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Market Analysis in China: Coffee Shop Retail Chains in Beijing, Shanghai and Guangzhou

Recently, with many foreign brands entering China coffee market, coffee shop retail chains develop rapidly. Relying on its own characters, every brand successfully expand all over the country. As the number of consumers in China coffee market is growing up so quickly, the competition is far more intense than ever before. Our team of consultants in Beijing, Shanghai and Guangzhou conducted a survey to better understand the network of coffee shop retail chains in these cities, which represent three different areas, northern, eastern and southern China respectively. While few of results of this survey are included in this article, do not hesitate to contact us for more insights and information

For coffee shop customers in Shanghai, Beijing and Guangzhou, different expectation toward coffee consumption places

Through focus group of professionnels on China market, our expert designed a report about main attitude from citizens of those three cities. The data shows that 65.8% of Beijing citizens believed that it’s necessary to have a well designed coffee room with beautiful decorations. The atmosphere of the coffee shop is very important as well. Then, 65.8% of them do not pay strong attention to price. In Shanghai, people are giving more attention to the price. Also, they are rather more willing to pay for foreign brands than local ones. In Guangzhou, people often spent time in coffee shops in the afternoon to having some afternoon tea. They are, unlike Beijing and Shanghai’s consumers, more caring about the convenience of thge place. 67.8% of them care about if vacant parking spaces are available before they pick which coffee shop to enter, and 56.3% thought it’s not worth to spend much money on drinking coffee.

Coffee Shop Retail localization in Beijing, Shanghai and Guangzhou

So far to now, main customers of Costa coffee shops in Beijing are still people from foreign countries, and local people prefer products which are localized. They do not like to try things that they aren’t familiar with. Hence the location of new-opened coffee shop is generally localized in some streets where the flow of people is high. In Shanghai, the location must be picked at some places that are very quiet and elegant, far away from the noise area. Indeed, Shanghai’s consumer are expecting a more sophisticated consumption. In Guangzhou, first thing to considerate is the traffic. If the traffic is very convenient and the quantity is high, people would like to come all the time.

Different Tastes in China

Consumers in Beijing and Shanghai would rather try some sweet food than people in Guangzhou. Since the tea culture is so important in China, coffee shop retail managers can consider about combine two drinks. When Starbucks first entered Guangzhou, it release a new kind of drink—— Green tea coffee, and it get huge success.



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