The data shows that the annual growth rate of China’s coffee consumption is around 15%, and the market sales volume is expected to reach 300 billion yuan in 2020. In May 2019, the successful listing of Lucking Coffee made the hot track attract the attention of the public. Although the growth rate of the coffee market is considerable, the drinking scene of fine coffee is still limited.
However, a large number of new visitors are focusing on the fresh-grinding coffee market. The instant coffee products with a market share of more than 70% have not seen product and brand innovation for many years. The two largest brands in the market, Nestlé and Maxwell, are facing Brand aging and low-end issues.
Hanging ear coffee is considered to be one of the best ways for boutique coffee to leave the store, go to the office and home scenes. Despite this, the taste of the hanging ear coffee still depends on the hand punching technique. The cold-collected coffee sought after by young people have a short shelf life, so it is the strength of the physical store.
The online coffee brand “three and a half” follows the idea of commercial households, extending the existing coffee scene and lowering the drinking threshold of fine coffee. Even if you are a coffee white, you can easily make fine coffee at home.
Founded in 2015, the three-and-a-half online boutique coffee brand that targets family scenes offers six coffee SKUs and more than 20 coffee appliance SKUs. In 2016, cold extraction follicular coffee was launched, which sold 600,000 cups a year. In September 2018, Tmall suddenly appeared a “reverse trend” brand “three and a half”, self-positioning as “fine instant coffee”, and was recommended by many KOLs in just a few months. Debut. The social volume eventually turned into sales. In Tmall’s 2018 Double 12 event, three and a half times created sales that were second only to Nestlé’s achievements. This year’s new cold-collected instant coffee, selling more than 20,000 boxes in a single month, nearly 200,000 cups (9 per box), the repurchase rate reached 60%.
How is the transformation of the coffee scene achieved?
Coffee Appliance design.
The water outlet diameter of the three-and-a-half hand-washing pot is reduced from 10mm to 4mm, which is common in the market. It avoids the problem of the lug of the lug coffee caused by unskilled technology. Whether it is a master or a newcomer, it can be used to hang a stable hanging ear. coffee.
Instant coffee powder for portability.
The Labs (Non-Destructive Flavor Extraction System), which was developed in three and a half times, uses a low-temperature long-time extraction method to extract crystal powder, which retains the aroma and flavor of the coffee. The powder can be easily dissolved in cold water, hot water and milk. , the process of removing utensils, brewing, and follicles. Drinking scenes extend from the family to the office and take-away.
In terms of raw materials, three and a half have already built a 2000-square-meter SC-class coffee roasting factory this year. All coffees are made with SCAA (American Fine Coffee Association) 80+ Arabika coffee beans. The cost of integrated beans for hanging ear coffee is 150-160 yuan. / kg, cold extraction coffee is about 180 yuan / kg, instant cold extraction coffee 2.75 grams per piece, the cost of raw materials is 4 yuan.
In terms of channels, the online ratio is 95%, and the gross profit is over 50%. It is distributed through dozens of online e-commerce platforms such as Taobao, Xiaohongshu, and the kitchen. It will also open stores in Tmall and Jingdong this month. According to the data provided by the team, the distribution of consumers is very concentrated, 60% of them are in the first-tier cities, aged between 25-35, and women are mostly. Wu Jun said that it is easier to cover existing users in the future.
When everyone is not optimistic about the big e-commerce platform as the main sales position of the new brand, what do you do to stand out from the crowd? Why did the three-and-a-half-thousand-ups choose the niche category of “best and instant”? What are the implications of the three-and-a-half-generation function for new consumer goods entrepreneurship?
Three and a half inspiration
Three and a half are a very interesting example. I believe that its development process is very useful for all people who do consumer product innovation.
Brand Geometry says:
1. Innovation is often multi-dimensional. A single innovation is easily imitated and its vitality is not too long. Comprehensive innovations (such as three and a half processes, packaging, marketing, category, and scene innovation) can lead to a longer time to build a moat.
2. Innovation is not a one-step process, and the ability to continue to innovate is the core competitiveness. Three and a half net red cans were also successfully polished after three generations.
3. Innovation is not from a brand perspective, but from a consumer perspective. Good product innovation can really help consumers solve some problems and bring them value.
4. In the process of evaluating three and a half products, three and a half of the logo, color use, fonts, copywriting and other aspects have shown a very good aesthetic ability and consistency, leaving a deep impression. The aesthetic ability of consumers in this era is rapidly increasing, and the product owners of many brands cannot keep up. This is very dangerous. The lack of aesthetic ability was a serious injury in this era.
5. Innovation is an ongoing process, and brands that lack innovation will soon lose their vitality. It is reported that three and a half are brewing small snacks and hot tea products, which we believe is also based on this reason.
6. Simple product innovation is not enough to make the moat safe enough. How to transition from product innovation to business model innovation, achieve online and offline linkage, and find innovative business models will be three and a half challenges.