As the generation Z catches up, many brands start to give more focus on the consumption habits of the younger generation. Coffee represents a booming market in recent years sought-after by young people. In order to capture generation Z’s preference, Nongfu Spring has made constant efforts to explore new white space, launching products like Oriental Leaf, Tea π, NFC Juice and TOT. It also launched Tan Bing Drip Coffee and diversified its product lines in the coffee set.
Based on its excellent performance in bottled water, fruit juice, tea drink and other product aisles, Nongfu Spring launched a RTD carbonated coffee product--Tan Bing in May 2019, officially entering the coffee aisle. In October of the same year, Nongfu Spring Tan Bing Specialty Coffee debuted on the market, including low sugar latte, sugar-free latte and sugar-free black coffee. In March 2020, Nongfu Spring launched Tan Bing Drip Coffee, entering the hugely popular drip coffee space. Different from the instant coffee that dries coffee liquid to powders, Nongfu Spring Drip Coffee is more like a tea bag of milk tea, which the baked coffee beans are gound and sealed in filter bags. Consumers only need to hang the filter bag over a cup, pour in hot water and then a cup of coffee with smooth and mellow taste will be ready in two minutes. The filter bag is similar to ears in shape, so the direct translation of its Chinese name is "ear hanged coffee".
Compared to bottled coffee, with the way of brew it yourself,,drip coffee is more ritualistic and elegant, and compared to instant coffee, it has a mellower and purer taste as well as more authentic aroma. As such, Nongfu Spring selects drip coffee as its first hand-brewed coffee product and officially marches into the coffee set. From RTD carbonated coffee to specialty coffee and cupped coffee, On the surface, Nongfu Spring is differentiating its product launches after entering the coffee market. In a deeper sense, it stands as an important signal for Nongfu Spring to keep making in-depth development in the high-growth coffee market.
But Nongfu Spring’s ambition on the coffee aisle goes further than that. In 2019, Nongfu Spring placed fresh ground coffee machines in Wu-mart convenience stores, Wu-mart supermarkets and other Wu-mart retail stores in Beijing, with product offerings ranging from Americano, latte, cappuccino to mocha, and etc.. From packaged coffee products to fresh ground coffee machines, it’s clear that Nongfu Spring is working hard to explore more opportunities in various coffee consumption scenarios beyond seeking market segmentation and in-depth development in coffee categories. It strives to preemptively layout its own product system in the fast-growing segment.
Based on its brand advantages, Nongfu Spring has reduced the decision-making cost of consumers, built up a strong brand endorsement capacity and achieved sales performance. Meanwhile, Nongfu Spring has met the demands of generation Z consumers, broadened the overall number of consumer population and built a great beverage empire.