After Li-Ning, Will Xtep Also Enter the Coffee Market?

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Cross-Border Brands Innovate and Expand in Coffee Sector

Cross-border brand innovation and expansion in the coffee industry continue to refresh consumer perceptions, and now the coffee track welcomes another new cross-border player.

Recently, according to the Qichacha App, Xtep (China) Co., Ltd. has applied to register three "Tè Coffee" trademarks and three "XTEP COFFEE" trademarks, with international classifications for food and accommodation, convenient foods, and advertising sales. The current status of all trademarks is under registration application.

Cross-Border Coffee Trend Grows Across Industries

Data shows that as of August this year, 14 coffee financing events have occurred in 2022. More and more companies are crossing into the coffee sector, making it seem increasingly common for enterprises to engage in cross-border coffee operations.

First, catering and tea drink enterprises crossed into coffee. Qu Xiaomian's affiliated company Shejian Technology (Beijing) Co., Ltd. also applied to register multiple "COTTI" and "COTTI COFFEE" trademarks. Tea brands including Heytea, Nayuki, CoCo, Mixue Bingcheng, and Cha Yan Yue Se have all launched their own coffee products and brands.

Then even time-honored traditional Chinese medicine companies started opening coffee shops. Tongrentang launched "Punk Health Coffee." As a Chinese time-honored pharmacy with over 300 years of history, Tongrentang's cross-border move can be described as "bold" and "innovative." From a traditional Chinese medicine shop to a coffee shop, it may seem like a cross-border leap, but it also reflects competitive pressures and ambitions.

Major Brands Enter Coffee Market

The education company Yuanfudao Group's parent company invested in the coffee brand Grid Coffee, whose first store began trial operations in Wangfujing, Beijing. Then sports enterprises entered the coffee sector, with Li Ning crossing over to launch "Ning Coffee."

Li Ning could be considered a "pioneer." In April this year, Li Ning applied for the "Ning Coffee NING COFFEE" trademark. During the May Day holiday, when Li Ning's first store in Xiamen opened, Ning Coffee also officially debuted, but only as a "complimentary offering" - given away but not sold. Consumers receive a cup of Ning Coffee after spending over 499 yuan in the store. This seems quite sincere, but some netizens commented, "500 yuan for a cup, I can't afford it."

To date, Ning Coffee has appeared in several Li Ning stores in Xiamen, Guangdong, Beijing, and other locations, with nine varieties including coconut latte, classic Ning Americano, classic Ning latte, and South African oat latte.

Li Ning Company responded to media, saying, "We hope to optimize in-store services and enhance customers' comfort and experience during shopping. Providing coffee service in stores will be an innovative attempt by Li Ning to improve the retail terminal consumer experience."

Diverse Industries Join Coffee Trend

In addition to the above, Huawei Technologies Co., Ltd. applied to register the "Absorbing Cosmic Energy with a Cup of Coffee" trademark this May; Post Office Coffee, backed by China Post, began trial operations, and so on. From previous observations, major brand enterprises crossing into coffee mostly leverage their store advantages to increase appeal to younger consumers and break traditional consumption concepts.

Now this new entrant—Xtep, as a physical retail giant, seems to have already begun trying its hand in the coffee sector. In July, the official WeChat public account "Pu'er Tea and Coffee" of the Pu'er City Tea and Coffee Industry Development Center published a post titled "Coffee Shop in the Space Museum! Manya Coffee Xtep Store will open on July 16th," introducing the cross-border cooperation between Pu'er Xtep Children's Store and Manya Coffee.

Future Prospects in Competitive Coffee Market

Nowadays, major brands are enthusiastic about coffee because entering the coffee business today is similar to opening bubble tea shops two years ago. The barrier to entry is not high, the supply chain is mature, and service providers can offer complete equipment and products to help merchants quickly achieve standardized operations. However, standing out in the fiercely competitive coffee market is not easy. As a brand enterprise focused on clothing, shoes, and hats, whether Xtep can become a "rising star" in the coffee sector remains to be seen by consumers.

Image source: Internet

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