Who dominates the ups and downs of Sinopecs 300 billion coffee market?

category:Internet
 Who dominates the ups and downs of Sinopecs 300 billion coffee market?


92 # Coffee, one cup?

It is understood that at present, EasyJet coffee has launched three series of products: 92 # (black and white hand flush), 95 # (EasyJet drink), 98 # (classic coffee). CCTV financial reporters through the search for easy coffee Weixin small procedures found that the current online total of 15 drinks, is divided into three categories: black and white hand flush, easy to drink, classic coffee. In this regard, many netizens commented: feel full of gasoline odor.

From the pricing point of view, the price range of coffee is 12-28 yuan. Compared with other brands of coffee on the market, the price is more people-friendly.

Easy Jiemen Shop Halfway out, spread out is the Three Kingdoms Struggle for Hegemony

As we all know, the battle between Ruixing Coffee and Starbucks is in full swing. The market often compares the number of stores opened, the price of coffee, the sales volume and the profit of the two.

Now, Sinopecs Easy and Convenient Store is out halfway. From the number of stores, Sinopec Easy Convenience Store has a huge advantage. According to the latest data provided by Sinopec, up to now, Easy Convenience Stores in China have more than 27,000 stores, with the strongest front warehouse network in China. By contrast, according to the annual report of Ruisheng, as of the second quarter of 2019, there were 2963 coffee shops in Ruisheng. As of March 31, Starbucks had 3789 stores in China.

What about energy giant cross-border coffee? Is selling coffee more profitable than selling oil?

In fact, the gas station selling coffee is not unprecedented. In China, PetroChina has already established its own chain coffee brand, Hospitality Coffee, with a price of 18-33 yuan.

Overseas, the preferred convenience store of Royal Dutch Shell, an international oil giant, can sell 250 million cups of coffee a year. According to 21st Century Economic Report, Ko Yifan, executive vice president and President of retail business of Royal Dutch Shell Group, once lamented that coffee had a much higher profit margin than oil.

Ruisheng Coffees First Financial Report

Net loss in the second quarter exceeded 600 million yuan

In the coffee market, the earliest troublemaker was the Rachel Coffee, which was born in the sky. It opened its stores crazily all over the country and quickly went on the market 15 months after its establishment.

At present, how about the operation of Ruisheng Coffee? Recently, the company released its second quarter of 2019 results. The data, as expected by the market, are not very good.

Recently, Ruisheng Coffee released its first financial report after it went public. According to the financial report, the loss of Ruisheng coffee was further aggravated and expanded, with a total revenue of 909 million yuan in the second quarter, up 64.82% from 121.5 billion yuan in the same period last year, and a net loss of 681.3 million yuan, compared with 333 million yuan in the same period last year.

Yang Zixiao, Managing Director of Blue Lotus Capital Consultant: Losses may persist for a long time, because to increase stores, we need to try many new businesses, such as making Xiaolu tea, expanding overseas, and so on.

Ruishengs business competition model is actually a continuous burning of money to expand stores and capture users.

In terms of stores, as of the second quarter of 2019, the number of Ruisheng coffee shops reached 2963, an increase of 374.8% over the same period of last year; the average monthly sales of 27.6 million items, an increase of 589.7% over the same period of last year.

At the same time, while the companys business and user size explosive growth, the operating loss of Ruisheng Coffee dropped 31.7% from the same period last year to 55.8 million yuan, close to the break-even point of the store operation. By the third quarter of this year, the net income of Ruisheng coffee products is expected to be between 1.35 billion yuan and 1.45 billion yuan.

Wang Weina, chief analyst of catering and tourism industry of Huachuang Securities, said: The cost of getting customers is a problem that Internet companies will face. The later, the higher the cost of getting customers will be. But we must see that, on the one hand, because of customer retention and repurchase, the subsequent profit margin and operating efficiency will be improved; on the other hand, the new categories introduced by Ruixing are actually very effective. Every product, for the retention and repurchase of existing customers, is of great benefit, and in time, space and drink. With the scene above, they all open up their own space in all aspects.

On May 17, Rachel Coffee landed on Nasdaq for listing, with an issue price of $17. The opening price of Rachel Coffee jumped 47% and the closing price rose 19.88%. Since its listing three days ago, Ruisheng Coffees share price has been falling, falling below its offering price and stopped at $14.75, down 43% from its peak price on the day of listing, and its market value has evaporated by nearly $2.5 billion.

Yang Zixiao, Managing Director of Blue Lotus Capital Consultant: Ruixings stock price fluctuates greatly from top to bottom. It can be twice as high as low. This is a very typical first-class company that entered the secondary market prematurely. The core reason is that last years overall U.S. stock market was still relatively good, so some companies in urgent need of funds rushed to list at this time point, but after the listing, because they are still in the early stage, they can not achieve linear growth or linear loss, so they often lead to large fluctuations in performance. This has led to large fluctuations in stock prices.

Rachel Coffee has long been considered Starbucksmost powerful challenger in China. However, in terms of income, there is still a huge gap between the two. In fiscal year 2018, Starbucks realized revenue of $24.7 billion. The total revenue of Ruisheng coffee in 2018 was only 840 million yuan, or 125 million US dollars, or 0.5% of Starbucks.

At the same time, Starbucks is not indifferent to the crazy expansion of Rachels coffee. When it released its earnings report in April, Starbucks expected to open nearly 600 new stores in China in fiscal year 2019. As of March 31, Starbucks had 3789 stores in China, up 17% year-on-year.

In response, Ruixing plans to open 2,500 new stores in China this year, with a total number of more than 4,500 stores. By the end of 2019, it aims to become the largest coffee network in China in terms of number of stores.

Huang Jun, manager of China Merchants Securities Consumption Portfolio: The number of stores may exceed Starbucks by the end of this year. From the current revenue and profitability of Richter, it is still far from the traditional giant Starbucks. Judging from the current categories and some channels of new products, we should not compete directly with Starbucks. At present, the market is still very large, and it is still in a very early stage of introduction.

Domestic Coffee Consumption Potential is Great

The annual sales volume in 2020 may exceed 300 billion yuan

In fact, the coffee market in China is experiencing the stage of increasing popularity of ground coffee. For a long time, drinking ground coffee in coffee shops such as Starbucks was a fashionable thing. Under the influence of some brands, some people who used to drink instant coffee began to turn to freshly ground coffee.

Shenzhen citizen: For the most part, sitting in a place to drink coffee is basically about its environment.

Shenzhen citizen: Drinking coffee takes the environment seriously. Drinking coffee, making appointments with friends and sitting quietly for a while, I feel quite comfortable.

At present, Chinas coffee market is entering a stage of rapid development. According to the Ruisheng Coffee Prospectus, in 2018, Chinas per capita coffee consumption was 6.2 cups, compared with developed countries, Chinas per capita coffee consumption was only 1.6% of that of the United States. However, with the improvement of peoples living standards and the growing awareness of coffee culture, coupled with the huge demographic dividend, it will further stimulate domestic coffee consumption.