Luxury brands start a cross-border "Coffee Competition" with daily sales of 45 yuan per cup exceeding 10,000 yuan.

Dongfang, June 18: according to the Labor Daily, the poster "Gucci Restaurant is about to open" is very eye-catching in the IAPM shopping mall. In the K11 shopping mall, the VivienneWestwood coffee shop has been open for two months and sales are booming.

In fact, after a lot of discount cards have been played since the beginning of this year, many first-tier luxury brands have begun to operate across borders. Burberry, Herms, LouisVuitton and other companies have opened coffee shops in various places, and a "coffee battle" is under way.

The daily sales of 45 yuan per cup are over 10,000 yuan.

Yesterday, the reporter came to the VivienneWestwood coffee shop in K11 shopping mall. In the small storefront, there were nearly 50 seats in front of more than a dozen tables. While the coffee shop and its own storefront are connected to each other, many customers wander around the shop, and some simply sit on the sofa in the store and try the bags in the store. One customer told the reporter that he came for this brand. "I have always liked this brand. Compared with clothes and bags, coffee is much cheaper." The all-English menu shows that the price of a cup of coffee is about 45 yuan.

The reporter found that in the small coffee shop, the appearance rate of VivienneWestwood's Saturn logo is extremely high, from the wall design to the cake plate, and even the coffee flower can be seen everywhere. Many customers say bluntly that they really have the style of VivienneWestwood.

As the brand's first coffee shop in the world, it has a daily turnover of more than 10,000 yuan just two months after its opening, according to a person familiar with the matter. A salesperson revealed that coffee shops basically have to queue up every day, and the booming business has also promoted the sales of clothing and shoes bags, which were originally the main business. "the key is to look at the brand, with the influence of their own brand, but also to provide consumers with a better consumer experience." That's what a coffee shop employee said.

Surround consumers with brand logo

A Gucci salesperson told reporters that the Gucci coffee shop in Huanmao is expected to open before the end of the month. "if you position yourself at the middle and high end, you won't be able to afford it."

In fact, Gucci Cafe has a precedent in the world. Gucci owns coffee shops in Tokyo, Japan and Milan, Italy. In Italy, cafes form a complex brand experience space with surrounding bookstores, gift shops and cinemas. However, it is not connected to the Vivi-enneWestwood,Gucci coffee shop and the store. The Gucci coffee shop is on the fourth floor and the store is on the first floor.

Industry insiders point out that luxury brands open coffee shops and surround consumers with logo, providing an environment that is more conducive to the building of their brands.

Coffee is not the main profit point.

"I definitely don't make money by selling coffee." Dong Pengfei, Deputy Secretary General of the Coffee Professional Committee of the Shanghai Food Association, said bluntly.

Dong Pengfei told reporters that opening a coffee shop is actually a way for businesses to provide consumers with a way of life and leisure, and coffee's own advantages determine that it is the best material for cross-border mash-up. On the one hand, it has built a brand and provided services, on the other hand, it has also promoted some luxury consumption. "

Zhou Ting, a luxury expert and director of the Wealth quality Research Institute, said that the "cross-border" of luxury brands is more about creating more and more categories for customers with the same concept of life, which is also the development trend of the luxury industry. If the product line is not rich, it will gradually be at a disadvantage in market competition, especially in emerging markets.

Zhou Ting points out that in the luxury market, it takes several times more effort to develop a new customer than to retain an old one. "so many luxury brands hope to extend the product line so that their consumers can buy the brand's products repeatedly. In order to develop them into loyal customers, luxury brands have to provide consumers with a full range of products covering their customers' lifestyle."

Last year, the mainland luxury market showed negative growth for the first time in eight years, down 1 per cent from 2013, according to the annual report on the Chinese luxury market released by Bain, a consultancy. By contrast, luxury spending by mainland Chinese consumers in the global luxury market rose 9 per cent last year to 380 billion yuan, accounting for about 30 per cent of the global luxury market, and China remains the world's largest buyer of luxury goods. Thus it can be seen that the potential of the domestic luxury sales market is still great. Industry insiders point out that the integration of multi-platforms will be the development trend in the future, and coffee shops are only a trump card in the hands of luxury brands.