Why Luxury Brands Move Into Coffee and Cafes

Dior's first cafe in mainland China opened on July 31 at Taikoo Li Qiantan in Shanghai, when the pop-up store there upgraded to a flagship after three theme changes. The online discussion focused less on the design or afternoon tea than on a master invited to worship the God of Wealth at the opening ceremony.

Luxury brands entering coffee is not new, and the Dior location had run as a pop-up through two earlier themes before the cafe finally materialized. The episode illustrates how such coffee ventures work as brand experiences, drawing attention through store events as much as through the drinks themselves.

Luxury brands venturing into the coffee sector is nothing new. When Taikoo Li Qiantan in Shanghai opened last year, it was announced that the first Dior café in mainland China would be moving in, but the store has always operated as a pop-up, and after two theme changes, the coffee shop never materialized. It wasn't until July 31 this year, after a third theme change, that this Dior pop-up officially upgraded to a flagship store, and the first Dior café in mainland China opened along with it. Surprisingly, however, what really sparked heated discussion online was not the store design or the exquisite afternoon tea, but the scene of inviting a master to worship the God of Wealth at the opening ceremony. This article will walk you through the whole incident and explore the business logic behind luxury brands opening coffee shops.

Luxury brands opening coffee shops is hardly anything new.

Last year, when Taikoo Li Qiantan in Shanghai opened, it revealed that the area would welcome the first Dior café in mainland China. However, since opening, the Qiantan Dior store had always operated as a pop-up, undergoing two theme changes, yet the coffee shop never materialized.

It wasn't until July 31 this year, after a third theme change, that this Dior pop-up officially upgraded to a flagship store, and the first Dior café in mainland China opened at the same time.

But what no one could have expected was that what drew netizens' attention to the official opening of the Dior flagship store and café was neither the upgraded store design, the product displays, nor the exquisite afternoon tea in the coffee shop, but a scene showing that Western brands are equally unable to escape Eastern mysticism.

Officially becoming a brand flagship store and opening the first brand coffee shop in mainland China—a double blessing. From a picture shared by a netizen, one can see that on such an auspicious day, Dior actually invited a master to worship the God of Wealth.

In the picture, a red table was set up in the store, with a properly caramelized roast suckling pig placed on it. Once the formation was arranged, everyone held incense and bowed while the master pressed his palms together, praying that the God of Wealth would bring good business to the store.

Regarding this contrast between a Western brand and Eastern customs, some netizens said it was truly "diao" (di ao). And what was surprising didn't stop at Dior.

Some sharp-eyed netizens said, I know this master! When the LV store and Gucci store opened, it was also this master who invited the God of Wealth! You could say he is the go-to master for the openings of many well-known luxury brands' domestic flagship stores!

All of a sudden, what exquisite afternoon tea was available in the Dior coffee shop no longer mattered! Netizens were more concerned about whether the master prayed to the God of Wealth in Chinese or in English... The poster also said that because this was communication according to local customs, the master spoke English.

(If the God of Wealth heard this, he'd probably say: thank you, thank you very much~)

Since the coffee shop is still in the trial operation stage and currently only offers desserts and coffee to customers who make purchases in the store, Dior had not done much publicity for the coffee shop's opening beforehand. Dior probably also did not expect that the Dior café in China would become known to everyone in this way.

The brand has already opened several coffee shops in Asia, located in South Korea, Japan, and Malaysia. Originally, the coffee shop in China would also, like those in other regions, attract netizens with its upscale dining environment and exquisite afternoon tea. Unexpectedly, in China, it was the roast suckling pig and the English-speaking master that brought it "out of the circle"...

Of course, the purpose of luxury brands opening coffee shops is not to enter the coffee track, but to provide consumers with more different types of consumption scenarios, shorten the distance between the brand and consumers, and increase connections with customers through diversification of products and services. It is a sign of luxury brands actively embracing mass consumers.

Crossing into the coffee sector is more about an experience of social scenarios and an extension of brand scenarios. Cafés have always played a good connecting role among people, things, and events from ancient times to the present. A coffee shop can not only convey the brand's culture and philosophy, but also allow consumers to integrate into the brand's atmosphere during the dining process and gain a further understanding of the brand.

Compared with brand products, the consumption threshold for coffee and desserts is lower, which can attract more new and young customers. More young consumers will not develop a sense of distant unfamiliarity because of the brand's longstanding positioning.

This God of Wealth ceremony is the same~ The good omen is real, and the marketing is real too. Through a very down-to-earth opening ceremony, mass consumers feel that luxury brands can also be so approachable~

Image source: Internet

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