What is driving the luxury coffee store wave?

Luxury brands have opened coffee stores and limited-time pop-ups across Shanghai and Beijing, from Vivienne Westwood and MIKIMOTO to Coach, Dior, Tiffany, IWC, Maison Margiela, and Ralph Lauren. Prices run from about twenty yuan to over a hundred yuan per cup, and menus pair coffee drinks with desserts, using a coffee store format to reach general consumers.

Reviews are mixed: some customers find the experience worth the money, while others call the drinks perfunctory for the price. The strategy matters because exquisite coffee and branded tableware pull foot traffic and social media attention at lower cost than a full restaurant, letting high-end labels test a wider audience before committing to larger retail moves.

In recent years, luxury brands opening coffee shops as a cross-industry venture has become a trend that cannot be ignored. From Vivienne Westwood to Coach, from Dior to Tiffany, numerous high-end consumer brands have opened cafés or launched limited-time pop-ups in cities such as Shanghai and Beijing. These stores use exquisite decor, brand-logo tableware, and photogenic desserts as selling points, with prices ranging from twenty yuan to over a hundred yuan, attempting to use a cup of coffee to close the distance with the general public. However, consumer reviews of the experience are mixed—some feel it is worth the money, while others believe the products are perfunctory and the pricing is inflated. This article will examine the market logic and consumer reactions behind this phenomenon.

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Recently, the coffee sector has welcomed several new players, and they are all luxury brands positioned in the high-end consumer market.

Since July, news of high-end consumer brands setting up coffee shops has been continuous. First, Vivienne Westwood's coffee shop at Taikoo Li Sanlitun in Beijing officially opened its doors, followed by Japanese high-end jewelry brand MIKIMOTO, which also跨界 opened its first coffee store at Zhangyuan in Shanghai;

Not long after, Coach, known for leather goods and apparel, also opened China's first coffee shop (The COACH Coffee Shop) in Huangpu District, Shanghai; and just past Qixi Festival, Miss Dior teamed up with Grid Coffee to launch a limited-time pop-up event at Taikoo Li Sanlitun in Beijing... Looking around, it seems as if all high-end consumer brands have joined the ranks of opening coffee shops.

In fact, luxury brands crossing into dining is no longer a novelty, and there are quite a few that have ventured into the coffee sector.

Earlier, LV and Dior respectively opened a chocolate shop and a coffee shop at Taikoo Li Qiantan in Shanghai; later, Tiffany & Co. created a Tiffany Blue coffee shop at Beijing SKP, full of girly charm; last year, Swiss luxury brand IWC Schaffhausen also joined the coffee scene; and later still, brands such as Maison Margiela and Ralph Lauren also embedded coffee sections into their newly opened stores...

It is reported that the menus of coffee shops opened by such high-end consumer brands mostly adopt a "coffee drinks + desserts" combination model, with product prices ranging from twenty yuan to over a hundred yuan. Compared with traditional chain stores, these luxury brand coffee shops place more emphasis on exquisite decor, some of the tableware used even bears the brand trademark, and the desserts are quite photogenic.

Although they are indeed on the high side compared with the average prices formed by intense competition among many domestic brands, compared with jewelry or high-end clothing that costs tens of thousands or even hundreds of thousands, a cup of coffee or a cake with a logo seems much more accessible. As the saying goes, you may not be able to afford luxury goods, but you still have a chance to drink luxury-brand coffee.

Today, opening cross-industry dining stores has become one of the marketing strategies luxury brands use to promote themselves. Admittedly, these luxury brands rushing to open coffee shops are not really planning to change careers and "sell coffee"; rather, they hope to use categories such as coffee and cake that more easily reach the public to close the distance between the brand and consumers, while also attracting attention from new consumer groups. If the response is good, it can also increase brand exposure and keep the logo continuously active in people's sight.

It cannot be denied that the daily routine of holding a cup of coffee with a piece of cake and "taking carefully styled photos" is one of the lifestyles many contemporary people are keen on. News of luxury brands opening coffee shops always sparks heated discussion on social media, but regarding the dining experience, consumer evaluations are mixed.

Some people think that as long as the price is reasonable (not absurdly expensive), the products are not bad, and the environment adds value, then it is worth the money; other customers believe that these luxury brands' cross-industry dining is itself not cheap, and apart from the logo, many products are "perfunctory"—not tasty and expensive, so naturally there is no desire to repurchase.

For high-end brands crossing into dining, brand awareness determines consumers' expectations. Once a poor first impression is left on customers, no matter how big the brand is or how high its topic heat is, it will ultimately only sustain short-lived popularity.

Image source: online screenshot

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