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Category Analysis for Ingredient Supply in Coffee Stores in China

Client profile

Our client is a French chocolate manufacturer. In the context of a market expansion, the client wants to closely monitor the opportunities related to the portfolio of hot and cold beverages, mostly in coffee stores but also in any HORECA channel.

Objective

The client has especially identified the Chinese market as having high potential, as the company is already present in the country and is collaborating with stakeholders in the coffee/tea store industry. The application of its products is often adapted to specific needs and usage, especially through steps managed by OEMs.

The company aims to understand better the main driver of the current offer, the distribution network, the profile of B2B customers and the categories that could show the most growth potential. Therefore, they contacted Daxue Consulting to provide a research design answering a series of strategic questions for the brand.

Research process & methodology

Using our experience on similar projects and within the targeted industry, we re-organized the need for information into 3 main segments:

Step 1: Market mapping

Step 2: Downstream research – demand-side analysis

Step 3: Upstream research – supply-side analysis

We started with desk research and online data scrapping, which would help us contextualize the market and the growth opportunities according to the current network and stakeholders. This approach leads us to:

  • Market trends and consumer analysis
  • Competitive landscape understanding – introduction to main players of coffee/tea shops in China and segmentation
  • Application ranking – the aggregated benchmark of menus, top recipes and most used ingredients, nutritional claims and flavours

We then carried out interviews with coffee store managers and baristas in China. This gave us a comprehensive understanding of the usage and needs of the food service demand for beverage recipes in coffee/tea stores.

Just like in the demand-side analysis, we carried out interviews, this time with brand managers and moved to an online benchmark, which led us to the collection of the working hypothesis of current brands/competitors and the expected evolution of the offer.

Outcome

Our team delivered the recommendations and market research in the form of a report for the client to analyse the future steps in the Chinese market. Our report with the category analysis for ingredient supply in coffee stores in China covered the hypothesis on key market trends to capture as a supplier.