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The fourth wave of coffee has swept in.
Coffee is moving towards scale.
Hello friends! I'm Wu Binbin and I'm from Bixing Coffee. Thank you very much for providing me with such a valuable platform and giving me the opportunity to stand here and communicate with you. Today, I would like to share with you how Bixing Coffee has successfully broken through from scratch.
Since the opening of its first store on June 7, 2022, Bixing Coffee has expanded rapidly in less than a year, and has successfully opened more than 150 stores so far, of which nearly 81 are new. It is worth mentioning that in June this year, we will cross the important milestone of 100 stores.
When it comes to how Bixing Coffee has achieved this major breakthrough from scratch, we have to review the development of the entire coffee industry.
The historical evolution of the coffee industry can be divided into three important stages. The first stage was the fast-food revolution of coffee, represented by Nescafe, which saw coffee be liberated from the cumbersome production process and become a fast-moving beverage for the masses. The second stage is the chain operation of coffee, and Starbucks has emerged in this stage, pushing coffee culture to new heights. In the third stage, we call the era of coffee aesthetics, the emergence of specialty coffee has made coffee not only a drink, but also a symbol of lifestyle.
These three phases of development prove that coffee is not just a beloved drink, but a thriving business.
With the rise of the affordable coffee market and the increasing scale of coffee consumption, we believe that we are now in the midst of a new wave of coffee development – the fourth coffee wave. And we are the active participants and promoters in this new wave.
What does the coffee wave look like at scale?
Comparing the number of the top 12 stores in the tea industry and the top 12 stores in the coffee industry, it can be found that the top 12 stores in the tea industry all have more than 1,000 stores, while more stores are concentrated between 3,000 and 5,000. Of the top 12 stores in the coffee industry, only 5 brands have more than 1,000 stores.
Why is the tea industry able to achieve scale, while the coffee industry only opens a few dozen stores a year? How can the coffee industry open hundreds of stores in a new model like the tea industry?
Break down the bottleneck at scale.
Three points to think deeply about.
How can coffee overcome the limitations of scale and achieve scale comparable to tea? We need to think deeply about the following three aspects.
The first is the business model, channels and ways to open stores; followed by user psychology and brand building; The third is the product and range. Focusing on these three aspects, I will briefly share the development process of Bixing Coffee from zero to one.
1. Space breakthrough: "one store, one design" in standardization
Our approach is to interact with customers through space design, extracting unique visual symbols vi green and reassembling different props in different store types to achieve a more aesthetically pleasing design.
To sum up, we take into account standardization while pursuing aesthetics, and realize personalized design on the basis of standardization.
2. Product breakthrough: innovative products + traffic + creativity.
In the competition in the coffee market, we have adopted the strategy of seasonal new products, traffic drainage and creative innovation, combining products, traffic and creativity to attract more people and increase the repurchase rate.
We are constantly focusing on innovation and breakthroughs, constantly introducing new products and ideas through structural restructuring between different time periods and products.
3. Marketing breakthrough: membership management and community management.
The first is membership management, which mainly focuses on important value members and regularly interacts with churned members to build a private domain traffic pool and conduct private domain marketing.
The second is community management, during the opening of a new store, each new store will be required to join the community to establish a stable customer base, and to market public domain traffic by managing interactive communication.
4. Model breakthrough: franchise + small store.
There are two main business models: direct stores and franchise stores, considering the size and location of the store.
At present, most of the top 12 in the tea industry adopt the model of franchise + small store, and after 1 or 2 years of change in the coffee industry, most of the top 5 are also close to the model of franchise + small store.
What is the future of the entire coffee industry? Whether it will also be like the tea industry to adopt the franchise + small shop model, this question may take 1 to 2 years to get an answer.
On this issue, there is no right or wrong, and the franchise + small store model can also be successful.
Our goal is to create the ultimate small store, and pass the cost of building a large store to consumers through the ultimate reach.
Finally, let's think about a sentence, sometimes we don't persevere because we see hope, but because we persevere, we can see hope.
No matter how strong Starbucks is today, how powerful the scale of Luckin is, and how fast Cudi runs, as long as we firmly believe in one thing, as long as every coffee practitioner here in the future sorts out the underlying logic, as long as we have our own position, we will definitely be able to succeed.
As long as we believe, the coffee industry is imaginative.
Finally, I would like to thank everyone who has contributed to China's coffee industry.