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

Cross-Border Brands Innovate and Expand in Coffee Sector

Cross-brand innovation and expansion in the coffee industry keep refreshing what consumers expect — and now the coffee track has welcomed yet another new cross-border player.

Recently, according to the Qichacha App, Xtep (China) Co., Ltd. applied to register three "Tè Coffee" trademarks and three "XTEP COFFEE" trademarks, under international classifications covering food and accommodation, convenient foods, and advertising sales. All of the applications are currently still pending registration.

The Cross-Border Coffee Trend Grows Across Industries

The numbers tell the story: as of August this year, there had already been 14 coffee financing events in 2022. More and more companies are crossing into coffee, to the point where a brand dipping its toes into the coffee business barely raises an eyebrow anymore.

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

Then even the time-honored traditional Chinese medicine houses started opening coffee shops. Tongrentang launched its "Punk Health Coffee" — a genuinely bold and inventive move for a pharmacy brand with more than 300 years of history. From herbal dispensary to coffee counter may look like a giant leap, but it speaks to both the competitive pressure these legacy brands face and the ambition they still carry.

Major Brands Enter the Coffee Market

The parent company of the education firm Yuanfudao Group invested in the coffee brand Grid Coffee, whose first store began trial operations in Beijing's Wangfujing district. Then came the sportswear companies, with Li Ning crossing over to launch "Ning Coffee."

Li Ning could fairly be called a pioneer. In April this year, the company filed for the "Ning Coffee NING COFFEE" trademark. During the May Day holiday, when Li Ning's first store in Xiamen opened, Ning Coffee made its official debut — though only as a complimentary offering, given away but never sold. Customers receive a free cup of Ning Coffee after spending over 499 yuan in the store. It sounds generous, but as one netizen quipped, "500 yuan for a cup of coffee? I can't afford it."

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

Li Ning told media: "We hope to optimize in-store services and enhance customers' comfort and experience while shopping. Providing coffee service in our stores will be an innovative attempt by Li Ning to improve the consumer experience at the retail level."

Industries of Every Stripe Join the Coffee Trend

Beyond all that, Huawei Technologies Co., Ltd. applied to register the trademark "Absorbing Cosmic Energy with a Cup of Coffee" this May, and Post Office Coffee, backed by China Post, began trial operations as well. Judging from everything we've seen so far, big brands crossing into coffee mostly lean on their store networks to appeal to younger consumers and break out of traditional consumption patterns.

Now the newest entrant — Xtep, a physical retail heavyweight — appears to have already tested the waters. In July, the official WeChat account "Pu'er Tea and Coffee," run by 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 collaboration between Pu'er Xtep Children's Store and Manya Coffee.

Future Prospects in a Crowded Coffee Market

Why is everyone so keen on coffee? Because opening a coffee business today feels a lot like opening a bubble tea shop did two years ago: the barrier to entry is low, the supply chain is mature, and service providers can supply complete equipment and product solutions that let merchants reach standardized operations almost overnight. Standing out in a fiercely competitive coffee market, however, is another matter entirely. Whether Xtep — a company built on clothing, shoes, and hats — can become a genuine rising star in coffee is something only consumers will decide.

Image source: Internet

FrontStreet Coffee Recommendation

Plenty of brands are chasing the coffee trend, but great coffee still starts with the beans. For drinkers who favor body over acidity, FrontStreet Coffee's Indonesia Mandheling is a classic: processed with the traditional wet-hulled method developed for Sumatra's rainy climate, it brews up noticeably richer and smoother than most, with herbal and spice undertones that suit anyone who dislikes sour cups. Step up to the FrontStreet PWN Golden Mandheling and you get a lot that has been hand-selected three times plus once by machine, driving the defect rate down to a minimum for an even cleaner, silkier cup with clearer woody and caramel notes.

If you'd rather taste what Chinese coffee can do, the FrontStreet Yunnan Small-Bean is a washed lot from Baoshan with the familiar comfort of nuts and chocolate in a soft, balanced cup — an easy daily drinker for the office, and a reminder that behind every coffee trend story, it's still the bean in the cup that counts.