Can specialty coffee brands like Seesaw survive a price war?

Seesaw Coffee has closed stores across Shanghai, Beijing, Shenzhen, and Wuhan, withdrawing entirely from Central China. Shanghai now shows about 35 operating stores, Beijing 9, and Shenzhen 3. The brand is shifting expansion toward second- and third-tier cities such as Datong and Weihai, hoping the first-store effect and promotions offset weaker demand in core commercial districts.

The pressure comes from both sides. Low-price chains like Luckin Coffee and Lucky Cup keep discounting, while cautious consumer spending makes premium pricing harder to justify. Seesaw has run collaborations and product discounts over the past six months, but whether downmarket expansion can replace lost first-tier revenue remains untested by specialty coffee operators across the country.

Once upon a time, Seesaw, as one of the representative brands of domestic specialty coffee, occupied a place in the core commercial districts of first-tier cities. However, recently, the brand has successively closed stores in Shanghai, Beijing, Shenzhen, and many other places, and the number of stores in first-tier cities has noticeably shrunk. At the same time, Seesaw has shifted its expansion focus to second- and third-tier cities with relatively less intense competition, such as Datong in Shanxi and Weihai in Shandong, trying to attract new customers with the "first store effect" and promotional activities. But under the pincer attack of low-price brands such as Luckin Coffee and Lucky Cup, and with the trend of consumption downgrading becoming apparent, the high-pricing strategy of specialty coffee is facing a severe test. Whether Seesaw's road to self-rescue can work still remains to be tested by the market.

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Recently, a Beijing netizen posted on social media revealing that Seesaw's brand image store located in Sanlitun has quietly ceased operation. The news came suddenly, catching many regular customers off guard, who left comments one after another saying they "completely didn't expect it."

Searching for "Seesaw" on food delivery platforms shows that many of the brand's stores in cities such as Shanghai, Beijing, and Shenzhen are marked as "closed." If counted by the operating stores shown on the official mini-program, Shanghai currently has 35, Beijing has only 9 left, and Shenzhen has only 3.

In fact, since the end of last year, Seesaw has frequently shown signs of operating pressure. All four stores in Wuhan were shut down, and the brand completely withdrew from the Central China market, leaving many fans deeply worried. After that, multiple stores in Hangzhou were also reported to have closed, and now with a large number of stores in first-tier cities struggling to survive, outsiders are becoming increasingly worried about Seesaw's prospects.

Judging from the updates on its official account, over the past six months Seesaw has not only made store closure adjustments. The brand has also actively planned collaborations and carried out discount promotions on some products. In fact, there have been quite a few promotional moves, yet in terms of driving sales and boosting brand visibility, the results seem less than ideal, and those willing to pay are mainly the longtime loyal customers.

On the other hand, after opening franchising, Seesaw has aimed its new store locations at "small places" with less intense competition, such as Datong in Shanxi and Weihai in Shandong. By creating the concept of a "first store in a certain place" and combining it with opening offers such as "buy one get one free," it seeks to attract the attention of local consumers.

But some people also say bluntly that although Seesaw can create buzz through promotional tactics, once the novelty fades and the discounts are used up, some customers are unwilling to repurchase products at a price of more than 30 yuan per cup.

For some consumers in second- and third-tier cities, the low-price coffee offered by brands such as Luckin Coffee and Lucky Cup is obviously more cost-effective than specialty coffee costing 30 to 40 yuan. And specialty coffee lacking an obvious price advantage is, in the eyes of some consumers, merely a "one-time drink" — once the process of visiting the store and taking photos is over, it is hard for anything more to follow.

In addition, some netizens have pointed out that although coffee shops with elaborate decor are certainly attractive, many consumers today no longer value environment and atmosphere alone. They are more inclined to pay for products that truly meet their needs. Combined with the current broader context of consumption downgrading, price factors are being emphasized more and more, so brands such as Luckin Coffee and Manner, which offer both quality and affordability, have instead become the first choice for more people.

It cannot be denied that the price wars and location battles among brands are constantly intensifying the level of involution in the coffee market, making players of all kinds feel that their room to survive is being further squeezed, and Seesaw is no exception. This is what has prompted it to repeatedly adjust its own plans and layout. It remains to be seen whether these measures can truly work and prevent the brand from shrinking again.

Image source: Internet

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