Core Viewpoint - The article discusses the emergence of a low-priced coffee brand, TAIJUAN COFFEE, in major Chinese cities, highlighting its unique pricing strategy and market performance despite skepticism about its sustainability in a high-rent environment [4][12][39]. Pricing Strategy - TAIJUAN COFFEE offers extremely low prices, with items like lemon water at 2.9 yuan, Americano at 3.9 yuan, and lattes at 6.9 yuan, which has raised questions about the viability of such a pricing model in high-rent areas like Shanghai and Beijing [5][10]. - The brand employs a "price for volume" strategy, selling large quantities of coffee at low prices, with a daily sales volume exceeding 400 cups in some locations [17][20]. Market Performance - Despite initial skepticism, TAIJUAN COFFEE has successfully opened 8 stores in cities like Beijing and Hangzhou over two years, indicating a strong market presence [12][38]. - The brand's sales figures are impressive, with one store reportedly selling over 7000 cups monthly on delivery platforms [17]. Operational Efficiency - The brand utilizes cost-effective operational methods, such as using second-hand equipment and pre-brewing coffee to reduce wait times and costs [25][26]. - The coffee is made from a blend of Robusta beans, which, while having some flavor imperfections, provides a high caffeine content that appeals to consumers [29]. Creative Offerings - TAIJUAN COFFEE has introduced innovative coffee flavors, such as green pepper latte and spicy sour soup Americano, which have gained significant attention on social media [30][35]. - These unique offerings serve as a marketing tool, attracting customers and generating buzz, while maintaining low prices [35]. Market Trends - The article notes that the low-priced coffee segment has potential for growth, as seen with other brands like Manner and Luckin Coffee, which have successfully disrupted the market [40][44]. - The increasing global coffee bean prices, particularly for Arabica, may lead to a shift towards Robusta beans, potentially impacting future pricing strategies in the coffee industry [42][43].

Core Insights - A new low-priced coffee brand, TAIJUAN COFFEE, has opened eight stores in major cities like Shanghai and Beijing, offering prices significantly lower than competitors, raising questions about its sustainability in a high-rent environment [3][8][28] Pricing Strategy - The brand offers coffee at extremely low prices: 2.9 yuan for lemonade, 3.9 yuan for Americano, and 6.9 yuan for latte, with promotional prices dropping below 1 yuan [3][5] - The store features large serving sizes, such as a 3000ml Americano for 14.9 yuan and a 5L bucket of Americano for 49.9 yuan, which contrasts with typical prices in other chains [3][5] Sales Performance - The Shanghai store reportedly sells over 400 cups daily, with significant sales on delivery platforms, indicating strong demand despite low prices [11][18] - The Beijing store also shows high sales volume, with estimates of 200-300 orders per day, suggesting a viable business model focused on high volume [11][18] Operational Efficiency - The brand utilizes multiple coffee machines and pre-brewed coffee to maximize efficiency, allowing for quick service and lower costs [18][20] - The use of Robusta beans, which are cheaper and higher in caffeine, contributes to the low pricing strategy while meeting consumer demand for affordable coffee [20] Marketing and Customer Engagement - The introduction of unique and creative coffee options, such as pepper latte and spicy coffee, generates social media buzz and attracts customers [5][22] - The brand's low-cost, high-experience offerings serve as a marketing tool, drawing in customers who may then purchase more traditional coffee options [22][25] Market Trends - The brand is positioned to benefit from the ongoing competition in the food delivery market, where low-priced items attract significant consumer interest [25][27] - The overall coffee market in China remains promising, with potential for new brands to emerge in various price segments, driven by a large consumer base and increasing coffee consumption [28][29]