Brand cafes: less about coffee or earnings, much more about the selfie?

Brand cafes: less about coffee or earnings, much more about the selfie?

In the current consumption atmosphere that’s driven by selfies and social networking, a brandname coffee shop may be the ultimate playground.

Take a look at Chanel’s pop-up beauty themed Coco Coffee shop which opened up its doorways on June 10 in Causeway Bay. It’s been attracting lengthy lines that extended lower the block, using more than 30,000 posts with “#cococafe” hashtag on Instagram.

The recognition of brand name cafes isn’t brand-new but consumers’ elevated revolvement of the day to day activities around social networking has provided the idea another jolt. On the top of this, there’s the millennial position.

“All brands wish to catch the millennial. And millennials are extremely experience-driven and social-driven group.That they like to spend time personally and therefore are easier attracted right into a shop with a concept rather of merchandise,Inches stated branding consultant Jacqueline Alexis Thng, partner at Prophet.

The cafe or cafe’s social function, combined with brand’s personality would feed the more youthful crowd’s needs.

“I think the popularity [of cafes] is much more customer-driven, as clients are searching for additional encounters,” stated Mariana Kou, the Mind of China Education and Hong Kong Consumer at CLSA.

“And the prospective segments of coffee shop business coincide with a few brands’ original customer bases, quite simply, more female-focused.”

Fashion and sweetness and skincare brands happen to be exploring crossover companies for a long time to improve the conclusion. Many have opened up restaurants, hotels along with other side companies.

In Hong Kong, French fashion brand Agnès b opened up its first coffee shop in 2005.

I believe the popularity [of cafes] is much more customer-driven, as clients are searching for additional encounters

Mariana Kou, CLSA

The explanation to improve a brand’s touchpoints is understandable: give customers more good reasons to spend while increasing earnings, and just what brand marketeers want to say – supply the brand experience.

Even though many brands have diversified into a number of companies, not every them has got the sources to follow-through, especially when they’re capital and technology intensive anyway.

So cafes are frequently the best of diversification since the financial aspects are pretty straight forward and also the stakes are relatively low.

When Bulgari, the posh jeweler opened up its first restaurant and coffee shop in Tokyo’s upmarket Ginza district in 2007, nobody expected namesake cafes of Chanel, Gucci, Hermes, Alfred Dunhill and Furla to follow along with suit within the next couple of years.

Brand – and luxury brand – cafes appear to become of peculiar interest to consumers in Asia, based on coffee shop operators and analysts.

In landmass China, several brands for example Vivienne Westwood and innisfree have opened up coffee houses in 2015 as boutique sales still slide previously couple of years.

Veronica Wang, affiliate partner of management consultancy OC&C Strategy Consultants, believed that at any given time when individuals are more and more shopping on the web, cafes opened up across the street from the brands’ flagship boutiques may also drive feet visitors to the shops.

The Brand New You are able to brand, Kiehl’s opened up its first café on the planet in Taipei this month.

“In today’s retail landscape, customers have access to just about anything online. Therefore, physical stores must offer more,” stated Cheryl Vitali, gm of Kiehl’s Worldwide .

The cosmetic and skincare company stated another coffee shop would open in Beijing this November.

Vivienne Westwood coffee shop , which opened up in Hong Kong in 2015, a couple of several weeks after the first in Shanghai, stated the coffee shop introduced within an annual revenue peopleDollar1.3 million.

“We can’t say just how much traffic the coffee shop has attracted towards the Vivienne boutique shop next door…But it’s a win-win situation for the Vivienne coffee shop and also the boutique,” stated Baldwin Ko, the md from the Vivienne Westwood coffee shop in Hong Kong.

The explosive grocery store in companies because of economic growth may also lead towards the recognition of brand name cafes.

Based on market research by Unilever Food Solutions in 2014, over 85 percent of shoppers in China eat at restaurants at least one time per week. The growing personal incomes brought Chinese customers to become at ease with premium dining options, which fueled the country’s expenditure on foodservice by 8.1 percent to 799 billion yuan (US$ 117 billion) in 2014.

We can’t say just how much traffic the coffee shop has attracted towards the Vivienne boutique shop next door…But it’s a win-win situation for the Vivienne coffee shop and also the boutique

Baldwin Ko, Vivienne Westwood coffee shop

To date, there’s no quantifiable data around the impact of brand name cafes or its market price.

What’s visible would be the social networking engagements with consumers on digital platforms, but it might be difficult to pin lower when they brought to real paying for the brand’s non-coffee shop products is difficult.

The amount of selfies with a mug of latte from the brand coffee shop doesn’t quite work, nor will a high tea session.

But brands repeat the selfies and posts on social networking have helped.

“Instagram and Facebook have helped a great deal with this business,” stated Ko of Vivienne Westwood coffee shop. “My staff explained once the tea set arrives, most visitors would spend the very first fifteen minutes taking photos,Inches he stated.

CLSA’s Kou went a step further.

“What’s famous Asia is really and not the ‘coffee shop’ concept, however the ‘showing-off’ culture. It’s much more about taking photos and uploading for their social networking,Inches she stated.

“It’s hard to appraise the success without financial disclosures. We are able to only estimate from the amount of shops,” Kou stated.

“In relation to shop figures, Agnès b is extremely effective in Hong Kong.”

In France They fashion label has opened up 24 coffee houses and 23 chocolate shops in Hong Kong and Taiwan.

Peter Leong, Agnès b Asia-Off-shore gm, stated inside a 2013 interview using the South China Morning Publish, that cafes and restaurants were the focus of expansion moving forward for the organization.

“Agnès b’s coffee shop clients are much more effective than its apparels,” stated branding consultant Thng.