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American Coffee Beans Brand Blue Bottle Coffee Jumps Into TikTok E-Commerce in the US

January 20, 2024
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How American Coffee Beans Brand Blue Bottle Built Its TikTok Shop

Blue Bottle Coffee became the first coffee brand to open a TikTok Shop in the United States in November last year. Estimated gross merchandise value over the past 30 days has approached $700,000, and the company expects to cross the one-million-dollar mark by the end of the month.

The brand, known for design-led stores, has paired a collaboration with singer The Weeknd and a broad network of influencer promotions to gain ground in TikTok's instant coffee category. Competition is building, as overseas expansion by brands such as Saturnbird and Sumidagawa tests how long that lead can hold.

At a time when chain coffee brands are competing fiercely for market share, Blue Bottle Coffee, hailed as the "Apple of the coffee world," has taken a distinctive path. Besides attracting young consumers with its highly design-driven physical stores, Blue Bottle has actively expanded into online channels. After becoming the first coffee brand to join TikTok Shop US in November last year, its estimated GMV over the past 30 days has approached $700,000 and is expected to cross the million-dollar threshold by the end of the month. Leveraging a collaboration with singer The Weeknd and a large number of influencer promotions, Blue Bottle has seized the initiative in TikTok's instant coffee category. However, as domestic brands such as Saturnbird and Sumidagawa expand overseas one after another, whether Blue Bottle can hold onto its advantage remains uncertain. This article will analyze in detail Blue Bottle Coffee's TikTok operating strategy and market prospects.

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Competition in today's coffee market is increasingly intense, and major chain brands are all striving to uncover new growth points. In addition to frequently launching collaboration campaigns to attract customers and accelerating offline store openings to strengthen brand presence, some brands have also begun building their own sales channels, selling coffee beans, beverages, and merchandise through a variety of methods.

Blue Bottle Coffee, known as the "Apple of the coffee world," is precisely a practitioner of this strategy. Since entering the public eye, Blue Bottle has won the favor of younger audiences with its uniquely styled physical store designs. At the same time, it also operates an official online store and has successively launched on major e-commerce platforms such as Amazon and Tmall, placing its products across the various media that young people frequently engage with, thereby accumulating a large number of loyal followers.

As TikTok's user base in the United States continues to climb, Blue Bottle, as a representative of American domestic specialty coffee, naturally keenly captured the enormous traffic dividend contained in this platform. Thus, it officially opened a TikTok Shop in November last year, becoming the first coffee brand to enter TikTok Shop US.

According to data provided by Echo Tik, after Blue Bottle's entry, relying on its own brand appeal and the active promotion by platform influencers, its estimated GMV over the most recent 30 days has approached $700,000, and it is expected to successfully break through the million-dollar mark by the end of this month.

In May last year, Blue Bottle Coffee reached a collaboration with famous singer The Weeknd to jointly launch a coffee brand and a new product line, Samra Origins, named after The Weeknd's mother.

Building on the strong foundation of this collaboration, after Blue Bottle joined TikTok Shop, The Weeknd's official TikTok account released two short ads about Samra Origins. Within 20 seconds, these two videos brought a cumulative 16.6 million exposures to Blue Bottle's new product line and also introduced more TikTok users to the Blue Bottle brand.

In addition to using star power to raise brand and product awareness, Blue Bottle's shop on TikTok also actively cooperates with influencers. Through both short-video commerce and livestream commerce, it has brought tens of millions of exposures to the store while also driving sales of its coffee products and merchandise.

However, judging from data disclosed by Echo Tik, aside from cooperating with TikTok's top creators and well-known singers, Blue Bottle Coffee's more frequent partners are actually mid-tier and lower-tier influencers on the platform. Although these influencers brought Blue Bottle a certain amount of video views and sales conversions, it also inevitably gives the impression that this seems somewhat inconsistent with the specialty coffee brand tone Blue Bottle has always adhered to.

In addition, based on photos shared by netizens on social platforms, Blue Bottle's shop launched significant discounts to boost sales, successfully attracting a group of netizens to place orders. Perhaps precisely because of the dual factors of "lowering its stance" to cater to consumer demand and being the coffee brand that was "the first to eat the crab" on TikTok, Blue Bottle currently occupies an advantageous position in TikTok's instant coffee market.

However, as domestic coffee brands such as Saturnbird and Sumidagawa successively enter the overseas instant coffee market and carry out overseas e-commerce operations, the increase in competitors will undoubtedly put some pressure on well-known overseas brands. Whether Blue Bottle can continue to maintain its current advantage in the overseas instant coffee e-commerce sector has become increasingly difficult to predict.

Image source: Echo Tik data, Xiaohongshu

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Blue Bottle Coffee Leverages TikTok E-Commerce, Transaction Volume Expected to Surpass One Million Dollars by Month's End

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

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