How big is the market for cafes? Express Hotel should also be involved in 7 days.

Guide to Ka Xiang: in the increasingly mature domestic coffee market, all enterprises want to get involved in the coffee industry and get a piece of the pie. Watching "Coffee accompany you" and finally withdraw quickly because of mismanagement, why do entrepreneurs still go to this circle? Let's see what the chairman of Express Hotel has to say.

Platinum Tao Group, which has the largest number of hotel brands in China and focuses on experience consumption innovation, has been laying out non-hotel experience consumption areas since October last year. The first one to launch is the chain coffee brand-MORA COFFEE (Murra Coffee). Its minimalist Nordic design style is in sharp contrast to other chain coffee brands. Recently, the Global Alliance Network interviewed Mr. Zheng Nanyan, Co-Chairman and Chief Brand architect of Platinum Tao Group, and the MORA COFFEE team to discuss why they are involved in the coffee industry and brand development.

Enhance the member experience and enrich the consumption scene

As we all know, from 7 days to Platinum Tao Group is a magnificent transformation, from a single economic hotel brand to a service-oriented enterprise involved in multiple fields and diversified brand development, and the first innovative brand in the non-hotel industry. why choose the highly competitive coffee industry?

Zheng Nanyan said that Platinum Tao Group's vision is to provide consumers with a better life experience, that is, to build a rich circle of experiential life around scenarios such as travel and leisure life. With the rise of "experience economy" in the Internet era, customers not only need accommodation, but also have a lot of leisure time experience consumption demand, which has created a vast blue ocean market. In recent years, in addition to ploughing the hotel business, the development radius of Platinum Tao has also expanded to other areas of experiential consumption, such as coffee chains, art platforms, apartments and so on.

According to a report by the Financial Times in 2014, the annual per capita consumption of coffee in China is only 4 cups, which is 300 of the 1240 cups in Finland, the largest consumer of coffee. But in recent years, China's coffee industry has led the most valuable area of consumption with a consumption growth rate of more than 20%, and coffee giants have begun to accelerate horse racing in China.

Zheng Nanyan said: "Platinum Tao Group has a total of about 3000 offline stores, covering 300 cities across the country, and the online member platform has more than 80 million members. Coupled with the chain experience and system resources accumulated by the group over the years, in the coffee industry with great potential to form a scale layout, we should have more first-mover advantage."

According to Wang Shuang, head of the MORA COFFEE brand, MOAR COFFEE is currently embedded in several seven-day hotels owned by Platinum Tao in the form of plug-in stores with low cost. According to statistics, more than 60% of hotel customers will go to the cafe on the first floor of the lobby, double the proportion of 30% originally expected. Thus it can be seen that consumer habits are changing, consumer demand is escalating, and customers are more willing to pay for high-quality experiences. While MOAR COFFEE will be stationed in Platinum Tao's hotels of more mid-and high-end brands, such as Seven days Superior and Maple, it will also enter a variety of commercial spaces in the form of plug-in stores, such as cinemas, offices, schools, hospitals, banks, shopping malls and other consumption scenes to provide consumers with a richer life experience.

MORA COFFEE explores the way of Brand Development with Love

Looking at the current situation of the development of the domestic coffee industry, the international coffee chain brands headed by Starbucks and Pacific (11.84-6.99%, consulting) focus on the third space, coffee fast culture; 3W, cafes of many people and other crowdfunding, Internet start-up cafes focus on circle culture; Korean coffee focuses on petty bourgeoisie. In the process of creating MOAR COFFEE, how did Platinum Tao find a unique position conducive to its own development and break out?

The person in charge of MORA said that Platinum Tao members have younger genes, and MORA hopes to become a favorite coffee brand for young people from the very beginning. MORA has always believed that the major coffee chains do not really pay attention to the inner needs of Chinese young people. Combined with the research at the beginning of the project and the original intention of the MORA team, they found that the strong desire to do what they love, not limited by traditional rules and realistic standards, is the collective resonance of young people born in the 1980s and 1990s. "We decided to build MORA into a gathering place for love-in addition to providing high-quality and affordable coffee, MORA also uses cafes as space to provide young people with real activities and sharing platforms around their interests and hobbies, and work with young people to practice the brand concept of 'love with love, live with color'."

Since the launch of the brand in October 2014, MORA has teamed up with more than 20 event groups to organize more than 50 sharing meetings, concerts, handicraft classes, art exhibitions and other activities, with nearly 3000 participants, gathering a group of die-hard fans who share common love. at the same time, it also brings more than 20% external customers to coffee stores.

Plug-in cafes create new profit points for idle space

The reporter found that by making use of the idle space of existing stores, combined with products with high comprehensive gross profit margin, and using plug-in cafes as value-added points, the hotel not only improves revenue, but also makes up for the lack of customer experience in leisure consumption. Take MORA COFFEE Tianhe East Store as an example, it received an average of 169 customers a day in May, and the number of customers in the hotel turned into nearly 68%, with a profit margin as high as 31%. With the operation mode of "low investment, high gross margin and sustained growth", it has laid a good foundation for brand development.

It is reported that MORA heavily invited Hong Kong designers to design a factory prefabricated counter system to reduce the coffee counter of a general chain cafe covering an area of 15-20 square meters and requiring a 15-day construction period to 6-8 square meters and 3-5 days of on-site assembly through industrial module design, providing support for putting into operation as soon as possible and reducing the impact of on-site construction.

According to the person in charge of MORA, MORA COFFEE has been laid out in first-and second-tier cities in Guangzhou, Beijing, Shanghai, Shenzhen and other major provincial capitals, and is expected to set up 1000 stores in China within 3 years.

Source: China Financial Times Network