Costa Coffee enters the Chinese Market what are the foreign coffee brands in China

Enter the Chinese market

Editing

At the end of 2006, Costa established Yuedaga Shijia (Shanghai) Restaurant Management Co., Ltd. in Shanghai and opened its first store in China in Nanjing East Road pedestrian Street.

In the second half of 2008, Costa established Hualian Kashijia Restaurant Management Co., Ltd. in Beijing, officially entered the Beijing market, and rapidly developed 43 chain stores in Beijing.

In April 2011, Whitbread announced a new five-year plan to double Costa's coverage network to 3500 stores and double global sales to £1.3 billion. Obviously, the expansion of Costa in China will have a direct bearing on whether the above goals can be achieved. [1]

Unlike the American coffee culture represented by Starbucks, the pioneer of the Chinese market, Costa claims that it originated in Italy and has a "European aristocratic flavor", so it is positioned "slightly higher than Starbucks". In addition, unlike the "global chain standardization" advocated by coffee chains such as Starbucks, Costa's style in different countries and regions will be determined according to local tastes and aesthetics.

After five or six years in China, Costa ushered in its expansion period, marked by its entry into Terminal 3 (T3) of the Capital Airport, where Starbucks exited. According to Costa Coffee, the Chinese market is an "untapped gold mine". According to public data from the Beijing Coffee Industry Association, coffee consumption in China is growing at an annual rate of about 15%, much higher than the 2% worldwide. According to the average level of the international coffee consumption market, the consumption of coffee in mainland China is about 1 trillion yuan, but at present, the annual sales of coffee is only 70 billion yuan.

Paul Smith, president of Costa Asia, announced that the number of Costa stores will reach 2500 in 2018 and take away the market share of one and three of the Chinese coffee chain. At present, Costa adopts "personal" tactics in the Chinese market, and almost every store is close to Starbucks. This is very similar to having KFC next to McDonald's. Costa adopts close-to-body tactics in China, which not only saves the costs of market analysis and investigation, but also improves its popularity by taking advantage of Starbucks' preconceived position in the hearts of consumers.

Yueda Ka Shijia (Shanghai) Catering Management Co., Ltd., which is mainly responsible for the development and operation of major cities in East China, South China and West China, such as Shanghai, Hangzhou, Nanjing, Guangzhou, Wuhan and so on, is funded by 51% and 49% respectively by the British Whitbread Group and Yueda Group.

Hualian Kashijia Restaurant Management Co., Ltd. is mainly responsible for the development and operation of Costa in Beijing, Tianjin, Shandong, Liaoning, Jilin and Heilongjiang, with 50% each funded by Whitbread Group and Beijing Hualian Group.