Whose cheese did Never Coffee move behind the 9.9 yuan boutique coffee? New information about coffee industry

Why do I dare to do a $9.9 coffee business?

Starbucks' American coffee sells for 26 yuan a cup in China and $1.75 in the United States, while Coca-Cola sells for 3 yuan a bottle in China and $1.50 in the United States. This simple price comparison illustrates two problems: 1. Starbucks can make money even if it sells 10 yuan, and it is in the United States, where labor costs, logistics costs and consumption levels are higher than those in China, but the rent is not cheaper than in China. So its price in China is too high. 2. Starbucks is as cheap as Coca-Cola in the United States, because they are essentially the same to Americans, they are just drinks, not high-end things.

It is the above price formula that made founder Liu Zuofei come up with the idea of doing Never Coffee. He said that he was quite unconvinced. Why is coffee so expensive in China? if Starbucks is justified by its strong brand appeal and coffee level, then how can those coffee shops in China's coffee industry that cannot meet the basic quality standards sell their coffee for 40 to 50 yuan? In fact, it is no secret that the coffee industry is profiteering. It is basic that the gross profit reaches about 10 times the cost, but this is not a healthy profit ratio that can make the industry develop faster.

On the other hand, coffee always looks high-end to the Chinese, in the final analysis, because it is imported. Coffee itself is actually a very civilian thing. For example, in Japan, coffee is the largest canned drink, and its sales far exceed that of bottled water. One day its image in China will also become civilian, maybe five years later, maybe 10 years later, Liu Zuofei wants to gamble.

His intuition is that since the post-70s are the first batch of people exposed to coffee, now the post-90s have begun to develop into the main force in the consumer market. Another identity of the post-90s generation is the second generation of curry. Since childhood, they have invaded coffee culture and watched the coffee habits of their parents and the fighting among various coffee brands. Coffee will become a more and more common drink for them. Is it funny that people spend 30 or 40 yuan on a cup of unnutritious drinks?

Perhaps Liu Zuofei's view can not be shared by everyone, but the simple and direct reason is that he founded Never Coffee: drag the price of coffee back to the level of value, and improve the quality on this basis, which is more in line with the cognition and needs of the main consumers of coffee in the future, so the coffee industry can develop more rapidly.

Why do I dare to say that 9.9 yuan Never Coffee is fine coffee?

As a brand that wants to popularize coffee, Never Coffee's starting point is a little high, because he still takes the route of fine coffee, which starts at almost 50 yuan in coffee shops. Because of this, Never Coffee has been controversial since its inception, such as how to say that it can surpass Starbucks' quality, such as how industrialized canned coffee can reach the standard of fine coffee, and Liu Zuofei's explanation also caused us to think about these questions.

1. Why is the price only 9.9 yuan?

The price of coffee beans is clearly marked in the international market and is auctioned according to the quality level in New York (the largest boutique coffee bean market) every year. Domestic boutique coffee is expensive, a little bit because sales can not go up, we need to buy coffee beans from secondary dealers, which greatly increases the cost, while Never Coffee can guarantee a demand of about 10 tons per quarter, so it can directly dock with foreign suppliers, so the price is much more considerable.

2. Can industrial production make boutique coffee?

The taste of coffee follows the principle of 4%, 3% and 2%, that is, the origin, manor and peeling methods of raw beans determine 40% of the taste of a cup of coffee, 30% of the roasting method, 20% of the professional and sophisticated equipment, and only 10% of the final brewing and extraction process, of course, the failure of any one process will destroy all of them. Never Coffee is conducted from purchasing to baking to under the guidance of experienced baristas in the industry, and as for the extraction process of machine industrialization, Liu Zuofei said that their coffee really does not get 100 points, which is not as good as the boutique coffee brewed by coffee masters. However, their extraction process is fully and accurately controlled from water quality, water temperature to pressure, and the quality can be guaranteed by at least 70 points, which can surpass that of many novice baristas in Chinese coffee shops. or the quality that many consumers brew themselves.

There is still some helplessness, but there has to be a new way of playing.

But after all, the era of the second generation of coffee has not yet arrived, and even if it is the second generation, people may prefer milk coffee to stand the bitterness of fine coffee (that is, unadded pure coffee extract). It is true that Never Coffee has encountered various problems in the process of drainage and promotion, but the strategy of Never Coffee Coffee is to maintain good coffee quality and operate a good class of people.

Coffee is a kind of food and beverage form that is relatively easy to operate customers (let's put it in the catering circle), because its concept is trendy and mostly popular with young people, and young people are characterized by their love of making friends and their willingness to use online communication platforms. As a result, Never Coffee has a lot of WeChat groups, in which members are very active in chatting with their own high, and always help Never Coffee to do software for free (posting pictures and sending friends). Liu Zuofei is also considering more innovative methods of community operation, such as launching wake-up call projects and increasing offline interaction. For tastes are not yet popular, catering projects that require accurate customer groups, expanding and digging deep into communities may indeed be a way to cater to the trend.

Then there is the problem of coffee taste acceptance, which Never Coffee decided to solve in two-step strategy. One is to increase the types of online sales in the future, such as adding lattes, but not too much, because fancy coffee needs foam, needs to add more ingredients, and some cannot be sold in canned form. Therefore, in response to this situation, Never Coffee will add more small stores in the business district, the price remains the same, but put more flavors and blending forms there to bring you a richer coffee experience.

It's good for the local coffee industry to let a hundred flowers blossom.

The author believes that NEVER COFFEE has been controversial since its inception because: 1. This way of selling coffee destroys the vested interests of some practitioners in the industry. A discussion and wait-and-see period for anything new, because it lacks an empirical basis. But the above two points do not hinder the positive effect of the new format on the development of the coffee industry as a whole. After all, only Starbucks's coffee industry is too monopolistic, while the price of local coffee industry which is not based on strength is too uneconomic.

Moreover, the form of Never Coffee is already a normal model in other parts of the world, such as Japan. If the introduction of Never Coffee can give China's coffee industry a relatively fresh idea and further broaden this idea, then a hundred flowers blossom coffee industry is actually quite beautiful. Therefore, the author believes that the real test of Never Coffee is not the doubt of the industry, but whether the second generation era predicted by Liu Zuofei can come on time, and whether the products of Never Coffee can meet the needs of consumers, or can always change with the needs of consumers.

Source: shopkeeper strategy