Crazy Expansion! NOWWA Coffee Opens 120 Stores Simultaneously

NOWWA Coffee's Rapid Expansion

Recently, NOWWA Coffee announced on its WeChat public account that it was opening 120 stores at once. Besides strengthening its presence in first-tier cities like Guangzhou, the new batch reached second- and third-tier cities including Nanchang in Jiangxi, Jinhua in Zhejiang, Huangshan in Anhui, and Zhanjiang in Guangdong, among 10 cities in total. According to Jiemian News, by region East China accounts for 37% with 44 stores, while Central China has 30 stores, or 25%. Of particular note, 38 stores opened in third-tier cities, accounting for 32%.

Brand Strategy and Operations

NOWWA Coffee was founded in Shanghai in June 2019 under Shanghai Lixing Technology Co., Ltd. Like Manner and Luckin, it follows an affordable pricing strategy aimed at working professionals in their twenties and thirties. Prices center on 15 RMB, and it also offers tea drinks, baked goods, and merchandise. With affordable, convenient drinks, the brand rose quickly in the market.

Operationally, NOWWA has always leaned on online sales. Earlier data showed delivery channels accounted for over 75% of total revenue. A light-asset model is one of its hallmarks, and it is now on platforms such as Ele.me and Meituan. NOWWA can be said to have grasped exactly what young consumers want from coffee: affordable, tasty, convenient, and fast.

Strategic Collaborations

The brand also launches co-branded coffees with IP, commercial, and cultural partners. This year, for instance, it teamed up with the outdoor brand NORTHLAND on a new "Bottle Coffee," and with Chengdu's Chinese-style bun brand "Li Yubai" on a limited "Eat Green Buns, Keep Green 'Horse'" Chinese breakfast set, both drawing notable consumer attention.

The Booming Coffee Market

The coffee market has boomed for years. By 2025, China's coffee consumption market is expected to reach 1 trillion RMB. Store expansion speed reflects the heat of the sector, and most coffee chain brands in China have shown ambitions for large-scale growth.

Chain giants led by Starbucks and Luckin Coffee dominate with sheer store numbers. On September 27 this year, Starbucks announced the opening of its 6,000th store in mainland China. At an earlier investor exchange meeting, it planned to add 3,000 new stores in three years, meaning 9,000 stores by 2025. Besides these two, Manner, Seesaw, M Stand, NOWWA Coffee, and others also enjoy strong consumer support and are accelerating their expansion.

NOWWA's Impressive Growth

NOWWA has expanded through small express pick-up stores and a partnership model. In its first two years the store count stayed in single digits, but from last year it began growing exponentially. In June this year it opened more than 100 new stores at once, pushing the total past 1,500 and coverage past 50 cities. Now, less than half a year later, comes another 100-plus store opening announcement. Is it planning to open in units of 100 from here on?

Following Starbucks and Luckin, and according to the data, NOWWA ranked third among domestic chain coffee stores by total count as of July. It currently has more than 1,700 stores nationwide, covering over 100 cities, which works out to roughly 500 stores a year.

Keys to Success in the Coffee Industry

With young people's enthusiasm today, coffee is in a critical popularization period. The brands that stay at the front have clearly found the keys: quality products, affordable prices, and operating models suited to young consumers. More importantly, the founding team is full of passion for coffee and food and is willing to keep refining products from the customer's point of view.

Image source: Internet

FrontStreet Coffee Recommendation

For a brand built on affordable, everyday coffee, FrontStreet's entry-level beans match the spirit well. FrontStreet Sun-Dried Huakui from Ethiopia's Sidamo region is a traditional natural with berry, floral, jackfruit, melon, and honey notes, while the FrontStreet Washed Gudingding Cooperative delivers jasmine, lemon acidity, and berries in the classic Yirgacheffe washed style.

If you want an easygoing daily cup, FrontStreet's Cerrado Red Bourbon from Brazil brings the region's familiar cream, peanut, and cocoa flavors without a premium price.