Cross -section | Total revenue is only 300 million, Ruixing quickly counterattacked Starbucks?

New Yellow River Reporter: Zhang Bo

A few days ago, Ruixing Coffee released the second quarter financial report, plus the results of the first quarter, revenue achieved "profit" for two consecutive quarters. From this point of view, the giant who has been having a long -standing financial incident seems to have gone out of the haze.

At the beginning of this month, data released by another coffee giant Starbucks showed that in the second quarter, its revenue in the Chinese market was about 3.636 billion yuan, which was only about 300 million yuan more than Ruixing Coffee. %. The reporter noticed that at the end of last year, Ruixing Coffee's total number of stores in China exceeded Starbucks.

Some media believe that in accordance with this trend, Rui Xing may overtake Starbucks in the third quarter and settle in the domestic coffee market. Whether Ruixing, who has been established for more than 4 years, can win the 51 -year -old Starbucks, is worth looking forward to. But at the same time, now the coffee track has ushered in multiple entrants, and the competition is more intense, and the two strong situations are facing challenges.

The revenue is only 300 million yuan, Starbucks has shown all the situation

Ruixing Coffee's financial report shows that the company's total net income in the second quarter reached 3.299 billion yuan, an increase of 72.4%year -on -year. The net loss is 115 million yuan. If the equity incentive fees and reserves are peeled off, the Non-GAAP (non-US accounting standard) caliber, Ruixing Coffee achieves net profit in the second quarter. Simply put, Ruixing's losses this quarter are not in business, but because they have returned their old accounts.

On the other hand, Starbucks, which announced earlier financial reports, has a total revenue of US $ 8.15 billion during the reporting period, but the revenue of the Chinese market is US $ 540 million, equivalent to about 3.636 billion yuan, which is only about 300 million yuan more than Ruixing Coffee. In China, in China, in China The market's single -quarter revenue fell 40%. In this regard, Starbucks related personnel have attributed this to the affected affected. This statement is obviously unbelievable, because Ruixing, who is also a two -coffee giant brand, has achieved the trend of rising against the trend at the same time.

Not only in terms of business capabilities, but also confirmed at the store level. Data show that in the second quarter, Ruixing added 615 stores, with a total number of 7,195, which has far surpassed 5,761 domestic Bucks in China. Ruixing's self -operated store sales growth rate reached 41.2%, and the profit margin of the self -operated stores reached 30.6%.

Aside from the performance, Starbucks's micro -mate may not be separated from the decline in wind reviews. Now Starbucks is facing a similar trust problem with Ruixing Coffee. According to a rough statistics from Xinhuang River reporters, in the first half of this year, Starbucks successively appeared on topics such as "driving away the police at the door", "price increase" and "consumer drinking foreign objects", and appeared on various hot search lists. Compared to the financial fraud exposed by Ruixing in 2020, consumers seem to not buy Starbucks' accounts. Some netizens joked, "What does financial fraud have to do with me and do not affect me and drink a more than a dozen dollars. iron".

In April 2020, Ruixing Coffee had exposed financial fraud, which once caused external uproar, and even sentenced to "death penalty" directly. On the evening of May 19 of that year, Ruixing issued an announcement saying that it had received a notice from the Nasdaq Exchange to ask for delisting from Nasdaq. After that, the report was reported, and the reporter noticed that in February this year, Ruixingfang said that it had performed a civil penalty of US $ 180 million (about RMB 1.2 billion) of the reconciliation agreement with the US Securities and Exchange Commission.

As the two strong companies in the coffee industry, the young Ruixing has been chasing. And some media analysis, if the existing situation in the second quarter, Ruixing is expected to overtake Starbucks in the third quarter and settle in the throne of domestic coffee first. However, in the face of more and more people entering the coffee track, Ruixing's pressure is not small.

The number of stores is leading, what kind of counterattack does Ruixing rely on?

New Yellow River reporter learned that as of the end of 2021, the total number of Ruixing Coffee stores reached 6024, which had more than 5,557 data from Starbucks China, with 467 more. As of the second quarter of this year, the gap was further widened, and this value became 1434. From being judged to go bankrupt to achieve profitability, what did Rui Xing go right? The analysis of industry insiders mainly benefits from the continuous launch of explosive products, the continuous expansion of stores, and the increase in the number of trading customers.

In the eyes of some observer, the reason why Ruixing can reverse the trend is to reshape the brand influence. After a financial fraud, Rui Xing has been trying to restore corporate reputation. For example, the debt reorganization was completed in the first quarter of this year. Secondly, the company has also established a sustainable development committee, which will subsequently release a corporate governance report, which aims to let the parties understand the efforts and progress of Ruixing Coffee in internal management.

At the execution level, it can be divided into products and marketing. It is said that in the second quarter alone, Ruixing launched 34 new products, of which Coconut Cloud has sold more than 24 million cups from the launch of the iron from April to the end of the second quarter. There is a vertical self -media post saying that Ruixing Coffee pursues the "data principle" within the internal of Ruixing Coffee. According to his person in charge of Ruixing Coffee, Ruixing attaches great importance to the product sales data, especially the highly popular brand. In the later period, it will be re -combined in the later stage. Research and development of new products. Posted the market through a new way of lightning, allow the market itself to test, and then achieve the rapid iteration of products according to the market response.

Practice has proved that this approach has achieved certain results. The data shows that the average monthly trading customer in the second quarter increased by 68.6%compared with the same period last year to 20.7 million.

In addition, Ruixing is also good at marketing. According to media reports, Guo Xing Coffee Chairman and CEO Guo Jinyi mentioned the two "breaking circle" marketing cases at the first quarter financial report meeting, namely "Gu Ailing Winter Olympics Marketing" and " Coconut Cloud Latte ". New Yellow River reporter retrieval learned that as early as September 3 last year, after officially announced that Gu Ailing was a brand spokesperson, Ruixing developed two special drinks, named Ski Latie, Snow Snow Latte, and launched in January this year. Essence After Gu Ailing succeeded in winning the championship, it realized the transformation of attention through social media, elevator advertising, and offline store linkage. An Internet marketing practitioner who was unwilling to disclose his identity told reporters that a large number of sources of customers who were developing through subsidies in recent years also contributed. After the outbreak of the fraud crisis, due to the price advantage and the inadequate replacement in the store's location, the consumer group did not have a large area of ​​loss. Recently, through new products and marketing methods, the user group has been further expanded. "In terms of marketing, traffic is king, traffic can bring users or realize it. It is the basic disk of Ruixing's counterattack. "

Coffee track competition tends to be fierce

For a long time, Ruixing Coffee has also actively aimed at the sinking market, but this road is destined to go. In February last year, Ruixing opened a sinking market store for third- and fourth -tier cities to join. Although Ruixing said that he did not charge any form of franchise fees and did not make it for the loss of the store, the cost of opening the store was still not low. According to media reports, taking prefecture -level cities as an example, including decoration costs, equipment operating fees, raw materials, and marketing expenses, the total expenses of franchisees in the first month are approaching 300,000 yuan. Prior to this, Ruixing tried to open the sinking market with the little deer tea brand, but the overall effect was not good. Later, the brand merged into Ruixing. Some Xiaolu Tea franchisees said that the problems facing the store were mainly due to excessive dependence of passenger flow and could not be transferred to profit.

The biggest competition facing Ruixing in the sinking market now comes from the tea brand Mi Xue Bingcheng. At present, Mixue Bingcheng Store has 10 yuan a cup of "coconut latte", which is more advantageous in terms of price than Ruixing, not to mention the basic market of Mixue Bingcheng is also sinking the market.

Overall, this track has now become "crowded". As the brands are competing to enter the game, competition seems increasingly fierce. Public information shows that the size of the Chinese coffee market in 2020 reached 55.2 billion yuan, and the market size is expected to exceed 100 billion yuan in 2023. From the perspective of the latitude of the per capita consumer coffee, there is still much room for growth in the domestic market. Therefore, the coffee track is also the "Xiangxiang" of the new consumer investment field. According to statistics, in 2021, the Chinese coffee market has been invested in 27 capital investment, with investment and financing amount exceeded 17 billion yuan, and the amount of financing has a new high.

Traditional coffee brands like Ruixing and Starbucks are as busy "horseshomes" as many years ago, and increase the number of store opening. In the context of the stock market in the first and second -tier cities, competition spreads to the third and fourth -tier or fourth -tier line or Smaller cities. Coffee brands such as Nowwa, Timhortons, MannerCoffee and other coffee brands have also stepped up in many places. At the same time, there are no lack of tea companies such as Mixue Bingcheng in cross -border entry, and there are also Chinese Posts, PetroChina, Sinopec, Wanda, Li Ning, Tongrentang and other companies. They have also sold coffee for offline stores.

Those who enter the bureau and the low threshold means that if they cannot occupy a certain share in the emerging market, they will not be able to break through among many participants, and they will soon be eliminated by the market. How to make good use of your own advantages and use the correct market strategy and then establish a competitive barriers, it is undoubtedly a problem that all companies, including Ruixing Coffee, must consider. What is the final game, let's wait and see.

Edit: Weekend

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