Why Are Industries Crossing Over into Coffee? Is Running a Coffee Business Really Easy? The Current State of the Coffee Industry

Cross-Border Coffee: Beyond the Criticism

Ever since China Post officially entered the coffee market a couple of days ago, the reactions have been remarkably uniform... "They can't even do their main job properly, why open a coffee shop?"; "China Post should be promoting tea culture, why are they making coffee?"; "They're just riding the specialty coffee trend when they clearly don't understand coffee!"

Yes, people seem quite dissatisfied with the postal service entering the coffee market. Most netizens feel that a state-owned enterprise should focus on its core business. Or as a state-owned enterprise representing China, why venture into a market of "foreign imports"?

The Cross-Border Controversy

Besides Post Office Coffee, nearly every store that crosses over into selling coffee faces rounds of questioning and even attacks... Beauty brands making coffee, clothing brands making coffee, Chinese and Western medicine brands making coffee, temples selling coffee... People seem to think that businesses should stick to their own industries. Why meddle in coffee when you clearly don't understand it? Isn't this lowering the quality standards of the coffee industry? But that's certainly not the case.

Cross-border coffee selling is nothing new anymore, and consumers need novelty, as does the industry. Cross-border expansion is an attempt to enhance consumer experience, both for the original industry and for the coffee industry itself. Moreover, many brands that cross over into coffee are merely experimenting, without elevating it to a strategic goal. For the coffee industry, the impact of cross-border coffee shops is quite limited. At least regarding the criticisms that they "will affect the quality of the coffee industry" and "damage the image of specialty coffee in consumers' minds," cross-border coffee shops feel helpless.

Misplaced Blame and Public Opinion

Coffee doesn't taste good? Blame cross-border coffee shops. The coffee industry has become a hotspot for social media check-ins? Blame cross-border coffee shops... Over the years, cross-border coffee shops have been made scapegoats for countless issues, and those who make them scapegoats are often people doing similar things. Because they can't compete, they resort to manipulating public opinion behind the scenes. In this already resentful online world, whenever people encounter topics that allow them to vent their "dissatisfaction," they join in the criticism, regardless of whether the issue actually affects them.

Quality and Expectations

Many people ask, will the coffee from these stores taste good? The purpose of cross-border expansion is to attract attention and use coffee as a medium to expand the market. Most people who visit cross-border coffee shops are there to check in, take photos, post on social media, and enrich their lives, not really for the coffee itself.

But is the coffee from these stores really not good? Not necessarily. At least for most ordinary consumers, the prices are reasonable, the photos turn out well, and the coffee flavor isn't unpleasant. Strength/tastiness are merely personal perceptions; there's no need to force everyone to discuss coffee quality on the same wavelength.

The Business Logic Behind Cross-Border Coffee

Other industries choose to cross over into coffee, undoubtedly making changes based on the social needs of most consumers. To some extent, this can be understood as simply giving customers another reason to visit physical stores. From the perspective of consumer habits, most people who spend time in coffee shops stay for a while. The longer customers linger, the more marketing and promotional opportunities the brand has. Simply put, cross-border coffee is just an excuse to draw people in.

Even without cross-border coffee, in this trillion-dollar coffee market, brands targeting different customer groups would emerge anyway. There will certainly be varying degrees of difference in coffee quality. There's no need to compare ten to twenty-yuan coffee with seventy to hundred-yuan coffee. Coffee is just an ordinary beverage that anyone can drink; there's no need to approach it from a professional angle every time. How exhausting!

The Positive Impact of Cross-Border Coffee

At least these cross-brand ventures attract more people to pay attention to coffee and consume coffee, which is undoubtedly not a bad thing. Putting aside whether it tastes good or not, at least it gives consumers another opportunity to consume/taste coffee. Perhaps this opportunity will inspire some consumers to want to understand coffee more deeply, thereby beginning to engage with and learn about coffee.

The Competitive Coffee Landscape

In the cruel "coffee race," there are no permanent winners. Today, brands specializing in coffee and cross-border coffee are blossoming everywhere. How to establish one's "moat" and maintain a foothold in the industry is a question that everyone in the coffee business needs to ponder deeply. Without personal effort and an open mindset, there will never be a day of success.

Image source: Internet

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