On September 3, Ruixing Coffee held a media communication meeting.
Editor’s note: This article is from Economic Observer Network, author Zheng Xinxin.
On September 3, Ruishen Coffee (Nasdaq: LK) held a media communication meeting to announce the independent operation of its sub-brand “Xiaolu Tea” and launched the industry’s first new retail operation partner model.
Liu Xing coffee chief operating officer Liu Jian said that the sales of Xiaolu tea series products in April this year far exceeded expectations. In order to better develop the tea market, it is decided to split the Xiaolu tea brand to operate independently and open the Xiaolu tea shop nationwide. The company will continue to maintain high growth in the coffee business while making new teas another important player.
According to Liu Jian, Xiaolu Teahouse and Ruixing Coffee Shop will complement each other. On the product, Xiaolu Tea Shop will also sell Ruixing Coffee’s full range of Master Coffee products, but it will be more abundant in tea products. At the same time, Ruixing Coffee’s stores will continue to sell some classic Deer tea products; Shangyu, Xiaolu tea shop will focus on leisure scenes, Ruixing coffee shop will focus on office scenes; in the city distribution, Xiaolu tea will focus on the second and third line cities, Ruixing coffee will focus on first and second line cities.
In the media communication meeting, Liu Jian also announced that in order to cooperate with the development of Xiaolu tea shop, Ruixing Coffee will launch a new new retail partner model. Different from the traditional franchise model, Xiaolu Tea’s new retail partner model has six advantages: zero franchise fee, shared risk, super brand, rich product, global traffic support, and digital operation. Through the new retail model and digital operation of Ruixun Coffee, the new retail partner model can not only effectively control the service quality, but also greatly reduce the investment risk of the partners, and at the same time bring a higher return on investment for the partners.
Liu Jian pointed out that with the independent operation of the Xiaolu tea brand and the implementation of the new model, Ruixun Coffee will cover more cities, and it is believed that there will be significant improvements in the number of customers, frequency of consumption, and efficiency of stores.