What does the c o f f e e b e a n g i f t s listing show?

In March 2017, Coffee Wing listed on China's New Third Board, drawing attention for a shareholder list that included Yin Feng, He Jiong, Chen Ou and Yao Jinbo among the top ten holders. Founder Yin Feng framed the company's strategy around four words: IP and cross-border for influence, data and capital for sustained operation.

At a Catering O2O session, Yin Feng described a Catering 3.0 era in which post-80s and post-90s consumers contribute 70 to 80 percent of market spending, and argued that China's restaurant industry is entering a refined, standardized and legalized window. He said 17 years went into building internal management systems now automated across ERP, SCM, COPM and OPM.

In March 2017, Coffee Wing was officially listed on the New Third Board, and its shareholder list, which included a gathering of celebrities and internet tycoons, attracted widespread attention. Founder Yin Feng, at a sharing session hosted by Catering O2O, gave a speech titled "The Capital Path of Cross-border Catering Driven by Data and IP," systematically explaining the consumer changes in the Catering 3.0 era, the timing for going public, two approaches, and Coffee Wing's business strategy centered on "IP, cross-border, data, and capital." This article fully presents the highlights of Yin Feng's speech, covering catering industry trends, brand building, user operations, and marketing innovation, providing in-depth reference for coffee enthusiasts and catering practitioners.

On March 24, 2017, Coffee Wing successfully listed on the New Third Board.

Even more eye-catching was its shareholder lineup—"Fairy Sister" Yin Feng, variety show star He Jiong, Jumei Youpin founder Chen Ou, 58.com chairman Yao Jinbo, and others were all among the company's top ten shareholders. Coffee Wing was thus regarded as a benchmark case of cross-border catering.

In Yin Feng's view, Coffee Wing's development relies on four key words: "IP" and "cross-border" constitute influence in segmented markets, while "data" and "capital" are the driving forces for sustained operation and development.

In today's increasingly fierce competition in catering, how can catering companies break through?

On April 28, Coffee Wing founder Yin Feng delivered a speech titled "The Capital Path of Cross-border Catering Driven by Data and IP" at the "2017 China Catering Investment and Innovation Story Session" hosted by Catering O2O.

Yin Feng's core viewpoints:

1. The new consumption era has arrived. Meituan data shows that the post-80s and post-90s generations contribute 70% to 80% of overall market consumption power.

2. Many catering companies dare to connect with the capital market and become public companies precisely because the window period for China's catering industry to become refined, standardized, and legalized has opened.

3. It took 17 years of effort to polish a set of internal catering management systems, and now this system can achieve full automation in ERP, SCM, COPM, OPM, and other links.

4. Through personalized output and weekly product changes, each new product is given a new identity, transforming traditional product expression into gamified and personalized communication.

5. You must play together with users. Only by having users can you have the market and grasp the future and development trends of the brand.

The following is an excerpt from the transcript of Yin Feng's speech:

1

The Catering 3.0 Era Has Arrived

The Timing for Catering Companies to Go Public Is Ripe

In 2017, various market data predict that China's catering scale will exceed 4 trillion.

The capital market is also optimistic about the catering sector. Last year, many emerging catering brands received financing, which sent a positive signal.

In terms of business development patterns, developed countries are often half a step or even one to two steps ahead of developing countries. What the United States and Japan experienced in business infrastructure may correspond to China's present, while China's future will be their present.

1. The 3.0 internet brand marketing era has arrived.

When catering enters the 3.0 stage, how to achieve continuous replication and stable growth of the model requires joint efforts on both the supply chain and marketing ends, to establish a true brand and occupy users' minds. Because brand is the ultimate embodiment of credibility.

The new consumption era has arrived. Meituan data shows that the post-80s and post-90s generations account for 70% to 80% of the entire market's consumption power.

The characteristics of this generation of consumers are: they are born with a sense of security, have no survival crisis, are very confident, make decisions quickly, follow their feelings, and are not bound by price or other factors when it comes to what they like and are willing to do. They are highly loyal to themselves.

2. The timing for going public is ripe.

This is the development trajectory of the international catering industry: from single-store profitability to chain replication, then to supply chain support, then connecting with capital, and ultimately growing into an international major brand.

Many catering companies dare to enter the capital market and become public companies precisely because the opportunity for China's catering industry to become refined, standardized, and legalized has arrived.

We also have the opportunity to give birth in China to many great, inheritable brands, just like McDonald's, KFC, and Starbucks.

2

Two Approaches in Catering

Resource integration type, strategic layout type

Currently, the catering industry has split into two approaches. The first is the resource integration type.

It may not independently develop and produce products, but only act as a product transporter. By integrating relevant resources well, it can use the brand to capture the market.

Under this approach, first understand what customers exist in the market and what customer needs are. Customers determine our direction, and market size determines brand scale.

The resources around us determine the future brand territory. Whether the brand can continue depends on its endurance.

The second is the strategic layout type.

It still takes products as the starting point and continuously refreshes the NPS value—that is, the user net promoter score. If the product experience is good, it will continue to spread, new customers become old customers, and old customers bring new customers.

We have a core super product that determines our core users. On this basis, we continuously refresh the user experience, and traffic continues to grow.

Traffic growth drives us to continuously lay out and determines the expansion of our territory. When many peers compete, users will definitely choose brands with credibility and influence, and thus we gain sustained endurance.

3

Coffee Wing's Approach

"IP, cross-border, data, capital"

Where is the future direction of the brand? As Yao Jinbo often says, in today's entrepreneurship and operation, there is no shortage of teams and products, or even funds; what is lacking is direction.

If the direction is wrong, no amount of effort will be effective. But if the direction is right, finding the most effective methodology and the best resource integration platform will lead to rapid explosion.

Many internet ways of thinking and approaches are worth learning from for traditional industries. Driven by this, what path has Coffee Wing chosen? I will share our approach with everyone.

1. IP approach: Who are we?

IP refers to intellectual wealth. For example, Fairy Sister is an IP, Xu Xiaoping is an IP, He Jiong, Yao Jinbo, and Du Haitao are IPs, and eventually Coffee Wing itself also becomes an IP.

At the time, I thought the United States would definitely become China. As China develops with civilization, it will also need social spaces. At that time, foreign cafes had two models: one was the Starbucks-style small cafe with a relatively simple structure; the other was the meal-replacement cafe.

Once the model was established, we have persisted with it to this day. We focus on the ability of brand culture to connect with customers, while products are only the part that satisfies customers' physiological functions in the cafe. What we have always been doing is brand output.

Investors positioned us as China's number one entertainment coffee brand.

Starting from coffee as a lifestyle, we use cultural creativity, pan-entertainment, consumption upgrading, and chain replication to build China's own coffee brand.

China's catering market reaches 3.5 trillion, while the coffee market is only 70 billion.

Of that, 20 billion is the cafe specialty coffee market, and 50 billion is the instant coffee market. China's 70 billion market still has no absolute number one brand, except for the foreign Starbucks.

And I have always believed that Americans may not truly understand Chinese people's needs. We know well that only by understanding users can we build a brand with sustainable endurance.

At that time, we made up our minds to become Chinese people's true third space, starting from coffee as a social category.

2. Cross-border approach: Coffee light meals + stars

Industry advantages, demand growth, the rise of users, and capital trends are closely related to the changes in the core consumer groups I mentioned. The rise of the post-80s and post-90s generations means their lifestyle has already become internationalized.

If we have post-90s or post-00s in our families, these children choose consumption scenes completely differently from us. They care more about where they are and who they are with, rather than what they eat.

If it comes to what to eat, what they choose is good-looking, fun, interesting, and unique, not necessarily truly delicious. This is all because the target audience is changing.

The young consumer group is changing, so the coffee market is rising very quickly, continuing to grow by 20% each year.

We have two characteristics: First, stars become users.

For example, Teacher He, Haitao, Jinbo, Chen Ou, and Xu Xiaoping. My partners have one trait: they especially love life and have a childlike heart.

People who love life like this will definitely love their careers, and will be ecstatic about every change in user experience.

Every star is especially sensitive to the field of fashion. When they convey their sensitivity and perception of life, we push it to all stores at the fastest speed, so stars become our most core influential users.

2. Users become stars.

Many customers choose Coffee Wing sometimes not because they like star IPs, but because they want to have the same quality of life as these IPs.

So they choose to come to Coffee Wing. Therefore, Coffee Wing's slogan is "We are together." Stars and users are homogeneous and on the same frequency. In their hearts there are no idols; they are the bosses, and we just be ourselves.

3. Leveraging trends for marketing: trends, internet, stars.

On the IP path, we also do a lot of marketing. For example, Big Name Takeout is a brand we incubated. We had Chen Ou drive his Porsche and Du Haitao deliver the first takeout order for this brand.

The emergence of the internet has added wings to all traditional industries. We do not need to fear them; we should use them at the lowest cost, fastest speed, and highest efficiency.

We often combine trending fashion events with the internet and stars, doing offline member activities and online promotion.

Stars guide users' consumption direction. Stars and users are homogeneous and on the same frequency, giving users a greater sense of existence. This model is more suitable for the post-80s, post-90s, and post-00s generations, to be themselves.

4. Product-driven: personalization, peripheralization.

We adopt personalized output and weekly product changes, giving each newly launched product a new identity, turning the conventional way of expressing products into a gamified and personalized way of expression.

Product peripheralization means that in addition to the products on the table, the products of the space and customers' consumption habits are deposited in our system, extending the first, second, and third consumption upgrades all the way into customers' lives.

This includes derivative products such as pillows, phone cases, and keychains. Women have one characteristic: the habit of buying on impulse. In today's consumer market, 80% of the direction is decided by women.

5. Scenario-driven: the city's third space.

What we have always done is the city's social platform, the third space, so we create the scene like a small oasis in a jungle of reinforced concrete, not a purely functional cafe or restaurant.

This is our morning series, in a space of 350-450 square meters; this is the light luxury series, 200-300 square meters per day.

6. Member-driven: play with users.

As mentioned earlier, we often do various interactive activities with members. It must be fun and interactive.

When a cafe opens, if the location is not an A-class position, how can customers be quickly ignited? So we made a software design. There were many fences in the center of Sanlitun, and we tied 2,000 cups on them, with wings and scan codes on the cups.

White-collar workers coming to work in the morning would be very curious, and everyone would scan them.

We would give a password and tell them to take the cup to the cafe across the street, and then they would unlock the rights that the cup possessed.

You must play with users. Because only by having users will you have the market, and only then will you have the brand's future and development trends.

- END -

Source | Catering O2O

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