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Blue Bottle's Second Shenzhen Store: A Test for Worldwide Coffee Positioning

August 18, 2024
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What Does Blue Bottle's Shenzhen Expansion Say About Worldwide Coffee?

Blue Bottle Coffee opened its second Shenzhen store at Luohu MixC, designed by wrk-shp around Luohu's "half mountains and rivers, half city" idea, with a lake area and a mountain area. Opening day drew sparse foot traffic and no queue, a sharp contrast to the two-hour line at the first South China store.

The new shop serves limited items such as a Lingnan sweet soup-inspired coffee milk pudding and a chocolate matcha chiffon cake, plus a Kinto travel thermos collab and New Orleans Style instant coffee. With three China stores opened in two months, shoppers are questioning product consistency, pricing and brand uniqueness in worldwide coffee.

Blue Bottle Coffee's second Shenzhen Luohu MixC store has opened, designed by the firm wrk-shp, incorporating Luohu's concept of "half mountains and rivers, half city." The new store introduces specialty items such as Lingnan sweet soup-inspired coffee milk pudding and collaborates with Kinto on merchandise. However, compared to the first store's grand opening with a two-hour queue, the second store saw sparse foot traffic on its opening day, with no wait to order and little discussion on social media. Blue Bottle Coffee has opened three stores in the past two months, accelerating its layout in the Chinese market, but consumers have raised questions about the product quality control, pricing, and brand uniqueness of its South China stores. This article reviews Blue Bottle Coffee's recent expansion dynamics and market feedback, explores the positioning dilemma of specialty coffee brands under price wars and localization challenges, and retains Front Street Coffee's perspective on industry trends.

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A few days ago, Blue Bottle Coffee's second store, located in Shenzhen Luohu MixC, officially opened its doors to customers.

According to official statements, the design of the second Shenzhen store was undertaken by the firm wrk-shp, which has previously created over twenty stores for Blue Bottle worldwide. The new store integrates the topographical features of Luohu District's "half mountains and rivers, half city" into its space, dividing it into a soft-atmosphere "lake area" and a minimalist-style "mountain area." Additionally, the brand logo made of fabric and the "backdrop wall" constructed with cloth curtains have become highlights of the store, with the visual effect of gently swaying in the wind being described by many visitors as unique and interesting.

It is reported that this new store also offers two limited-edition food items: one is a coffee milk pudding inspired by Lingnan sweet soup, and the other is a chocolate matcha chiffon cake that echoes the store's design style. In terms of merchandise, Blue Bottle has collaborated with Kinto to launch a travel thermos, and also stocked the recently released specialty instant coffee "New Orleans Style."

Just one month after the opening of its first South China store, the second Shenzhen store followed closely, and fans, while pleasantly surprised, also marveled at the rapid pace of Blue Bottle Coffee's store openings this time. But the actual situation is that the two Shenzhen stores were almost prepared simultaneously; it was just that social media promotion for the first store was more concentrated, which made the appearance of the Luohu store seem quite sudden.

Perhaps precisely because of insufficient promotion, in stark contrast to the two-hour long queue at the first store's opening, Blue Bottle Coffee's second Shenzhen store appeared quite deserted on its opening day. On-site, apart from invited media and fans who had learned the news in advance, there was no queue, and many seats inside the store were left empty.

Customers who made special trips to check in and take photos also confirmed that there was not much foot traffic on-site and no waiting required after ordering. Various signs indicate that the popularity of this new Blue Bottle store has greatly diminished compared to before, and it did not stir up much of a splash on social platforms either.

On the day before the Luohu store opened, Blue Bottle Coffee's official WeChat account announced that the Shanghai West Bund Center store would officially open at the end of this month. Compared to a few years ago, this year Blue Bottle has not only expanded beyond Shanghai and broadened its store footprint, but also noticeably accelerated its pace of opening stores, consecutively opening three stores within two months, breaking the previous public impression of "layout at its own unhurried pace."

Blue Bottle Coffee's second Shenzhen store opens without queue, specialty positioning and market expectations face test

Blue Bottle Coffee, which has long been deeply engaged in specialty coffee, is known as the "Apple of the coffee world" and has accumulated a large following since its rise to fame. For some coffee enthusiasts, visiting Blue Bottle is like a "pilgrimage," carrying extraordinary significance. Therefore, when it first entered the Chinese market two years ago, Blue Bottle's first store sparked a fan frenzy, with a seven-hour queue at one point.

In contrast, the new stores Blue Bottle has opened in several major first-tier cities across the country this year have never been able to recreate the queueing spectacle of the past, and it is even difficult to attract enthusiasts' attention.

While the price war's impact on the coffee market is certainly a factor, on the other hand, many consumers point out that the experience at Blue Bottle Coffee's first South China store was not ideal, with issues such as high pricing and unstable product quality control greatly disappointing fans and making them no longer hold expectations for subsequent stores.

For a long time, Blue Bottle Coffee has focused on maintaining the brand's unique design style, "one store, one design," attracting customers to visit and check in with stores that incorporate local cultural charm. But in the eyes of some loyal users, the two consecutive stores opened in Shenzhen already lack the refinement that Blue Bottle advocates, and they do not feel a rigorous attitude toward specialty coffee production.

Therefore, after taking photos and posting them on WeChat Moments, most people only regard Blue Bottle Coffee as a beautiful scenery to pass by, rather than a coffee shop closely connected to daily life.

Image source: Internet

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Blue Bottle Coffee's second Shenzhen store opens without queue, specialty positioning and market expectations face test

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

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