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Blue Bottle Coffee Registers Beijing Company, Second Mainland China Store Set for Shanghai

March 3, 2022
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Blue Bottle Coffee Registers Beijing Entity as Second Mainland China Store Prepares for Shanghai

Blue Bottle Coffee has registered a company in Beijing, a filing that signals the specialty roaster is preparing a broader push into mainland China. Public records show the new entity was established with a registered address in the capital. The move comes as the company prepares to open its second mainland store, planned for West Nanjing Road in Shanghai, according to company statements and local media reports.

The Oakland-based roaster, known for its light roasts and minimal cafe design, entered mainland China with its first store in Shanghai. That location drew long lines when it opened. The Beijing registration does not yet include a confirmed store site. Company representatives did not give a timeline for either the Beijing entity or the West Nanjing Road location. Blue Bottle operates cafes in the United States, Japan, South Korea and Hong Kong.

Blue Bottle Coffee is accelerating its expansion in mainland China. Following its first store in Shanghai, a second location has been confirmed on Nanjing West Road and is now under renovation. Meanwhile, Blue Bottle Coffee registered a Beijing company in January this year, suggesting that plans to open stores in Beijing may already be on the agenda. Facing fierce competition in the mainland coffee market, Blue Bottle Coffee is entering with a high-end specialty approach, and whether its pricing strategy and brand influence can support subsequent expansion has become a focal point for the industry. This article reviews known store information and market analysis perspectives, and explores the prospects and challenges for Blue Bottle Coffee in the mainland market.

Blue Bottle Coffee Beijing Company Already Registered; Second Mainland Store Set for Shanghai Nanjing West Road

Blue Bottle Coffee's second mainland store has now entered the preparatory stage. Judging from on-site photos, hoarding has already been set up around the store, and interior renovation work has begun. The store was registered on December 29 last year, with the registered address at Rooms N1-12 and N2-11, 1551 Nanjing West Road, Jing'an District, Shanghai, approximately 1.5 kilometers from the Starbucks Reserve Shanghai Roastery.

Several previous reports mentioned that Blue Bottle Coffee plans to open 10 stores in Shanghai, and the two confirmed so far are the Chang'an Road Yutong store (the first) and the Nanjing West Road store (the second). According to Tianyancha information, apart from these two stores, there are currently no registration records for other stores. But! During the search, it was discovered that on January 29 this year, Blue Bottle Coffee registered a Beijing Co., Ltd. Does this mean that Blue Bottle Coffee has already put opening stores in Beijing on its agenda?!

Blue Bottle Coffee Beijing Company Already Registered; Second Mainland Store Set for Shanghai Nanjing West Road

As happy as we are, we still need to give a reminder! Don't crowd together! Don't crowd together! Blue Bottle Coffee will continue to open more stores, so everyone doesn't need to get too excited... Your own health is far more important than checking in at a coffee shop!!! Regarding Blue Bottle Coffee's entry into the mainland market this time, many people worry that it may have come too late... The reason is that Blue Bottle Coffee's pricing is on the high side, while the mainland coffee market has already become extremely crowded, so Blue Bottle's timing seems poor. If considered purely from a price perspective, Blue Bottle Coffee entering only now indeed has little chance of winning. However, with its unique product experience and relatively high brand awareness, Blue Bottle Coffee is still expected to attract more capital and consumer attention in the mainland coffee market. The reason is that it follows the niche, minimalist + specialty route pursued by today's young people, and its distinctive symbols and widely circulated brand story are also key elements of its success.

Some market analysts believe that Blue Bottle Coffee's entry into the market now is the right choice. At present, there is still great room for improvement in domestic consumers' acceptance of coffee culture. Many people are currently coming into contact with coffee through local brands such as Luckin and Manner, and once consumers' understanding of coffee deepens further, demand in the high-end specialty coffee market will increase accordingly. According to forecasts by the CITIC Securities Research Department, the high-end specialty coffee market is expected to account for 25%-30% of the market, and the existing independent specialty coffee shops and specialty coffee brands are not yet enough to saturate the market space for high-end specialty coffee. Under this forecast, Blue Bottle Coffee, which focuses on coffee quality, still has a chance to gain a firm foothold in the domestic coffee market, and will accelerate the pace of store expansion at the same time.

Blue Bottle Coffee Beijing Company Already Registered; Second Mainland Store Set for Shanghai Nanjing West Road

Judging from the opening situation of the first mainland Blue Bottle Coffee store so far, the pricing position has not affected consumers' choice of Blue Bottle Coffee, because what more people pursue is the brand effect of the coffee. From the feedback, the quality of Blue Bottle Coffee in the mainland is still fairly stable, and at least there has not been a large-scale scene of fans turning away, so not many consumers are fixating on the high pricing when discussing Blue Bottle Coffee. This can also be considered Blue Bottle Coffee's skill~ By choosing to maintain its style, Blue Bottle Coffee seems to be deliberately avoiding the "low-price war" among domestic coffee brands. In a certain sense, Blue Bottle Coffee does not intend to regard domestic local brands as competitors.

Image source: Internet, Weibo

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The above content is compiled by CoffeeHunters, a coffee news website.

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