Ruixing Coffee has quietly built a discount mall in its App and Mini Program.
In addition to snacks, nuts, and coffee peripherals, you can also buy Apple headphones, mechanical keyboards, electric toothbrushes, bento boxes, and even canvas bags and hand soap.
The key point is that it continues its consistent subsidy policy: AirPods2 headsets at the original price of 1,246 yuan, after various tens of billions of subsidies and discounts, the lowest prices in Jingdong and Pinduoduo are 999 yuan and 859 yuan, respectively. However, Rui Xing only sold for 799 yuan. Ruixing called it “super subsidy” .
On March 23rd, Ruixing launched “Sakura Shopping Festival · Digital Week”, and put out dozens of digital products, 100 discounts over 999. “Explosives straight down” and “limited time spike” words on the e-commerce platform have also been moved to this coffee-selling app.
Someone asked: After selling coffee and snacks, now I just sell digital clothing. Ruixing is trying to grab e-commerce business?
In the past, people always took Ruixing to benchmark with Starbucks. Later, Ruixing launched unmanned vending machines to sell small goods, and some people began to compare it with convenience stores. Now, it simply sells digital and apparel. Although not yet large, this is another market.
Is Ruixing changed? This company, which successfully went public in the United States in just 18 months, is calculating.
Discount in coffee
The mall is located on the first-level entrance of Ruixing App. It is not only juxtaposed with “Swiss Cost-effective Unmanned Vending Machine” on the homepage, but also juxtaposed with “Menu” and “Shopping Cart” on the bottom menu bar. It is called “Chaopin “.
Homepage of Ruixing Coffee “Chaopin”
The page of Chaopin is almost the same as the e-commerce website. Homepage banner, explosives area, spike area, recommended product flow, core elements are everything. The homepage also displays “Ruixing Self-support” and “7-day worry-free return and exchange”.
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The products on the shelves are divided into six categories by Ruixing: coffee peripherals, digital accessories, online red snacks, Ruixing nuts, epidemic prevention supplies, luggage and clothing. Coffee mugs are basically mugs, thermos cups, accompanying cups, etc. Net red snacks and Ruixing nuts are Ruixing ’s own light snacks, and there are not many types of products for epidemic prevention and luggage. The focus is on digital accessories.
Ruixing coffee “chaopin” classification
Under the category of digital accessories, Rui Xing sells third-party big names, with at least ten items and dozens of sku. For example, AirPods2 headphones, BeatsX in-ear headphones, Lofree mechanical keyboard, Mipow sonic electric toothbrush, Monbento bento box.
These digital accessories were launched by Rui Xing as a “Digital Week” event on March 23 and enjoy a discount of 999 minus 100. Among them, AirPods2 and AirPods Pro are the two drainage products promoted by Ruixing. They have adopted the strategy of limited sales, limited to 300 and 100 units per day, while stocks last.
Comparison between JD.com and Pinduoduo. You can find that the lowest price of AirPods2 in JD.com is 999 yuan, the lowest price of Pinduoduo is 859 yuan, and Ruixing is 799 yuan. After these two products were put on the shelves, they were sold out as soon as they were snapped up.
Rui Xing, Jingdong, Pinduoduo price comparison
The mall already has a product evaluation function, but there is currently no customer service available for consultation. Compared with the flagship stores that Ruixing opened in Jingdong and Tmall, Ruixing has its own appThe product categories in the Mini Program Store should be richer. JD.com and Tmall flagship stores only have a small number of coffee cups and snacks on sale, and the options are very limited.
The customer service of JD.com and Tmall flagship stores told Ran Cai that the default delivery is Zhongtong Express, which does not support other express delivery. Orders will be shipped within 48 hours. Ran Caijing visited a Ruixing coffee shop in Beijing’s Fangzhuang area. The clerk said that the types of peripheral products sold in the store are limited. Digital accessories must be purchased online.
An industry insider told Ran Finance that Ruixing Chaopin’s e-commerce orders are shipped directly from the e-commerce warehouse. Currently, it is working with Zhongtong, and it is a different model from coffee takeout.
Ruixing Chaopin order settlement page
Obviously, in addition to the ready-to-delivery channels in the same city, Ruixing has built a set of e-commerce channels for express delivery, which are two relatively independent systems.
In terms of location layout, the discount mall and the coffee order single area are two relatively independent sections. In order settlement, the page shows that the two systems are completely different. The order entered through the coffee menu is taken through the take-out delivery or self-collected settlement system, while the order entered through the tide product is taken through the e-commerce express settlement system.
This means, In the Lucky Coffee App, you can not only order takeaways, but also shop.
What medicine is sold in gourd?
The transition takes place in the second half of 2019.
In November, Ruixing App independently launched the “Ruixing Chaopin” section and added a “Ruixing Chaopin Recommendation”. At that time, the product categories were very limited, only coffee cups. Almost at the same time, Ruixing announced the launch of Ruixing Nuts, the first batch of five cashews such as durian, mustard, and nori, and launched on the Ruixing Coffee App, Mini Program, and third-party e-commerce platforms, and sold nationwide.
On December 10th, Ruixing launched 6 new trendy products, mainly cultural and digital products such as ballpoint pens, calendars and radios. February 2On the 4th, Ruixing launched 5 “anti-epidemic materials”, disinfectant and hand sanitizer. Then on March 23rd, Ruixing launched the “Sakura Shopping Festival · Digital Week”, which not only increased the number of skus of the products, but also increased the promotion and subsidies.
Setting the AirPods2 at the lowest price of 799 yuan on the entire network, and the strategy of reducing 100 by 999, is a good signal that outside of coffee, Ruixing is trying to create explosive products for its trendy mall drainage.
A convenience store entrepreneur’s analysis of Ran Finance and Economics, Rui Xing’s motivation for doing e-commerce is to monetize traffic . In the past, Ruixing has accumulated a large number of users through crazy marketing and continuous subsidies. Coffee may be just a drainage product. In addition to coffee, Ruixing can continue to expand its categories and even introduce e-commerce models.
From the perspective of product tonality, Ruixing Chaopin continues its youthful, fashionable and trendy style. For example, digital products, headphones are Apple AirPods and Beats Solo Pro, mechanical keyboard is Lofree, bento box is Monbento, all are simple cultural routes. There are only two canvas bags, one is the theme of the 50-year lunar exploration, and the other is the “撩” theme in cooperation with Feng Tang.
Rui Xing previously hired Liu Haoran and Xiao Zhan as spokespersons for the product. The user groups targeted were mainly post-90s and post-00s. Fans who follow the stars and become users of Ruixing can not only contribute revenue to Ruixing in categories such as coffee light food, but now the category has greatly expanded.
Picture / Visual China
A VC investor believes that Ruixing is not doing e-commerce in the true sense, it is more about coffee. “These are some of their core users’ identity products The demand is for derivatives around coffee, similar to Starbucks. “
In addition, the above investors are not optimistic about Ruixing as an e-commerce company. “What you can’t do is just measure. Every company has its boundaries.”
Actually, Starbucks does make some peripheral products around coffee, such as light food, cat claw cups, etc.. But today, Starbucks has not launched digital accessories and luggage apparel products. Starbucks has been making peripherals, but Ruixing has obviously broadened the boundaries of peripheral products.
An investment agency partner told Ran Cai Finance, “ Selling these products is mainly a sign of GMV and partial capital operation. ” In his view, Ruixing tried to go beyond coffee. Find more ways to boost revenue.
But in any case, everything seems prepared.
Since May 2019, Ruixing has successively applied for the registration of trademarks such as Little Deer Cultural and Creative, Little Deer Chaowan, and Ruixing Chaowan. Prior to the launch of Ruixing Chaopin in November, Ruixing will quickly Xingchaopin has applied for 23 trademark categories, and since December, it has applied for another 10 categories.
Perhaps for Ruixing, the tide product section of the online e-commerce form has already been written in the script.
Who will pay for Rui Xing’s dream?
Ricky ’s investor, Dashang Capital, used to use the term “new species” to describe the company. In fact, to this day, many people still say they don’t understand it.
In the past, people thought it was a powerful challenger for Starbucks in China, but later found that its real opponent seems to be a convenience store. Now, if you look closely, you find that it also has a miniature version of NetEase.
Before the listing of Ruixing, there was a roadshow PPT of Ruixing circulating in the industry, which mentioned that Ruixing’s vision is “starting from coffee and becoming a part of everyone’s life”. In other words, Ruixing believes that it is not just a coffee maker, it believes that it can meet the multi-faceted needs of users.
Ruixing listed such a formula in PPT: Ruixing Coffee = Starbucks + 711 + Costco + amazon . The specific explanation is that Ruixing Coffee is a hybrid. Its vision is to have the same quality coffee and food as Starbucks, a channel network like 711, an attractive selection of low-cost products like Costco, and a technology-driven one stop like Amazon. Shopping platform.
Ruixing Coffee Roadshow PPT circulating in the industry
From the current situation, Ruixing was telling the story of Starbucks + 711 in the past. The superposition of these two stories made Ruixing’s market value once exceed $ 10 billion. Now it’s starting to tell its third story, Costco’s selection of low-cost retail stories.
Li Hui, Ruixing ’s largest institutional investor and founder of Dasao Capital, once said bluntly: “Today, everyone may compare Ruixing to Starbucks. We sell coffee. With the increase of sku in the future, it is possible Ruixing is a 711 virtual shelf. In the future, Ruixing’s approach may be similar to Costco. “
The core of the Costco model is to reduce the product sku while keeping the price to a minimum, attract customers with a very high price-performance ratio, and use a membership method to increase user stickiness. Membership fees are the main source of profit.
This statement has also been questioned by the industry: it can barely make sense to the target Starbucks, but it’s reluctant to target the Costco.
In the final script of Ruixing, Ruixing finally “like Amazon at that time, Amazon is catching customers and then continuously serving the needs of customers”. Therefore, Ruixing’s ultimate form is not the most like Starbucks, but may be the most like Amazon. However, Amazon started by selling books, and Rui Xing started by selling coffee.
An investor believes that Ruixing’s brand recognition is cheap coffee, and the product sku is very limited, and it will not become a real e-commerce. “This is bragging. I can say our fund = Blackstone + Bridgewater + Berkshire, who would not brag?” the investor asked.
From the perspective of Ruixing ’s current actions, at least in terms of form, Starbucks + 711 has already begun to take shape, and starting in the second half of 2019, Ruixing has rarely faced Starbucks in public. If Ruixing’s self-operated e-commerce Ruixing Chaopin can become a climate, what it will tell in the next stage will be the story of “Costco Coffee”.
No matter how big the dream is, after all, you need solid financial data and market value to support it.
When the unmanned retail strategy was announced in January this year, Ruixing’s stock price was $ 35 per share, and in less than two weeks, its stock price soared to a maximum of $ 51. At a high price of $ 42, it completed a round of additional shares and bond issuance. But then Ruixing’s stock price began to fall, and it caught up with the outbreak. Now the stock price is less than $ 30, and the market value has shrunk by nearly half.
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Of course, maybe Ruixing is more concerned about user growth and stickiness than market value.
Rui Xing said in early January that its transaction users have reached 40 million, which is an exciting number. But the uncertainty lies in how much these users can stay if Ruixing reduces subsidies in the future, and whether these coffee users are willing to pay for Ruixing’s new retail dream.
After all, it’s easy for a coffee drinker to pay for a coffee cup, but to make it pay for a lunch box at the same time, the uncertainty is much greater.