In China, luxury fashion brands are opening specialty coffee shops within their stores in a bid to attract Gen Z and millennials – the main drivers of coffee consumption in China. This allows them to diversify their customer base and redirect clients back to in-person shopping in an era of online consumption.
In the early 2010s, Pacific Coffee was one of the most prominent names in the Chinese coffee market. Now, they face closures of hundreds of their stores.
The relationship is mutually beneficial, but some worry it could lead to a price war.
Many Chinese coffee shops have offered home deliveries since 2017. But during Covid-19, US coffee delivery orders exploded by more than 300%.
