International fashion brands eye China’s booming coffee market

International fashion brands in jewelry, handbags, and apparel are now eyeing opportunities in China's booming coffee market, starting to expand their businesses to cross-industry products and services. Chinese experts attribute the new market evolution to China's widening opening-up which has created vast opportunities for global corporations.

ROCK&RIDE, a US-based jewelry brand, told the Global Times on Tuesday that it has expanded its offerings this year by adding coffee services and a dedicated "coffee space," with its first coffee store officially launched in downtown Beijing.

The "coffee space" named ROCK&RIDE TASTE, was launched in August within Beijing's 798 Art District. Currently, ROCK&RIDE TASTE offers a limited menu of four beverages including three coffee options and one caffee-tea beverage, all served cold.

"China's coffee market is widely acknowledged for its vast growth potential. Coffee and tea are popular beverages globally, and the relationship between the two is not a zero-sum game in China." the CEO of ROCK&RIDE told the Global Times on Tuesday. 

"We believe that the growing demand for coffee in China doesn't necessitate altering consumers' existing beverage preferences. Instead, it offers an additional choice for consumption and experience," he said.

Recently, several international brands have shown a strong interest in China's coffee market, exploring cross-industry opportunities.

Vivienne Westwood operated its new caféat Beijing's Sanlitun Street on August 8. On July 28, Coach officially launched its first café in China, located in Shanghai's Huangpu district.

In response to market demand, another Vivienne Westwood café in Beijing is expected to open for business at the year-end, a representative from Vivienne Westwood Café told the Global Times on Tuesday.

Many consumers told the Global Times that the coffee products offered by the globally well-known brands are appealing to them. They enjoy the combination of their favourite fashionable brands with coffee, making it a must-have purchase.

"China's market is highly diverse, open, and inclusive. It's not just coffee but also tea beverage that has seen rapid growth in business," Bian Yongzu, executive deputy editor-in-chief of Modernization of Management magazine, told the Global Times on Tuesday. 

He noted that this growth underscores the strong adaptability of Chinese consumers, especially the younger generation to the evolving market trends.

Bian said that foreign brands' swift decision-making in China is closely tied to the country's commitment to sticking to high-level opening-up.

A recent report revealed that China's coffee industry reached 265.4 billion yuan ($32.29 billion) in size last year, with market projections estimating it to grow to 313 billion yuan in 2024. The industry's compound annual growth rate (CAGR) over the past three years reached 17.14 percent.

Additionally, the report stated that 930 million cups of coffee were consumed nationwide through delivery platforms. Over the past four years, coffee delivery orders have experienced a compound growth rate of 66 percent.

"The Chinese government is intensifying efforts to fully implement national treatment for foreign-funded enterprises. Initiatives like reducing the negative list for foreign investment, simplifying the investment process, and facilitating smoother capital flows have boosted the efficiency of foreign investment in China while cutting costs," Bian said.