The "speed and passion" brought by the "sauce flavored latte" to the coffee machine industry

In early September, Lucky Lucky launched its "Sauce Flavored Latte", which instantly made the entire network raise their glasses to try it out. At the same time, Starbucks also announced in September that its largest productive strategic investment outside the US market - the Starbucks China Coffee Innovation Industrial Park - was completed and put into operation in Kunshan, Jiangsu, China, which indirectly confirms their importance to the coffee industry in the Chinese market and also deserves reflection from home appliance coffee machine manufacturing enterprises.

The large number of coffee enthusiasts can instantly resonate with the public

According to the total online sales data of AVC, the cumulative retail sales of coffee machines from January to August were 1.54 billion yuan, a year-on-year increase of 12.5%, which is better than the performance of some other kitchen appliances this year. The hot sales of the coffee machine category also stem from the factors of last year's epidemic, which led to "white-collar" workers working from home in frontline cities such as Beijing and Shanghai, demonstrating a large demand for coffee drinks among consumers. This hot "sauce flavored latte" instantly sparked a wave of enthusiasm and once again conveyed consumers' love for coffee, laying a great foundation for coffee that can be made into coffee machines, There is still ample room for future development. In addition, we can see from the monitoring data of AVC that the number of brands joining the coffee machine industry is increasing month by month, and the industry competition is becoming increasingly fierce.

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Cross border collaboration between enterprises has become an important breakthrough point

The competition in the stock market is becoming increasingly fierce, and whether it is the home appliance industry or other industries, it is very weak to find the source of their own growth. Maotai's move is aimed at promoting the transformation of its own consumers towards a younger age, and Ruixing has also used Maotai's popularity to gain a wave of exposure and improve product grade and differentiation, laying the foundation for the brand to extend to mid to high-end products. For our small home appliance industry, starting from the crowd and seizing the purchasing preferences of the new generation of young consumers in advance is the top priority. Starting from marketing, in a relatively saturated market background, there is also a need for sensational support. Finding strategies for cross-border collaboration and mutual benefit in different industries is highly worthy of our reflection.

The future development direction of coffee machines may expand their taste functions

Maotai is common, and coffee is also common. An emerging flavor fusion of sauce flavored latte has made consumers feel that it is not common. Therefore, we also need to reflect on whether the breakthrough in the scale of the coffee machine industry in the later stage should also develop customized flavor production while improving traditional functions. Currently, according to online monitoring data from AVC from January to August, the retail sales of espresso machines have increased by 10.6%; The retail sales of American coffee machines increased by 3.5%. Consumers have a strong market demand for different flavors of coffee, and we believe that there is still great potential in the coffee machine industry in the later stage.

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The diversification of scenarios and demands has led to a differentiation of coffee machine types

From the current monitoring data classification of Ovi Cloud Network, we can divide it into eight sub product types: Italian semi-automatic, Italian fully automatic, capsule fully automatic, American fully automatic, American drip filter, coffee grinder, mocha pot, and Erhe. From a quantity perspective, the current coffee machine industry is dominated by Italian semi-automatic coffee machines, followed by Italian fully automatic coffee machines. The combined proportion of the two can reach about 75% of the entire industry. On the other hand, from a quantity perspective, the demand for various categories in the market has also become relatively dispersed. Therefore, we can also see that consumers have a large demand for different product types of coffee machines.

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Currently, there is still a large market space for per capita coffee consumption in China

According to public data, the per capita coffee consumption in China is 12 cups per person per year, which is slightly higher in Shanghai. However, it is still far lower than the 280 cups per person in Japan and 380 cups per person in the United States, which is still in its early stages. Therefore, there is still great market space for the future market demand for coffee drinks in the Chinese consumer market.

When we discuss the development of the coffee machine industry and its future trends, many people will think of the electric ovens and air fryers that are also driven by the "housing economy" dividend. They will also worry about whether the coffee machine category will also experience a reverse trend decline like the air fryer and electric fryer categories in the later stage, but in fact, it is not.

Reason 1: The coffee machine category has a special audience of coffee enthusiasts who have a stronger preference for products, and the proportion of impulsive consumers is relatively low. Reason 2: The coffee machine itself has strong social attributes, making it convenient for consumers to gather and share in their leisure time. Reason 3: There is still a lot of market space for the changes in market growth rate of the category itself and the social ownership of the product itself. As we mentioned earlier, there is still a significant gap in the annual demand for coffee among Chinese consumers compared to other countries, so the category has broad prospects.