AEON JUSCO Introduces Popular Japanese Coffee Brand to China! Is KOMEDA Coffee Good?

AEON Partners with KOMEDA to Enter Hong Kong Coffee Market

According to media reports, AEON recently announced a collaboration with the Japanese coffee brand KOMEDA to launch specialty stores in Hong Kong, with the first store opening on the 21st. Dao Wude, Chairman of AEON's Administrative Department and Corporate Finance Department, said the plan includes opening at least 10 stores in Hong Kong within the next three years.

That includes converting space inside existing AEON General Merchandise Stores (GMS) and supermarkets into KOMEDA outlets, as well as seeking suitable locations in shopping centers for new stores. The group will also continue to focus on development in the Greater Bay Area, aiming to increase its mainland store count from 136 at the end of March this year to 280.

AEON's Retail Empire

AEON Supermarket belongs to the AEON Co., Ltd. Group, established in September 1926. It is a leading comprehensive retail and service enterprise group in Asia, with three major headquarters systems in Japan, China, and Southeast Asia. Primarily engaged in shopping centers and comprehensive retail operations, the group also runs specialty stores, financial services, property services, and convenience stores. Today AEON has approximately 300 companies and 19,094 stores worldwide, nearly 500 of them in China. It is one of Asia's largest department store retailers, ranking 100th on the Fortune Global 500 list in 2021. Since expanding into Hong Kong in 1985 and Guangzhou in 1996, AEON China has been accelerating the overall growth rate of the AEON Group in China under the guidance of group strategy.

KOMEDA'S Coffee: A Japanese Coffee Institution

KOMEDA'S Coffee is a full-service coffee chain originating from Nagoya, the birthplace of Japanese coffee shop culture. Since its establishment in 1968, it has become hugely popular in Nagoya. Its mission is to offer customers "the perfect place to relax," letting them enjoy their daily coffee moments with peace of mind as if they were in their own living room, and it is dedicated to creating a comfortable space that feels like a family living room.

As of the end of February, KOMEDA'S Coffee operated 896 stores in Japan, making it a genuine veteran of the Japanese coffee scene. Its store count ranks second only to Starbucks and Doutor, making it the third-largest coffee chain brand in Japan.

Retailers Entering the Coffee Market

Facing China's rapidly developing coffee track, many supermarkets and convenience stores, with the advantage of thousands of locations, are testing the waters by launching or introducing coffee brands. According to incomplete statistics, 12 major convenience chains including FamilyMart, Lawson, 7-ELEVEn, Meiyijia, and C-Store have launched at least 13 coffee brands, with prices ranging from a minimum of 6.9 yuan to a maximum of 24 yuan.

Just last month, Joyou, the convenience store chain of Sinopec gas stations, also collaborated with Tims Coffee to launch two new ready-to-drink coffee products, sold in Joyou stores nationwide.

Tims Coffee officially entered the Chinese market in February 2019, opening its first store in Shanghai. Since then it has been expanding through independent brand stores. At the end of last year, Tims stores moved into Metro supermarkets, opening smaller-format Tims Go outlets inside the stores, perhaps targeting the daily consumer groups that shop there.

The Growing Coffee Market Landscape

In recent years the coffee market has been booming. In major shopping centers, a diverse lineup of brands such as Starbucks, Pacific Coffee, and Peet's Coffee is now commonplace. Physical retail stores introducing coffee brands enhance the shopping experience while improving convenience, extending customer dwell time, and increasing foot traffic.

Coffee brands entering supermarkets already come with their own traffic. Combined with the large, stable customer flow in supermarkets, whether they focus on coffee or primarily on beverages, desserts, and leisure, they can attract a group of customers.

In China's current coffee market, though, with the number of coffee brands growing and competition fierce on this crowded track, how many of them will survive in the long run?

Image source: Internet

FrontStreet Coffee Recommendation

New chains entering the market raise the bar for everyday drinkers, and the beans behind the counter matter just as much. If you are exploring specialty coffee at home, FrontStreet's entry-level range covers the major origins. From Ethiopia, the sun-dried Huakui and the washed Gedingding Cooperative are the classic Yirgacheffe expressions, with jasmine, lemon, and berry notes; from Brazil, the Cerrado Red Bourbon is an easygoing, affordable daily drink with cream, peanut, and cocoa flavors.

Indonesia's Lindong Mandheling, made with the wet-hulled process, is denser and creamier than many alternatives, carrying herbal and spice notes for anyone who prefers no acidity. Colombia Huila offers soft florals and gentle fruit acidity, while Costa Rica's honey-processed Blackberry and Mozart bring raisin and blueberry sweetness with a rose and osmanthus aroma.

If you want to go further, Yunnan small-lot and the 2013 Yunnan Typica deliver nutty, red-sugar, black-tea character, and Panama's Boquete washed Geisha is an accessible way to taste the jasmine, green tea, honey, and citrus that made the variety famous.