Manual brewing, indeed the ultimate choice, can Nestle catch the pouring wealth and honor?
Manual brewing, indeed the ultimate choice, can Nestle catch the pouring wealth and honor?
Recently, an auntie from Nanjing became an internet sensation for selling hand-brewed Nescafe coffee, although her shop originally started as an ordinary sugarcane juice stall. Unexpectedly, her playful spirit has made her coffee shop extraordinarily popular. According to reports, what the auntie offers on the street is a simple coffee enjoyment, where one can experience the warmth of a handmade brew for just 10 yuan per cup.
The auntie's coffee stall is unpretentious, with no expensive decor or equipment, just simple tables and chairs and a kettle. Yet, it is this simplicity and authenticity that has become a bright spot on the street. Her simple but unique technique has brought an extraordinary aroma and taste to ordinary Nescafe instant coffee powder.
Surprisingly, with her fame spread on the internet, the auntie's coffee can sell hundreds of cups a day, with customer traffic so heavy that boiling water is often in short supply. Many young people will even travel long distances, taking high-speed trains just to taste the 10-yuan coffee. This phenomenon makes one wonder, what kind of magical power does this simple “hand-brewed” coffee have?
The popularity of the auntie's hand-brewed coffee, in addition to the push from short video platform traffic, also shows factors behind its success worth learning from. Firstly, the affordability of the price, and secondly, the auntie's brewing technique brings novelty and curiosity to the customers. Each time, she pours generous amounts of Nescafe coffee powder precisely and quickly into the cup, followed by hot water, bringing consumers an invigorating aroma that's hard to forget.
The aunt's hardworking attitude and enthusiasm also reflect the admirable qualities of the Chinese people, earning consumer respect and affection. This immersive hand-brewed coffee experience feels not just like drinking coffee, but more like savoring a lifestyle attitude.
Ultimately, people have gradually come to recognize the unique charm of hand-brewed coffee, compelling the recognition that compared to other coffees, hand-brewed coffee may indeed reach the pinnacle of touching one's soul. If customers were allowed to experience grinding the coffee beans themselves, that sense of involvement could take this unique experience to the next level.
Interestingly, the Nescafe brand has also noticed this phenomenon, even writing "Grandma's Style" in their Nescafe coffee livestreams, and mentioning "The Nanjing Auntie" when introducing their products. Nescafe has expressed an interest in discussing potential collaborations with the auntie, even sending people to visit Ms. Han.
Netizen's comment: Nescafe didn't realize they already had an offline store that has been around for over 20 years. Feels like this is another brand story like "Wanchai Ferry"? Before there was the Shanghai Auntie, and now there's the Nanjing Auntie, so Nescafe could just open an offline store. In any case, this phenomenon has sparked thoughts on combining tradition with innovation. In this fast-developing era, traditional things can also be revived with new vitality, and the auntie's coffee stall is a good example, combining traditional hand-brewing with modern Nescafe coffee powder to create a unique coffee culture.
At the same time, this event has also shown us the power of diligence and wisdom. Although the auntie is not young, she insists on setting up her stall every day, creating value with her own hands. This is not just a consumer story, but also an inspiring one, offering much emotional value beyond the coffee, no wonder so many people love it.
For those temporarily confused young people, it is also a spiritual journey. Many young people support the aunt's business out of love for her sincerity. However, through the media, the aunt has expressed that there's no need for unnecessary consumption if they don't like the drink, and she thanks everyone for their support! Still, I suggest that the aunt switch from plastic cups to paper ones to be a bit healthier. What does everyone think?
How is Nestlé doing? To be honest, if not for the Nanjing aunt, I would have almost forgotten about Nestlé coffee. I took the opportunity to look at Nestlé's performance: the growth is worrying, but the profits are good. In February this year, Nestlé released their annual financial report for 2023. According to the report, Nestlé's reported total sales decreased by 1.5%, to 93 billion Swiss francs. Net profit increased by 20.9%, reaching 11.2 billion Swiss francs. Sales in the Greater China region declined by 5.9%, to 5 billion Swiss francs, equivalent to about 39.7 billion yuan. If we include Nestlé's Health Science and Nescafé business units, which are directly managed by Nestlé's global headquarters, the revenue in the Greater China region increases to about 43.6 billion yuan, with a year-over-year growth of 5.6%.
"Growth in the Greater China region is mainly due to the strong momentum of out-of-home channel sales and the e-commerce channel. Market shares for products such as instant coffee, pet food, and confectionery have increased," Nestlé pointed out in their financial report.
However, in terms of growth rate, the coffee business is not outstanding. The latest quarterly report for the first quarter of 2024 shows that the organic growth rate in the Greater China region is 3.7%, with the confectionery business being the biggest contributor to growth, and the coffee business achieving low single-digit growth.
In terms of product categories, Nestlé is stronger in professional catering, baby nutrition, pet food, and confectionery, and coffee still needs work. However, the aforementioned financial report was released before the aunt became popular, so let's see if it will have a positive impact on the performance of the second quarter.
The increasing phenomenon of deindustrialization suggests that many people expect post-industrial consumer goods to have more human touch.
During industrialization, the success of fast-moving consumer goods often relied on a series of fixed operational modes. This includes building brand packaging stories, launching new products with different material combinations, thereby reducing marginal production costs through increased sales, and relying on product premiums for profit. However, due to product homogenization and personal income disparity, this model has encountered developmental bottlenecks. The lack of new technology, materials, or stories means that in a fully competitive market, the price of goods will eventually approach their production costs. Therefore, high-priced non-essential consumer goods are prone to decline. Zhong Xuegao is a typical case.
From the consumer's perspective, some customers are starting to deindustrialize due to various reasons (either because they did not benefit from industrialization, or simply due to aesthetic fatigue), leaning towards products that have more humanity rather than those produced by rapid industrialization. Combining these two trends, consumer goods that focus on affordability and artisanal craftsmanship are bound to win the favor of a group of customers. Whether it's coffee, tea, wine, hotpot, barbecue, or shirts and other fast-moving consumer goods, this is clearly reflected. The so-called artisanal craftsmanship refers to returning to more primitive production processes while ensuring product quality, discarding unnecessary "fluff."
Moreover, we have also witnessed some liquor brands hiring brewing masters to create specialized products, which in turn are endorsed by numerous celebrities. Brands such as Auntie Milk Tea have likewise followed this trend. People choose these brands not just for the products themselves but for the experiences they offer. The advancement of commerce also aligns with the natural evolution of human needs, where the fulfillment of Maslow's hierarchy of needs encompasses not only material goods but also emotional experiences.
What we need to guard against is that this competition based on experience could lead to vulgarity in content or evolve into a simplistic battle of stances, thus losing touch with the intrinsic value of the products. True harmony lies in industrialization meeting basic needs, while the emotional connection borne by products meets emotional needs, creating diversified competition. In such an environment where each displays their own talents and strengths, the market can exist in harmony.
As the Auntie from Nanjing says, she does not consider opening a branch. This reclusive attitude towards life might be one of the reasons why young people yearn for and admire it. It represents not merely the product itself but a pursuit of a lifestyle attitude.
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