritious and cheap raw materials are integrated into the products; once failed, it is easy to quit (lower exit cost) For large star hotels, there are only a limited number of well-known dessert enterprises that can meet the requirements. Therefore, in front of these customers, big brand enterprises have a strong bargaining power.

8. Threats from the coffee industry

The tax is higher, which is shared equally among the products, which increases the cost; some female consumers reject desserts in order to keep fit, reducing part of the market share; for big brand enterprises, they have strict requirements on raw materials. Their suppliers have only a few famous enterprises, so these suppliers have strong bargaining power. The competition is fierce, there are a large number of domestic and foreign enterprises competing for the market within the industry, and many new stores outside join; there are many substitutes.

9. Characteristics of coffee industry

The threshold for the entry of the subdivided coffee industry is relatively low, and the competition is fierce. The food market has also moved from the era of mass consumption to the era of focus consumption, and consumption is becoming more and more diversified and personalized, which requires enterprises to be more targeted in marketing. We must provide specialized products, create a certain category or group of market experts and bosses, and occupy the limited mental resources in the hearts of consumers. So as to become stronger and bigger.

10. the breakthrough ideas of coffee brands.

The competition in the market is ultimately the competition of brands. With the implementation of the market access system and the improvement of the entry threshold of the coffee and food industry, the domestic baking market competition has gradually changed from the vicious competition of the price war to the healthy competition track with the brand as the core. The middle and high-end market will become the hot spot of coffee industry.

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