Why CoffeeBene Sees Big Potential in Southwest China

In July 2023, during a high-level commercial property and retail investment summit in Chongqing, industry leaders gathered to discuss shifting consumer patterns and brand expansion strategies in less-developed parts of China. One of the most closely watched discussions focused on whether major coffee chains can succeed outside the usual coastal hubs — and what data backs those decisions.

CoffeeBene’s China expansion director, Ma Jun, made it clear: the company sees real potential in the southwest, especially thanks to its large population base and growing commercial activity. He also emphasized that physical coffee shops offer an experience e-commerce simply can’t replicate — giving the brand a competitive edge in a region still building its retail coffee culture.

Why CoffeeBene Is Bullish on Southwest China

Speaking at the "Business Driving Real Estate Forum" Southwest Summit held at the Chongqing Marriott Hotel on July 10, Ma Jun — Director of CoffeeBene (Shanghai) Investment Management Co., Ltd. — shared insights during a panel titled "Southwest Consumer Market Trends and New Directions in Brand Expansion." He stated that CoffeeBene’s headquarters views the southwest region as highly promising. His comments reflected both demographic factors and commercial infrastructure realities.

"We at headquarters think very highly of the southwest market," Ma said. "There’s a sizable population here, which means a solid consumer base — and a healthy commercial property sector. That’s why we’re optimistic about this area."

The Edge of Physical Coffee Shops Over E-Commerce

Ma also addressed a broader trend affecting all brick-and-mortar retailers: the rise of online shopping. While many general consumer brands face pressure from e-commerce, Ma argued that coffee shops occupy a unique space. "For most brands, online shopping is very appealing," he noted. "But we offer something irreplaceable — the physical coffee experience. That’s a big opportunity for us."

The implication is clear: as more commerce moves online, brands that provide tactile, sensory, and social experiences — like specialty coffee — can carve out a defensible position, particularly in developing markets where digital penetration doesn’t yet dominate every aspect of retail life.

What This Means for Coffee Brands in Secondary Cities

Though Ma didn’t break down specific city-level targets or store-count projections during the session, his comments underline a strategic priority for CoffeeBene: targeting regions where consumer demand is growing but competition from global digital-native brands remains relatively low. The southwest — encompassing cities such as Chongqing, Chengdu, and Kunming — fits that profile.

His emphasis on the non-replicable nature of the in-store coffee experience also hints at a longer-term play: building brand loyalty through environment, service, and ritual, rather than competing solely on convenience or price.

Frequently Asked Questions

Why is CoffeeBene focusing on the southwest of China?

CoffeeBene’s management believes the southwest has a large population and growing commercial property development, which together create a strong foundation for consumer-facing businesses like coffee shops. The region is seen as under-tapped compared to coastal cities.

What advantage does CoffeeBene see in physical stores?

Director Ma Jun highlighted that while many brands struggle against online shopping trends, coffee shops offer an in-person experience — including atmosphere, service, and the act of drinking coffee socially — that e-commerce can’t replicate. This gives CoffeeBene a competitive edge.

Did CoffeeBene announce new store openings in the southwest?

The article does not provide specific details on new store openings or exact city plans, but Ma Jun’s comments reflect a strategic interest in expanding in the southwest due to its market potential.

How does CoffeeBene differentiate itself from online coffee brands?

Ma emphasized that CoffeeBene provides a physical, sensory coffee experience — something online retailers can’t deliver. This includes the ambiance of a café, the ritual of ordering and drinking coffee in person, and direct customer interaction.

Is the southwest market growing faster than other parts of China?

While exact growth rates aren’t cited, Ma’s positive outlook suggests the southwest is experiencing strong consumer market expansion, especially in commercial real estate and population-driven demand, making it attractive for retail investment.

What role did the commercial real estate forum play in this announcement?

The forum served as a platform for discussing regional consumer trends and retail expansion strategies. Ma Jun used the event to outline CoffeeBene’s interest in the southwest, framing it within broader conversations about retail development and brand positioning.

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