American style 5 yuan a cup, Michelle’s coffee shop is a bit wild

Original title: American style 5 yuan a cup, Michelle Ice City sells coffee a bit wild
It’s not Hey Tea or Naixue. The first domestic milk tea that broke through 10,000 stores is a brand called Michelle Ice City. On June 21, Michelle Ice City put up a banner of “Congratulations to Michelle Ice City’s global stores for breaking through 10,000 stores worldwide, get as many as you buy”. This street-side milk tea shop that has been in business since 1997 is gradually showing up Its edge.
But its ambitions are not limited to this. Michelle Ice City is trying to apply the logic of making milk tea to coffee.
As early as 2017, Michelle Bingcheng launched a national chain beverage brand “Lucky Coffee” that mainly focuses on freshly ground coffee. At present, Lucky Coffee’s product line has 27 products in 5 categories. In addition to coffee drinks and hanging ear coffee pods, it also sells a lot of milk, tea drinks, and ice cream with a unit price of 2 yuan.
American 5 yuan, latte 6 yuan, fruit coffee 5-7 yuan-completely different from the well-known chain coffee brand pricing business model, Lucky Coffee is testing the market with an absolutely low price and down-to-earth strategy.
The huge signboard at the door can be seen 500 meters away, and the posters, standing signs at the door, and promotional advertisements on the cash register all try to attract you to place an order at a preferential price. For consumption here, no barista will make hand-made coffee for you or explain the origin of the coffee beans; the menu clearly states “American coffee is sweetened by default”, which is something Starbucks and specialty coffees will not try.
In terms of location, in addition to shopping malls and commercial street shops, Lucky Coffee also opened many shops near the school. Lucky Coffee believes that young people are the consumption theme of the store, and students are a large and concentrated group with concentrated consumption time and high acceptance of coffee. Libraries and classrooms are good scenes for drinking coffee.
After several years of exploration, Lucky Coffee has used Michelle’s supply system to lay the foundation for its replication and expansion in cities outside of Zhengzhou, Henan, and opened its franchise in April this year. Currently in Zhengzhou, Lucky Coffee has 19 stores, and there are nearly 20 stores in other cities that have been launched on Dianping but have not yet opened.
And these business models are exactly what Michelle Ice City has explored over the past 20 years.
This tea brand specializes in the sinking market. It usually appears in urban villages, university towns, and small towns. In terms of products, it is mainly tea with a combination of ingredients such as tea and ice cream. In terms of pricing, all Michelle Ice City’s The product does not exceed 10 yuan; in terms of store promotion, a full coverage and repeated promotion method is adopted, and poster materials are posted throughout the store, even the cup holder is not let go.
From pricing, operation to marketing, Michelle Ice City has formed its own set of logic, and after it completed its own R&D, warehousing, and logistics system, Michelle Ice City began to quickly replicate across the country.
In 2019, Michelle Ice City already has about 7,500 stores, with revenue close to 6.5 billion. By June 2020, the number of Michelle Ice City’s stores will officially exceed 10,000. This milk tea brand used itself to verify the feasibility of the low-cost franchise model in the Chinese tea market.
When such a brand began to enter the coffee market, we still couldn’t know whether it could be as successful as Michelle Ice City, but in the Chinese market, cheap coffee is indeed the direction that many brands are trying.
Before Luckin Coffee exploded, it worked hard to instill the concept of “good coffee can be inexpensive” to Chinese coffee consumers. Users who are attracted by coupons to purchase Luckin Coffee also prove that people care about prices.
The “affordable coffee” that entered the Chinese consumers’ vision earlier than Luckin Coffee is probably a cup of freshly ground coffee at a convenience store that costs more than ten yuan. Good taste, low price and readily available, are its core. What the convenience store sells is not coffee culture or other marketing concepts that are not available, but a cup of caffeine drink with a good taste in a coffee cup, so that people who desperately need caffeine can be satisfied.
At the same time, many tea brands have already deployed in the coffee field, and their product prices are much lower than Starbucks.
In November 2018, Nai Xue’s Tea launched the tea and coffee combination “Yuanyang” as the first coffee product, and its coffee price is currently between 13 to 24 yuan; Hey Tea was also launched in March 2019 Coffee products. In April of this year, Hey Tea released its sub-brand “Xixiaocha”, and its product line also added the “Xixiaoka” series of coffee products, priced at 8 to 16 yuan; other similar to Dole CoCo