In the midst of China’s economic downturn and weak consumer demand, the battle of coffee prices is intensifying. Recently, the topic of a cup of coffee dropping from 9.9 yuan to 2.9 yuan has caught the market’s attention.
Tea beverage brand “古茗” recently launched a limited-time promotion for 2.9 yuan per cup of morning coffee, available from October 13th to October 26th. Customers can get a freshly brewed cup of coffee for only 2.9 yuan at their stores at 7:30 in the morning.
In September, 古茗 also started a 45-day “万店狂欢，首杯咖啡4.9元起” (Thousand Store Celebration, First Cup of Coffee Starting at 4.9 Yuan) event, setting the price for a single cup of Americano at 4.9 yuan, nearly halving the price compared to chain brands like 瑞幸 and 库迪 selling at 9.9 yuan per cup.
According to mainland media reports, low-priced coffee has become the norm. Two years ago, brands like 瑞幸 and 库迪 pushed coffee prices to 9.9 yuan, but now with new tea beverage brands like 古茗 and 茶百道 engaged in the coffee price war, prices have dropped to the era of 4 yuan or even 2 yuan per cup.
Brands like 瑞幸, 库迪, 幸运咖 have introduced discounts for in-store pick-up on food delivery platforms, such as 瑞幸 offering Standard Americanos for as low as 2.9 yuan and 库迪’s Gold Roast Americano for as little as 0.5 yuan. 幸运咖 in Beijing even launched a promotion where customers can get their signature Iced Latte for 2.9 yuan when ordering with Pimiao Fans.
On food delivery platforms, consumers who choose in-store pick-up can now buy a cup of 库迪’s Gold Roast Americano originally priced at 8.8 yuan for just 0.5 yuan or a cup of 瑞幸’s Standard Americano priced at 8.9 yuan for only 2.9 yuan.
Mainland media asserts that the coffee industry competition is no longer just a showdown between companies or a temporary marketing strategy. The entire industry, including players like 瑞幸, 库迪, 古茗, 茶百道, 星巴克, 皮爺咖啡, 肯德基肯悦咖啡, are all caught up in the cycle of price reduction promotions.
Meanwhile, the competition in the coffee chain industry continues to intensify. Data from “窄门餐眼” reveals that as of September 16th, there were nearly 234,000 coffee shops in China, with 70,600 new store openings in the past year, resulting in a net increase of 17,600 stores, while 53,000 coffee shops closed or exited the market.