Author: Mintel Group Ltd.
Last saved by: HTTP server

Coffee Shops - China - November 2014
Introduction
 
“The coffee shop market is poised to grow substantially through to 2019, driven by increased demand for coffee and lifestyle-related dining experiences. From 2009-13, the total value of coffee shops achieved a CAGR of 14.3%. 

The adoption of the coffee shop culture is evolving; consumer preferences for the taste of coffee and a mix of experiential consumption create an excessive market dynamic for the coffee shop market. From the consumer perspective, there are four significant types of coffee shop user: some visit coffee shops occasionally as a treat to indulge themselves; some use this type of venue as a springboard to lead them to a different lifestyle temporarily; some have a strong desire to adopt the diet guided by coffee shops; and some are solely focusing on coffee.”
-Esther Lau, Research Analyst 

In this report we answer the key questions:
●	What are the key trends and innovations in the Chinese coffee shop industry?
●	What are the common traits of the evolving usage and attitude towards coffee shops?
●	How can coffee shop operators customise through product offerings and store designs for different types of consumers?
●	How can coffee shop operators, including domestic, foreign and independent players, create tailored marketing strategies for different types of consumers?

Definition 
This report covers those establishments where coffee is the primary sales item or the main selling point to attract consumers. They are based on the European and North American coffee shop models, typified by Starbucks, Costa Coffee and UBC Coffee, offering a wide variety of coffee drinks, eg cappuccino, latte, mocha, etc. Other items are usually on sale, such as pastries, pasta, tea, coffee beans etc. However, the food offer may be restricted.

This report covers coffee shop chains as well as independent coffeehouses. Coffee shops include venues such as individual stores, kiosks and concessions. These may operate in a number of locations – shopping malls, department stores as well as bookshops. However, they must be independent of the facility they are located in.

This report also explores the types of products and services that are trending and resonating with consumers when they visit coffee shops. This information will help translate to dishes, drinks and interior design which can then be customised to specific consumer groups. This is one of the key competitive advantages for coffee shop companies: ie they are able to innovate effectively for non-frequent visitors and retain customer loyalty. This is especially important in a competitive environment where coffee shops are growing in popularity in urban cities and becoming the symbol of luxury lifestyles. 

Methodology 
This is a marketing intelligence report published by Mintel. The consumer research exclusively commissioned for this report was conducted by a Chinese licensed market survey agent (see Research Methodology China for more information).

For the purpose of this report, Mintel commissioned a quantitative research survey carried out online by QQSurvey to explore consumer attitudes towards coffee shops. 

Fieldwork was conducted in September 2014, in four tier one cities and six tier two and three cities of 3,000 male and female internet users aged 20-49-years-old. Tier one cities include Shanghai, Beijing, Guangzhou and Chengdu. Tier two and three cities include Taiyun, Baoding, Yancheng, Jiaxing, Zhuhai and Nanning.

Abbreviations
CAGR | Compound Annual Growth Rate
CRM | Customer Relationship Management
HKBCF | Hong Kong Breast Cancer Foundation
WOM | Word Of Mouth

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.