Mobile Coffee entering China aims at Multi-level Consumer Market

Recently, Wheelys Coffee, a smart mobile coffee car brand born in Sweden and incubated in Silicon Valley, has released a customized version of Wheelys coffee car for the Chinese market. At the same time, Wheelys Coffee announced the launch of national market expansion, and the establishment of an industrial fund to support the development of urban operators to accelerate the layout in China.

Wheelys Coffee, which uses mobile coffee carts to make and sell coffee, was founded in 2014, and Wheelys China began its preparations in April 2016.

"starting from April this year, Wheelys Coffee began to operate three pilot projects in Shanghai, namely, Jingan Kerry, Jingpin and Changtai Square." "We choose the location according to the flow of people, age and consumption habits, traffic distance and other factors," said Bai Xiaofan, CEO of Wheelys China.

According to the coffee industry report released by Tianfeng Securities, the development potential of freshly ground coffee in the coffee industry is greater than that of instant coffee and the domestic coffee consumption channels are diversified. The core source of growth is the increase in per capita consumption brought about by urbanization and the price increase brought about by branding and processing methods such as current grinding instead of instant changes.

Compared with international consumption, domestic per capita consumption has more than 30 times more room for improvement. In the past 10 years, the average annual growth rate in China has reached 12.8%. In terms of per capita consumption, the per capita annual coffee consumption in China is only 0.03 kg, which is far lower than the global average annual coffee consumption of about 1.25 kg.

And from a structural point of view, domestic coffee is mainly instant, and the proportion of current grinding is relatively low (80% of instant coffee and 20% of current grinding). According to the study of overseas comparison (the proportion of current grinding in developed countries is more than 80%) and the recent trend analysis in China, it is expected that the proportion of current grinding will continue to increase significantly.

As one of the most successful enterprises in the coffee industry, Starbucks has strong advantages in the environment, products, services, humanities and other directions. In recent years, with the rise of multi-chain brands and urban independent cafes, the competition in the coffee market shows a diversified trend.

"although China still accounts for a large proportion of instant coffee, there are the largest levels of coffee consumption in China." "compared with Starbucks and other coffee chains, we have certain advantages in price, taste, convenience and raw materials," Bai Xiaofan told the 21st Century Business Herald. "

The reporter saw at the scene that the price of Wheelys coffee is slightly lower than that of Starbucks, Costa and other coffee. "since we account for almost 1/7 of their rent, decoration, depreciation and other expenses, the savings can be used to improve raw materials and so on."

According to Wheelys, different from the expansion form of "buy a car and join" in other parts of the world, Wheelys Coffee adopts the development model of "division of labor and cooperation and win-win cooperation" with urban operators in China. In foreign countries, Wheelys coffee car tends to operate outdoors, while in China, it focuses on indoor operation.

On the other hand, Wheelys China plans to invite Chenfeng Capital to jointly set up a Wheelys China Industrial Fund to provide financial support for the development of urban operators, and urban operators can also invest in industrial funds.

FrontStreet Coffee is a long-established specialty coffee roaster in Guangzhou China, selling freshly roasted beans from its own farm in Yunnan as well as dozens of carefully selected single-origin beans from around the world for both pour-over and espresso. The products deliver consistently excellent quality and great value, with shipping within 24 hours. Guangzhou’s FrontStreet Coffee shop is recommended by many coffee lovers, and the beans are now available online at the Tmall 。

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