A cup of beverage has its secrets. Shanghai people only buy milk tea and coffee when shopping, but don't buy anything else? Never expected

"Buy a cup of milk tea or coffee, browse trendy clothes, or go to a mobile phone store to play with a prototype, and then go home..." For a while, many self media have taken videos saying that the current trend is "only shopping without consumption", and claiming that this is because of "consumption degradation" - not willing to spend money, only buying a drink while shopping.

Is it really like this? A reporter from Jiefang Daily's Shangguan News visited the streets and found that a small cup of beverage is not just a downgrade in consumption, but also has the latest business experience.

Behind the "roll" lies a consumption upgrade

With over 8500 coffee shops, Shanghai has become the city with the most coffee shops in the world; More than coffee shops, there are freshly made tea shops commonly known as "milk tea shops". According to Meituan data, there are over 10000 freshly made tea shops in Shanghai. With so many coffee and tea shops, a new trend has emerged.

Located less than 200 meters between Shaanxi North Road and Xikang Road, Changshou Road has two shopping malls: Paris Spring Shaanxi Branch and 189 Shopping Center. Their business areas are all less than 50000 square meters, belonging to a medium-sized community commercial entity, but they have attracted more than 10 coffee shops and tea shops to settle in. Chinese and foreign brands such as HEYTEA, Costa, Tim, Manner, Starbucks, M stand, Lele Tea, and Cha Bai Dao gather here, not including the simple meal shops that offer tea and coffee in the mall.

On a short road of a few hundred meters, there are about 10 tea shops and cafes concentrated, most of which operate adjacent to each other

Ms. Lin, a resident living nearby, is a frequent visitor to these coffee shops and tea shops, and has observed the conclusion that "the mall stores are constantly adjusting, but the business of the coffee shops and tea shops is stable.". She said that the Shaanxi branch in Paris Spring has been open for more than 10 years, and the department store industry has been affected in recent years. The shopping mall has been adjusting, and the shops have been on and off. "But HEYTEA, Costa, and Starbucks were among the first stores to settle in and have never changed; later Tim and Manner have also been operating for several years." She believes that this indicates that coffee shops and tea shops are "profitable": "Although the unit price is not high, why do businesses still insist if they cannot make money?"

The staff of HEYTEA also said that since the opening of the store, sales have been stable, and the surrounding residents and white-collar workers in office buildings are regulars of the small store. During the afternoon tea period and brand themed events, there are particularly many orders. "Sometimes, after placing an order, it takes more than an hour to pick up the tea." She believes that although there are many coffee shops and tea shops, consumers have a high frequency of purchase, and the market space is still large, especially after the epidemic, business has grown rapidly. "In July and August this year, many of our stores saw a 200% increase in sales compared to the same period last year."

On weekday afternoons, the business of the freshly made tea shop was very prosperous, with a large number of online orders in addition to on-site consumers who made purchases

Looking at the menus of different coffee shops and tea shops, you will find that even small businesses priced at tens or even tens of yuan are full of competitive smoke: on the surface, businesses still attract consumers through "price wars", with "group purchase prices" and "special prices" frequently appearing on the signs of these small shops; At a deeper level, it is a "quality war", where more and more businesses emphasize product quality in their promotion. For example, HEYTEA is one of the early brands to use "real milk, real fruit, and real tea" as their selling points. Nowadays, more and more tea beverage brands are using similar slogans.

More and more freshly made tea beverage brands are promoting quality

Practitioner Chen Guo bluntly stated, "This is a consumption upgrade driven by market demand - consumers value both price and quality." He analyzed that products using real tea and real milk have higher prices than those using tea powder and milk essence, but these types of products are more popular in first and second tier cities, especially in the central urban areas and landmark areas of first and second tier cities; The same goes for the coffee market, where consumers hope to buy a cup of coffee made from "good beans" at a reasonable price. "For brands, 'high quality and low price' is a test of the supply chain; for the market, 'high quality and low price' is not an upgrade - consumers are willing to spend tens or even tens of yuan every time they go out to buy a high-quality tea and coffee, is this not a positive signal?"

Chen Xinkang, a professor at the School of Business at Shanghai University of Finance and Economics and president of the Shanghai Marketing Association, believes that in today's business landscape, "high-quality living" can bring purchasing power, and coffee shops and other formats reflect the possibility of high-quality living. From a cup of coffee, one can see multiple aspects beyond the fast-paced life in Shanghai. "Drinking coffee can be leisurely, enjoying life, stimulating creativity, encouraging communication, and embracing diverse cultures and strengths..."

He believes that there are roughly three characteristics of a high-quality life: "Firstly, the proportion of intangible spiritual consumption gradually exceeds that of tangible material consumption; Secondly, people are increasingly pursuing personal feelings and experiences, and the phenomenon of following the trend in consumption will be reduced. More consumers will consider their consumption choices based on their subjective feelings and cognition; Thirdly, benchmarking against international high standards." Of course, there is no unified standard for what "high-quality life" means, but people around the world share the same pursuit of knowledge, beauty, higher-level spiritual life, and the desire to realize personal value. These common needs and pursuits are worth considering for every professional who aspires to create a higher quality life.

We need to be both small and beautiful, but also cost-effective

The purchasing power brought by "high-quality life" is not only reflected in coffee and milk tea, but also in small shops in Shanghai. A few years ago, affected by the COVID-19 epidemic, some small stores did not "survive". However, after the epidemic, Shanghai's small store economy showed strong resilience and vitality, and began to recover from the fourth quarter of last year.

According to Meituan data, the year-on-year growth rate of newly opened small stores in Shanghai recorded by the platform reached 7.2% in 2022; In the first half of 2023, there were over 10000 new specialty small stores added per month. Since June, the opening of stores has further accelerated, and in just three months, the city has added nearly 50000 new small stores. Li Jiwei, Vice President of Meituan Research Institute, believes that small stores are the capillaries of the market economy. Rapidly developing small stores not only reflect the market's demand for diversified goods and services, but also demonstrate the attractiveness of market purchasing power to entrepreneurs and operators. "If there is no 'purchasing power', why do they open stores?"

In June this year, Pan Wen's fourth small shop, Pan Xiaoshao Yunnan Barbecue, opened next to the Yunfeng Theater on Beijing West Road. The shop where the new store is located was vacant for a long time - although it is located in the Jing'an Temple commercial district and has scenic spots, the shop is on the second floor of the business building. After exiting the elevator, it still has to pass through a long corridor. Pan Wen almost didn't hesitate to rent this place, "because before we opened, there were already many small shops concentrated on this road, and the popularity was very high.". Sure enough, the new store has been open for over two months and has become a popular restaurant in the area. On weekends and weekends, there are always people waiting at the entrance.

The neighborhood where Pan Xiaoshao is located is crowded with multiple small shops, making it lively even on weekdays nights

The first Pan Xiaoshao restaurant was the result of Pan Wen and her Yunnan based husband "practicing stalls" for three months in 2016. "At that time, my husband, who was good at cooking, wanted to know if he could make a breakthrough in the catering industry. Unexpectedly, there were many returning customers who set up stalls, which directly drove us to start a business. The whole process went very smoothly, making us feel the welcome and friendliness of small shops in Shanghai."

With authentic Yunnan flavor and fashionable store decoration, "Couple's Wife Shop" has grown from one to four. Pan Wen also noticed the statement on the internet that "young people don't spend money" and "there is customer flow but don't consume", but she felt it was not comprehensive. "Nowadays, consumers are not just not spending money, but they need to spend money on the cutting edge. If the products or services you provide are exactly in line with consumer psychology, they are not afraid that no one will pay."

Pan Xiaoshao's per capita unit price exceeds 100 yuan, which is not the cheapest among barbecue restaurants, but the consumption threshold is very low. There are several varieties of grilled skewers priced at five or six yuan. "Even if consumers only order one or two skewers, we welcome them to sit in the scenic spot and experience the scenery slowly. In short, we should treat every consumer well."

Pan Wen also told a story about tissues: one day, a consumer came to the store and didn't order anything. He just wanted a few tissues, and the waiter readily gave them to him. That night, the small shop found on the Dianping website that the consumer gave a five-star review for receiving a complimentary tissue. "Consumer reputation is very important for the operation of the small shop. He didn't make any purchases today, but maybe because of our service, he will come to consume next time. This review can still be seen by other consumers, and may bring more business."

Late at night on weekdays, the scenic spot of "Pan Xiaoshao" is still filled with guests

She firmly believes that the vitality of small shops will not decline. "Various small shops can provide the pleasure of 'Taobao', and people naturally enjoy discovering new and beautiful things. This is the value of small shops. Perhaps the impact of the epidemic will not disappear soon, but in the long run, opportunities always exist. As long as you do yourself well, the future of small shops will definitely be better."

In the eyes of third parties, small shops do have to face changes - they need to attract consumers with "small and beautiful" tactics, but also give up those "tricks" that have been criticized by the market.

Li Xiaotian is a baking trainer and also a shop exploration expert on Xiaohongshu. "The economy of small shops in Shanghai is very active, and they haven't seen each other for a few days. There are also several more shops on the familiar roads." He also found that there are both young people and middle-aged and elderly people who are willing to try new things and willing to spend money. "Looking around the country, Shanghai's' aunties' and 'uncles' are definitely the most fashionable consumer groups. When I explore shop streets, I often encounter' aunties' and 'uncles' who dress up beautifully and talk elegantly while having afternoon tea."

Li Xiaotian believes that when some self media use the example of "small shop closure" to empty physical business, we should objectively view the opening and closing of small shops, and not simply attribute it to external reasons, but also look for internal reasons. He has visited many "internet famous bakeries" and witnessed them becoming extremely popular for a while. He also noticed that some have already become short-lived. "We cannot blindly pursue high prices, nor should we casually use 'hunger marketing'. Consumers nowadays are becoming more and more rational, and some small shops have not been affected by the epidemic, which is closely related to low cost-effectiveness."

He observed many "long-lived" small shops in Shanghai, many of which he often patronized. "There are smoked fish shops, Boiled -sliced cold chicken shops in the food market, and small noodle shops on the street. The main products are authentic. In fact, desserts and cakes that 'aunts' and' uncles' like are often those products that have passed the test of time."

Many reputable small shops, even if they operate in new locations, still have a lot of popularity

As a trainer, Li Xiaotian can also feel the attraction of Shanghai's small store economy to entrepreneurs from the feedback of the trainees. "Often, some trainees express their desire to open a store or ask me what to pay attention to when opening a store. My personal suggestion is that the store should not be too large and the products should be vertical, which can reflect the cost-effectiveness."

From "spending small money" to "spending big money"

A cup of milk tea or coffee is usually priced at around ten to several tens of yuan, and small shops that specialize in small restaurants and small commodities also have low average customer prices. Some people think they are "small businesses", even if consumers pay, they are still "spending small money". Little did they know that often, "spending small money" can become "spending big money".

Maochang 1923 Mirror World on Huaihai Middle Road opened a new old store in May this year, which used to be a traditional glasses store. When I first saw the new store, the external evaluation was that "the glasses store actually sells coffee drinks" - the store introduced the same old brand "Shanghai Coffee" and launched themed coffee and freshly made tea drinks.

But unlike most coffee shops, Maochang has set up mirror display areas in the coffee and rest areas, and uses rotating sushi trays to place fashionable mirror frames on conveyor belts, making it convenient for coffee drinkers to try them on at any time.

Glasses shops selling coffee have increased consumer interest in wearing and watching coffee

It is this small design that makes consumers who spend tens or even tens of yuan on coffee drinks take the initiative to pick up the mirror frames in the store, leading to new consumption, sometimes hundreds or even thousands of yuan.

"It's not that consumers don't spend money, it's about giving them a reason to spend money." Store manager Jin Shaochun said, "The first step for consumers is to go from" seeing "to" trying "." If you don't know if it's suitable for you, you won't have the next step of consumption. Coffee and tea drinks are the key to promoting "trying". "

Glasses delivered to consumers like revolving sushi

Showcasing professional services is also important. After the new store opened, Jin Shaochun made his first attempt to introduce the store's products through short videos, and found that some netizens even had a conversation with him late at night about the screws of a certain designer's mirror frame. Sometimes, in order to answer netizens, he has to collect more information and increase his professional knowledge reserve. However, the results of the communication were very gratifying. "Consumers felt that our introduction was professional and objective, and they actively went to the store to experience it. So far, through this method, the store has sold three pairs of glasses, with a unit price of over 10000 yuan."

Jin Shaochun believes that a unit price of tens of thousands of yuan indicates that consumers are willing to spend money, but the products and services should make them feel "worth it".

After capturing this trend, the store further emphasized professionalism: introducing the most advanced optometry equipment, senior optometrists can provide personalized glasses recommendations based on different consumer eye habits; The mirror frame fine-tuning and other processes are completed on an open workbench, allowing consumers to directly observe the entire process and try it on at any time, and to request adjustments at any time

Waiters and consumers face each other face-to-face, adjusting the frame according to consumer feedback at any time

Jin Shaochun said that the positioning of the new store is modern and fashionable, and there are many high-end or luxury brand products displayed in the mirror frames for thousands, tens of thousands, and even tens of thousands of yuan. Some people are worried that they won't sell it, but the fact has proven that mixed and mixed formats attract consumers to come in, and professional services are in return for their savings. After the old store opened, its sales increased by 30% year-on-year.

Perhaps someone wants to ask: would consumers "spend a lot of money" without a mix and match of coffee and tea drinks, and without the stimulation of "small money"?

The Maochang Glasses Store on Nanjing East Road Pedestrian Street may be able to answer this question.

The same brand and product, but the two stores face different consumer demands.

Sha Tianbing, Deputy General Manager of Shanghai Sanlian Co., Ltd., introduced that the consumer group of pedestrian streets is quite diverse, including local citizens, including the elderly who have been wearing glasses in Maochang for decades; There are also tourists from other places, including parents who specifically choose glasses for their children for time-honored brands. Their purpose of coming here is very clear.

So, when the headquarters updated according to consumer demand this year, they did not introduce coffee or tea drinks, but further emphasized the professionalism of glasses and the comfort of service——

The service space of the main store has a total of 3 floors. As it is located in an old building and cannot be equipped with elevators, a rest area has been specially added in the stairs. Consumers can sit down and rest at any time when climbing stairs; The comprehensive glasses and optometry services are on the third floor, but an optometry room has been added on the ground floor to serve consumers with limited mobility.

The newly established optometry room on the ground floor can serve consumers with limited mobility or the elderly and weak

Consumers value the optometry services of time-honored brands, and there may be queues waiting for optometry during winter, summer, and holidays. To this end, Maochang has launched an online appointment for optometry, effectively reducing consumer waiting time on site; A new rest area has been set up outside the optometry room, which is convenient for consumers who need to undergo temporary optometry.

There is a comfortable waiting area outside the optometry room

The variety of products is also more diverse, including frame glasses, contact lenses, sunglasses, lenses of different specifications, and even hearing aids related to vision, all of which are available; The price range ranges from 200 yuan frames, less than 300 yuan frame lens packages, to tens of thousands of yuan products, covering self owned brands, conventional market brands, niche designer brands, luxury brands, etc. Different groups can choose what they need.

Located at the headquarters of Nanjing East Road Pedestrian Street, we still offer affordable products

Glasses are different from other products in that they generally belong to low-frequency consumption and have a slightly higher unit price. However, since the opening of the old Maochang main store, there has always been a constant flow of customers. On the Dianping website, there are various likes from consumers, such as "beautiful environment, good service attitude", "meticulous and warm service", "affordable prices, meticulous service, and professional optometrists".

Sha Tianbing said that time-honored brands attach great importance to these evaluations, which may also inspire more physical business practitioners: current consumers are pursuing products and services with better experience, stronger professionalism, and higher cost-effectiveness.