MILAN, July 30 (Class Editori) -- Two weeks ago, inside the Liuli Museum in Shanghai, opened the first Illy caffè.
Illy was founded in 1933 in Trieste. Illy caffè's presence in China dates back to 2006 with the establishment of a branch of the Trieste Coffee University and followed by an alliance with Caffè du Coral Group, a Hong Kong company, to continue the internationalization strategy and spreading of the brand.
In 2017 Luckin coffee was established in Beijing and, in the first six months of 2019, had already opened 600 points of sale for the sole takeaway distribution.
The formula of the sudden success until the listing on the Nasdaq on Wall Street is based on three pillars: digitalization, delivery and purchase options with progressive discount. The proof is that Luckin coffee has already 17 million consumers and, in its continuous innovation process, has undertaken a vending machine service which, through a localization app, allows the consumer to find a coffee shop in the area.
Moreover, the payment system is digital with a smartphone and even in the few "relax places" where you can physically order coffee you cannot pay by credit card or cash. In addition, in those "relax places" a small library is available, which can be used only through the app. The final project is Zero Human interaction.
We could dwell on this pushing model, that has certainly very little to do with Illycaffè's philosophy. It comes natural to wonder if, statistically speaking, the increase in annual coffee consumption in China from the current 10 to the 240 cups – the world's average – should go in the direction of Luckin coffee or Starbucks.
The latter, after the opening a Roastery first in Shanghai and then in Milan, has been working on changing its marketing strategy by offering a an additional product range – meant to attract consumers.
As for the other players in the Italian or foreign coffee segment, Nespresso of the Nestlè Group, present in China since 2017, is focusing on boutiques – 12 so far – and around 150 between corners and trade corners. Meanwhile, Lavazza makes its presence stand out through the home, catering and retail sectors. Among other things, the prices of the Korean Caffè Bene keep growing.
"Most cafes may not even be able to deliver when covering such a distance. Most consumers still prefer convenience, and content themselves with a sufficiently good drink," said Nils Weinsensee, founder of Cafe del Volcan, talking about the delivery factor – which, he believes, goes against coffee's very own nature.
It is undeniable that there is space to grow, and that the traditional Italian espresso is catching on – even if its aroma is considered too strong (and is thus still served as a double espresso) for the average consumer.
For Italian coffee to express its character the most, it needs physical places allowing the development of a different idea of consumption, associated with emotional tasting – just like in Italy. A good example is the famous Bianchi Patisserie in Nanking road which, during the 1920s (one hundred years ago), was serving Shanghai morning coffees and chocolate as well as other delicacies listed in the advertising poster.
In Shanghai, Illycaffè proposed a synthesis of the Italian lifestyle, and plays an important part in increasing the public perception of the Made in Italy. If it is true that the guidelines subtend the sector of premium hospitality, the extension of the product to all occasions of consumption – including at home – targets high quality consumers through sales in single-brand stores.
Whoever wants to succeed in China needs to focus on that same model of synthesis and harmonization between art, design, food and drink, characterizing the brand since the past.
(Source:Class Editori)
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A single purchase
