Some time ago, Chinese media reported that the famous coffee chain COSTA had closed a large number of stores in China, and the number of closures accounted for 10% of the brand’s total stores in China.
Last week, COSTA China confirmed to media that it had closed some of the stores affected by the epidemic, but did not disclose the number of stores closed.
At the same time, the company told the media that it would try a completely different marketing strategy in China: omnichannel sales.
To put it simply, COSTA (China) there will be not only self-owned stores but also franchise stores in the future.
In addition, they will also set up self-service coffee machines in some areas of the city (transportation hubs, hospitals, etc.). At the same time, after being acquired by Coca-Cola, they also tried to sell ready-to-drink coffee in cooperation with shopping malls and convenience stores. As of June this year, COSTA’s ready-to-drink coffee had entered 100000 stores in China.
In June this year, they also launched a capsule coffee machine with JoYoung, a well-known soy milk maker in China, to extend COSTA’s business into consumers’ homes.
This omnichannel sales strategy was first used by Luckin, a Chinese coffee chain, through financing to sell cheap coffee in all channels. Under this fierce attack, Starbucks had to change its strategy in China and began to experiment with e-commerce sales and coffee delivery.