Coffee machine: product positioning in different markets to be cultivated

STARBUCKS (Starbucks), COSTA, SPR, carving time and Shangdao Coffee are not unfamiliar to many consumers living in China's first-and second-tier cities. It is not difficult to encounter a coffee shop with a unique flavor in the streets of "North Shanghai, Guangzhou and Shenzhen", Chengdu, Qingdao, Dalian and other places. With the accelerated pace of life and changes in eating habits, coffee is gradually coming into the daily life of Chinese people, and coffee machines are also gradually known to more Chinese consumers.

In the face of today's untapped market, starting from 2014, changing Chinese people's traditional understanding of coffee and reshaping the experience created by Nestl é's "two big bottles" (coffee + partner) and instant three-in-one coffee, advocating consumers to begin to enjoy the taste of coffee at home may be the top priority for coffee machine enterprises.

Big manufacturing country

Known as the Kingdom of small Household Appliances, China is the world's largest home appliance manufacturing base and the global coffee machine manufacturing center. Chinese-made coffee machines are exported to all parts of the world. Customs data show that in 2013, exports of coffee machines and electric teapots were 136 million, up 8.91 per cent from a year earlier; exports were close to US $2.485 billion, up 24.32 per cent from a year earlier. As there are no statistics for the coffee machine industry in the industry, we can get a glimpse of the production capacity of coffee machines in China through customs export data.

The "Electric" reporter learned that Chinese coffee machine enterprises can be divided into two categories: one is those that mainly produce and export OEM, and only some of their products enter the domestic market (such as Dongling, ACA, etc.); second, brand enterprises (such as Siemens, etc.), whose products are mainly imported or domestically customized. According to the China Industry Research report Network, coffee machine production in China accounted for about 80% of global production in 2012, and about 67% of these enterprises were licensed manufacturers.

Zhang Yaohua, sales director of Ningbo Meinong Coffee Machine Co., Ltd., said that although many enterprises have entered the coffee machine industry in recent years, coffee machines are not the leading products of these enterprises, and some brands are just branded production. "Menon is a company that mainly produces independent coffee machine brands, but it is only in recent years that we have begun to expand our domestic coffee machine business."

"Coffee machines are the third largest product in the North American Electrical Appliance Group after bread makers and ovens. Classic models of many first-tier brands, such as Delon, Philips and Electrolux, are manufactured by North American Electrical Appliances." The person in charge of North American Electric Appliances said frankly.

The market is small and the potential is great

As the birthplace of tea culture, China has been carrying out tea culture for thousands of years, gradually forming a kind of tradition and a kind of heritage. Limited by Chinese traditional culture, consumption level and consumption concept, coffee machine rarely appears in the public view, and the coffee machine market has been relatively minority.

Coffee machine has really entered China for more than a decade, from the beginning of Delong, Yourui, Bolang and other foreign brands dominate to now domestic and foreign brands compete, the Chinese coffee machine market has experienced great development. "in 2013, the domestic coffee machine market took advantage of the explosive development of small household appliances, and its sales increased by more than 30% compared with the same period last year, but it is still less than a fraction of the sales in Japan." Du Wei, general manager of MasterCard (Hangzhou) Coffee Machine Co., Ltd.

In recent years, coffee culture has gradually sprung up in China, and the bustling areas and business offices in major cities have become areas where coffee shops gather. However, due to the small consumption base of Chinese coffee machines, sales have not achieved explosive growth. "China's coffee machine market is mainly concentrated in the Yangtze River Delta, Beijing and Tianjin, Shenzhen radiating Hong Kong, followed by Wuhan, Dalian, Qingdao and other port cities." Du Wei told the Electric Appliance reporter. The regional concentration of coffee machine sales shows that the Chinese coffee machine market is not yet mature.

According to Zhongyi Kang retail market monitoring data, in February 2014, Philips retail volume share was about 35.55%, retail sales share was about 29.33%; Delon retail volume share was about 11.24%, retail sales share was about 37.48%; Merlot retail volume share was about 8.99%, retail sales share was about 6.33%; Electrolux retail volume share was about 10.28%, retail sales share was about 4.24%. North American electrical appliances retail volume share is about 3.86%, retail sales share is about 1.91%; Panasonic retail volume share is about 2.98%, retail sales share is about 1.63%. It is not difficult to see that Philips, Delong, Merlot, Electrolux, Panasonic and other foreign brands are in the forefront of the sales share, occupying the dominant position of the Chinese coffee machine market.

Although the current Chinese coffee machine market is relatively small, most of the interviewed enterprises believe that China has a huge population base, coupled with the increasing acceptance of coffee culture among Chinese people, the coffee machine market has great potential. "the popularity of coffee drinking in China is not high. Compared with Japan's average of three cups of coffee a day, China's urban population only has an average of three cups a year." Du Wei said in an interview with Electrical Appliances that there is a lot of room for improvement in China's coffee consumption capacity, so that the coffee machine market is also profitable and has potential to tap.

As the east wind of the integration of kitchen and electricity is getting stronger and stronger, many enterprises not only launch table-top coffee machines, but also begin to introduce embedded coffee machines into the Chinese market. Mao Pengcheng, project manager of small Household Appliances (China) Co., Ltd., Boxi Home Appliances (China) Co., Ltd., told Electric Appliances reporter that Siemens coffee machines have not gone the usual way since they entered China. They were the first to sell embedded coffee machines in China, and only started selling freestanding coffee machines in 2013.

It is worth noting that Nestl é, which started making coffee, also launched its first DolceGusto capsule coffee maker in China in 2013. GE Wen, vice president of the coffee business department of Nestl é Greater China, said at the launch of the new Dolce Gusto capsule coffee machine: "China's coffee market is booming and has become one of the most important strategic markets for Nestle coffee in the world. We will bring more new experiences to Chinese consumers in the future." With the entry of Nestl é, there is no doubt that the competitive form of the Chinese coffee machine market is richer. The head of a company who spoke on condition of anonymity commented: "Nestl é has a very good consumer base in China, and the capsule coffee machine launched relies on its previous advantages in the coffee field, and may be able to open up the Chinese coffee machine market from another angle."

Product positioning is different.

At present, the common coffee-making equipment in the Chinese market are siphon coffee maker, mocha coffee maker, drip coffee maker, pressure coffee machine, capsule coffee machine, semi-automatic coffee machine, automatic coffee machine and so on. Among them, siphon and mocha coffee pots are heated by alcohol lamp or gas, and the rest are electric products, which is the coffee machine mentioned in this paper.

All kinds of coffee machines have different levels of automation and market positioning. The operation of the drip-filter coffee pot is relatively simple and convenient. Users only need to add water to the water tank, put the filter paper into the funnel filter, put the coffee powder into the filter paper, turn on the power switch, and a pot of self-made espresso can be made. The market price of drip-filter coffee pot is generally less than a few hundred yuan, and there are more brands. Philips, Electrolux and other brands have product layout.

Pressure coffee machine can be divided into steam type and pump type, due to pressure, water and coffee powder can be better blend, the production of coffee is also more full-bodied. The "Electric" reporter learned through an e-commerce channel that the pressure coffee machine is a relatively common product in the market, with prices ranging from 300 to 5000 yuan. Delong, North American Electrical Appliances, Electrolux and other products are on sale.

The semi-automatic coffee machine is actually a traditional Italian coffee machine. This kind of coffee machine relies on manual operation to grind powder, press powder, load powder, brew, and manually remove residue, according to the correct operation method can produce high-quality Italian coffee, mostly used in professional coffee shops, therefore, the style and quantity of semi-automatic coffee machines on the market are not many, and the "Electrical Appliances" reporter only found a few happy guests on sale.

The full-automatic coffee machine can enjoy fragrant coffee with only one button, and the technology is more complicated. Automatic coffee machine is the "aristocrat" in the market, basically foreign brands, mostly imported products, such as Yuri, Delong, Merlot, Siemens, Xi Ke, etc., the price is generally high, more than 5000 yuan. The price of Youruiyou model is even as high as 60, 000 yuan.

The capsule coffee machine, which appeared in recent years, has a good market response because the taste of the coffee is between instant coffee and freshly ground coffee, and the price is also between them.

In addition to Nestl é, Electrolux launched the capsule coffee machine with the Italian coffee company LAVAZZA as early as 2012, and officially promoted it in China. Capsule coffee machine is a "new favorite" in Chinese coffee machine market, the main brands include Delon, Electrolux, Nestl é, etc., the price is between 1000 and 3000 yuan. At the same time, the capsule coffee machine has developed another new profit point, consumers need to keep buying coffee capsules, so that coffee machine manufacturers and consumers to establish a long-term relationship. However, it also brings another problem: the capsules of different brands of capsule coffee machines cannot be used, which makes consumers more cautious and limits the market promotion of capsule coffee machines.

Domestic brands are also participating in the market competition of capsule coffee machines. A person in charge of Ningbo Zhuoming Coffee Machine Manufacturing Co., Ltd. told Electric Appliances: "Zhuo Ming's main product is capsule coffee machine, which mainly depends on export. in 2014, aiming at the increasingly popular domestic coffee machine market, Zhuo Ming began to change its marketing strategy. Domestic business is also gradually opening up."

Compared with other coffee machine manufacturers to cover a wide range of products, Meng Pengcheng said frankly: "Siemens' target consumer group is very clear, even for high-end consumers in China, the product is only a type of fully automatic coffee machine." In the promotion of coffee machines in China, we put the consumer experience first. In order to improve the user experience, we have launched a free 'white glove service' for Chinese consumers and provide free door-to-door instructions for consumers who buy freestanding Siemens automatic coffee machines. and provide consumers with the first cup of coffee brewed with an independent Siemens automatic coffee machine, providing Chinese consumers with the intimate service of traditional European aristocratic butler. " Compared with Siemens' high-end target consumer group, Menon directly targets the target consumer group by age.

Talking about the consumers and product positioning of coffee machines, Zhang Yaohua said: "Menon has been working in overseas markets since its establishment and has only entered the Chinese market in recent years, but its market positioning is very clear, that is, it is aimed at post-90s and post-00s. Menon attaches great importance to consumer experience. Post-90s and post-00s people are keen on fashion and are more likely to accept new things. This age group must be the main consumer group in China's coffee machine market in the future. "

Differences in channel layout

The main sales channels of coffee machines include shopping malls, home appliance stores, agents, home appliance chain stores, electrical city, brand stores, online ordering and so on. Coffee pots with relatively simple technology are mainly sold in shopping malls, home appliance chain stores and online; all kinds of coffee machines are more sold in more concentrated and professional channels than home appliances, such as home appliance chain stores, brand stores and coffee shops. Capsule coffee machines are mainly sold through brand stores and online channels.

The "Electrical Appliances" reporter visited the chain stores of household appliances in Beijing, such as SUNING, Gome, large and medium-sized appliances, and almost no coffee machine was seen. In some stores, only two or three brands of coffee machines such as Philips and Electrolux are sold, and they are all low-end products. The "Electric" reporter found several fully automatic coffee machines in SUNING's flagship store, such as Philips pressure coffee machine and Delong automatic coffee machine, but few people stopped to inquire.

High-end coffee machines seem to prefer to set up camp in high-end shopping malls. The reporter found several coffee machine brand stores in high-end shopping malls such as Wangfujing department store and Century Jinyuan, such as Yuri, Delong and so on. The salesperson told the "Electric" reporter that the flow of people in the store was not small, and more people asked about it, but few people bought it.

With the development of Internet e-commerce and the advantages of network platform, online shopping has increasingly become a fashion and a mainstream of consumption. More and more coffee machine enterprises also put their products into the e-commerce channel. Zhuo Ming responsible person said that it is to see the advantages of domestic e-commerce channels, Zhuo Ming decided to enter the domestic coffee machine market on a large scale.

People related to North American Electrical Appliances said that at present, North American Electric Appliances is the only Western-style household appliance brand with omni-channel layout in China, mainly high-end department stores and professional home appliance stores in traditional stores, and has a high sales share in all front-line e-commerce platforms on the network. it also has a good reputation in the field of TV shopping.

"in Europe, MasterCard has reached a partnership with Metro to sell directly by the Metro supermarket chain. In China, MasterCard coffee machine is only sold in the supermarket chain channel, and the domestic sales channel is far from being promoted. And e-commerce is the trend of future development, MasterCard has been planning the layout of online channels. " Du Wei told the Electric Appliance reporter.

Mao Pengcheng said that Siemens coffee machines are mainly promoted through high-end online and offline sales channels, including the official flagship store of Tmall of Siemens household appliances, and will gradually enter more high-end e-commerce channels.

Unlike Siemens coffee machines, which take sales channels such as Shang Chao and directly operated stores, Menon uses the way of experience stores. Zhang Yaohua said that Minon cooperated with coffee shops to use the experience store approach to let consumers understand the role of coffee machines while drinking coffee.

As a distributor of Swiss Yourui, a person from Shanghai Qijie Economic and Trade Co., Ltd. said that as a provider of high-end coffee machines, Yourui promotes its products mainly through agents and flagship stores in various provinces and cities. Online channel sales is just an attempt of Yourui. Yuri hopes to let consumers enjoy the beauty of using a coffee maker to make coffee through real products.

The market still needs to be cultivated

Coffee, tea and cocoa are known as the three major plant drinks in the world. With a drinking history of more than 1500 years, coffee has become a popular drink in the world with a long aftertaste. In China, coffee has been blocked by tea culture with a history of nearly 5000 years. For Chinese people, drinking tea is not only a habit and taste, but also a cultural heritage. The head of a coffee machine company told the Electrical Appliance reporter: "under the circumstances that tea culture is dominant, the spread of coffee culture is a long-term and arduous project, and it will take time for Chinese people to develop the habit of drinking coffee."

"if you want to gain a foothold in the Chinese coffee machine market, you need not only technical advantages, but also service advantages, and the most important thing is the change of role. Coffee machine agents should not only be simple agents of products, but also become service providers. Pay attention to the training of coffee culture, and on this basis, use experience stores to edify consumers' culture, so as to fundamentally solve the problem of Chinese consumers' lack of awareness of coffee machines. " Zhang Yaohua said.

In view of the promotion of coffee machines in China, the opinions of various coffee machine enterprises are more or less the same. "to promote coffee machines in the Chinese market, we also need to eliminate consumers' misunderstandings about coffee, understand the differences between different methods of brewing coffee, and promote coffee culture," Mao Pengcheng said. "

A survey report on Guangzhou coffee market conducted by a university in Guangzhou in 2011 shows that the main consumers of coffee in Guangzhou are urban office workers, and most of them are middle-aged and young people. This part of the consumer group is also the leader of social fashion, they are interested in foreign food culture and easy to accept. In terms of economic strength, they can also afford this part of the cost. At the same time, there are more male consumers than female consumers, and the majority of buyers are men. The reason is that coffee is a tobacco sugar product, which is more concerned by men, and as a hobby, it is more likely to be favored by men. Guangzhou, as the representative of South China, is the first area to come into contact with foreign coffee culture, and Guangzhou people are also the main consumers of coffee.

With the closer and closer exchanges between China and foreign countries, many people who have lived abroad have become more and more inseparable from coffee. In addition, many business people and white-collar workers often need a cup of coffee to refresh themselves, and coffee is also popular among young people with petty bourgeoisie plots. Some industry insiders appeal that the coffee consumer group in China has gradually taken shape, and the key to the next step is the need for coffee machine enterprises to work together to cultivate consumption habits and tap the market potential.