Recently, news about a "Huawei wholly-owned café" sparked heated discussions online, but it was later confirmed to be a false rumor. Jiangsu Bageai Coffee Operation Co., Ltd. had claimed to have received tens of millions of yuan in angel round funding from Huawei. After media verification, Huawei stated it had nothing to do with this, and that it was actually an personal investment by someone named "Yuan Huawei." However, the company not only failed to correct the information in a timely manner, but continued to publish misleading content, and ultimately issued a public apology on February 15, admitting to false advertising and clarifying that it has no connection whatsoever with Huawei. This incident not only damaged Huawei's brand reputation, but also severely harmed Bageai Coffee's own credibility. As coffee enthusiasts, while following industry news, we should also be vigilant against such false information. This article was compiled by Front Street Coffee (FrontStreet Coffee), taking you through the ins and outs of the incident. [more…]

The coffee industry has become a popular field for various giants to compete in laying out their presence in recent years, with catering and non-catering enterprises entering the fray across sectors. According to Qichacha data, China has more than 320,000 coffee-related enterprises, with 15,000 new registrations annually. After Li-Ning, tech giant Huawei has also been reported to have applied to register the trademark "One Cup of Coffee Absorbs Cosmic Energy," classified under catering and accommodation, and is currently awaiting substantive examination. Unlike directly seizing market share, Huawei seems to place greater emphasis on coffee's connective function as a global medium, hoping to use it to attract younger groups. Ren Zhengfei once interpreted Huawei's spirit of openness with "a cup of coffee absorbs cosmic energy," and this trademark application continues that philosophy. Whether Huawei's advantages in the digital field can help it create new miracles in the coffee track is worth watching. [more…]

In recent years, the coffee sector has continued to heat up, with industry giants rushing in. Huawei Technologies Co., Ltd. previously applied to register the trademark "One Standard Coffee Absorbs Cosmic Energy"; although it has not opened physical stores, its coffee strategy has not stopped there. Recently, Huawei exclusively invested in a tens-of-millions-yuan angel round financing for Jiangsu Bageai Coffee Operation Co., Ltd., drawing attention. This 24-hour unattended shared coffee and tea room provides an independent third-party space, reflecting Huawei's judgment on future trends in intelligent perception and shared spaces. Coffee and tea here are more of an ancillary service, while what Huawei values may be coffee's connective value as a global medium. [more…]

What kind of sparks fly when a well-known domestic pharmaceutical company starts selling milk tea? In mid-August this year, North China Pharmaceutical's tea beverage brand opened its first store in Shijiazhuang, marketed with "healthy water," "Five Elements secret formula," and "pure natural, zero additives," with basic drinks priced at only 7 yuan. Even more surprising, during the soft opening, customers could enjoy a comprehensive smart health checkup, with a robot testing 70 indicators across ten major systems and recommending corresponding drinks based on the results. First-day revenue was nearly 8,000 yuan, and business has remained so booming since then that takeout has been shut down. The brand has already begun preparing franchise materials and plans to officially open franchising next year, while franchise stores will also take on the distribution function for Huawei Health functional foods. So how exactly does this move work? Let's take a closer look. [more…]

In recent years, the coffee market has continued to expand, yet competitive pressure within the industry has also intensified. As the number of coffee shops surges, well-known companies such as Sinopec, Huawei, China Post, and Li-Ning have all made cross-industry forays into the coffee business, and the Weizhi Group behind Gold Roast cereal has also increased its investment. Some see this as a reflection of consumption upgrading, while others worry that a stampede of big brands into cross-industry ventures will ultimately end in a mess. Is cross-industry coffee a rational choice that follows market logic, or merely short-term marketing sustained by novelty alone? This article analyzes market data, brand advantages, and industry barriers to explore whether cross-industry coffee can shake off the label of "short-lived internet celebrity." [more…]

Competition in China's coffee market is intensifying by the day. On one side, cross-industry giants such as Huawei, Li-Ning, and China Post are scrambling to enter the fray; on the other, some brands are quietly bowing out. Yum China has been making frequent moves lately: on one hand, it is going all in on the Italian coffee brand Lavazza, planning to open a thousand stores by 2025; on the other, it has announced that it will gradually cease operations of its COFFii & JOY brand in the Chinese market. What market logic does this advance-and-retreat reveal? Can Lavazza, armed with its authentic Italian DNA, break new ground outside the most fiercely contested price segment? This article walks you through the full picture of the events and the considerations behind them. [more…]

In recent years, major brands across all industries have been venturing into the coffee sector—from the post office, Li-Ning, and Xtep to Naobaijin and Huawei, cross-industry coffee sales have become a trend. These brands don't truly intend to dig deep into the coffee track; rather, they are eyeing the youthful traffic and fashionable attributes that coffee naturally carries, using it to get closer to consumers. However, once the hype fades, can cross-industry players lacking a coffee gene continue to attract customers? The fierce competition in the coffee market and the mismatch of consumption scenarios make such attempts full of uncertainty. This article sorts out typical cases of cross-industry coffee, analyzes the marketing logic behind them, and explores the challenges and hidden concerns this model faces. [more…]

Having been active on television screens for over twenty years, the health supplement brand Naobaijin has officially extended its reach into the coffee sector. Its first coffee shop opened on November 7 in Songjiang District, Shanghai, under the youthful sub-brand "Naobaijin+Café." The store not only continues the brand's signature blue visual identity and classic IP image, but also offers coffee, tea drinks, smoothies, and other beverage categories at affordable prices. In recent years, giants across various industries have ventured into the coffee business, from China Post to Li-Ning, Huawei, and NIO—coffee has become a popular choice for cross-industry expansion. Is Naobaijin's entry a path to rejuvenate its brand, or can it carve out a share in the fiercely competitive coffee market? This article will outline the features of Naobaijin's coffee shop and the industry trends in cross-industry coffee ventures. [more…]

China's coffee consumer base has expanded to approximately 300 million people, and the coffee sector continues to heat up, becoming a hot area of capital attention. At present, the number of coffee-related enterprises nationwide has reached 166,000, with more than 22,000 newly registered enterprises in the first nine months of 2022 alone, a growth rate of 36.4%. Surveys show that more than 90% of consumers have increased their favorability toward coffee products incorporating Chinese-style flavors. From instant and freshly ground to ready-to-drink, the three major categories each have their own advantages, among which freshly ground coffee has the greatest growth potential, with its market size expected to reach 190 billion yuan in 2024. Giants from various industries such as Li-Ning, China Post, and Huawei have entered the market across sectors, and the coffee industry is ushering in change, with young consumers gradually becoming the main force. [more…]

In the sweltering heat of summer, beverage consumption reaches its peak. On street corners and in alleys, young people are holding either tea drinks or coffee. But upon closer observation, one will find that new-style tea drinks and coffee are embarking on entirely different development trajectories: brands like Heytea and Nayuki are cutting prices, while Luckin Coffee and Starbucks are raising them. The coffee sector's popularity is soaring, with giants such as Huawei, Li-Ning, and China Post making cross-industry forays, intensifying competition to a fever pitch. At the same time, new-style coffee is increasingly resembling milk tea, with ingredients like cheese, matcha, and brown sugar crystal boba appearing frequently. This prompts the question: will new-style coffee repeat the mistakes of irrational involution in the new-style tea drink sector? This article will analyze from perspectives such as price changes, market positioning, and product innovation, and bring professional observations from Front Street Coffee. [more…]

In recent years, consumers' demand for personalized coffee has continued to rise, and many chain brands and independent cafés have rolled out customization options. Recently, netizens reported that Luckin Coffee has piloted a "drink DIY" menu in some stores, allowing customers to choose their milk base and even add extra milk or espresso. As soon as the news broke, Luckin fans cheered, "Roll it out nationwide, fast," while some employees worried that order volumes are already huge and that full rollout could leave them "run ragged." Meanwhile, on January 22, Luckin announced it had completed development of the core features of its HarmonyOS native app. Is this exploration of coffee customization a blessing or a burden? This article takes you through it. [more…]

China Post's application for the "邮局咖啡 POST COFFEE" trademark was recently rejected, sparking widespread attention. Since the first store opened in Xiamen in February 2022, Post Coffee has expanded to four cities—Xiamen, Nanjing, Quanzhou, and Beijing—with six stores, focusing on a blend of postal nostalgia and cultural creativity. The co-founder had planned to open a hundred stores by the end of the year, but the trademark registration setback has led to widespread discussion online. Meanwhile, giants from various industries such as Li-Ning, Xtep, Tongrentang, and East Buy have entered the coffee sector. What are the prospects for cross-industry coffee ventures? This article reviews Post Coffee's expansion journey, product features, and trademark controversy, and takes stock of cross-industry dynamics in the industry. [more…]

Luckin Coffee's Q3 2022 financial report is out: total revenue for the quarter rose 65.7% year-on-year to 3.895 billion yuan, and net profit reached 529 million yuan, successfully turning a profit. The total number of stores increased to 7,846, continuing to lead the domestic chain coffee track. At the same time, Chairman Guo Jinyi revealed on a conference call that the quota for joint-operation partners in lower-tier markets will be reopened in December, which means that Luckin, against the backdrop of slowing growth in directly operated stores, is brewing a new round of expansion. Starbucks China's Q3 performance warmed up quarter-on-quarter, temporarily holding on to the top spot, but competitive pressure remains undiminished. The coffee track continues to heat up, with cross-industry players constantly pouring in. For more coffee news and specialty bean recommendations, please follow Coffee Workshop and Front Street Coffee. [more…]

Following Li-Ning's launch of Ning Coffee, another sporting goods company has begun to stake out the coffee market. According to Qichacha, Xtep (China) Co., Ltd. has applied to register multiple coffee-related trademarks, covering categories such as food and beverage services and accommodations, convenience foods, and advertising and sales. In recent years, from tea beverage brands to time-honored traditional Chinese medicine brands, and from education companies to tech giants, cross-industry forays into coffee have emerged one after another. Is Xtep's move this time a continuation of its approach of innovating the in-store experience, or is it intended to open up an entirely new business territory? This article will review Xtep's coffee layout moves and look back at typical cases in recent years of brands from various industries crossing into coffee. [more…]

As the Mid-Autumn Festival approaches, companies are showing off their employee gift boxes, and Luckin Coffee's Mid-Autumn benefits have sparked heated discussions on social media. Unlike previous years, this year Luckin has set clear work-hour thresholds for gift box distribution: full-time employees receive them via unified delivery from headquarters, while part-time and student employees must meet cumulative work-hour requirements for June to August. The gift boxes contain items such as Bluetooth earphones, straw cups, and mooncakes, and their practicality has earned praise from many employees, with some even offering 120 yuan to buy them on second-hand platforms. However, employees at joint-operation stores and part-time workers who did not meet the work-hour threshold were excluded, triggering dissatisfaction among some employees. This article will sort out the gift box distribution rules, employee feedback, and the corporate welfare management issues reflected therein, and include related recommendations from Front Street Coffee. [more…]