Beer Marketer's Insights - RETAIL: Action at Low & High Ends as China's Super-Value Player Mixue Chain Lands in LA & NY While Nespresso Opens Lounge-y Flagship in NY

Wave of incursions by Asian-based tea and coffee chains that's seen arrival of marques like Luckin, Cotto and HeyTea is showing no signs of a letup. The latest: the biggest of them all, Mixue, with outposts just opened in LA and NY this month. As it reminds people relentlessly in marketing materials and in-store signage, its biggest chain yet boasting global footprint, entirely in Asia and Australia, of 47K stores. With prices starting at $1.19 and capped at $5, it's no surprise BBI encountered a line around the block at NY location near Madison Square Garden, at edge of Koreatown nabe, despite frigid Saturday weather. (We duly shivered our way to a $1.19 soft serve to get that uplifting feeling of having beaten the system.) But the retail action's not all at the low end: Nestle just opened a flagship Nespresso store amid the fashion boutiques on lower Fifth Ave, a haven of nearly 14K square feet that's part museum, part showcase, part lounge. "Our Nespresso New York City flagship is more than a boutique," sales vp Jason Webber told Time Out NY. "As the pinnacle of our retail strategy, it&#39;s the first in North America to bring our vision to life, blending the elements of discovery and experience with a local NYC touch." Mixue Offers Affordable Alternative, Even in High-Priced LA & NY Markets Mixue opened its first US store in LA on Dec 19, then quickly added locations in NY, where Luckin, HeyTea and Cotto already have established beachheads. Core menu features ice cream, tea, fruit tea, milk tea and fresh-brewed coffee and diverse toppings. In cities where a single drink from established American purveyor has blown way past $5, Mixue is known for the value it offers with most items priced at $1.19-4.99. Tho unknown in US, Mixue operates locations in China and in 13 other countries that include Australia, Japan, South Korea, Thailand, Malaysia, Vietnam and Singapore. Given the dog-eat-dog competition in its home market, it may be that Mixue views high-priced US market as easy pickings. "Mixue is actively advancing its global strategy," co's US chief told Chain Store Age as it opened LA store. "Given the substantial market potential in the US, the first store serves as a starting point. Moving forward, the company will steadily expand its store footprint, allowing more local consumers to enjoy high-quality, affordable drinks." In NY, Mixue quickly opened locations in Koreatown, Hell's Kitchen and Chinatown. Line at Koreatown store was mainly but not exclusively comprised of Asians. A pair of the chain's Snow King mascots humorously jostled each other on the sidewalk as suitcase-wielding travelers headed to Penn Station struggled to get around them. Non-Asian woman ahead of us said she'd been lured there by general buzz that led her to an online video that closed the deal. In the crush of humanity, we weren't able to inquire later whether she thought the experience was worth the sacrifice. Our soft serve was fine and - well, $1.19. Ikea prices, but right in Midtown Manhattan. Nespresso Goes All Out to Romance Brand As Time Out noted, massive space "feels less like a store and more like a choose-your-own-adventure for the caffeinated." Key elements include "taste and discover" on main floor that to us had vibe of a museum gift shop and offers self-guided sampling or, more elaborately, masterclasses at nearby "coffee theatre." Wrapping and engraving station allows visitors to customize their purchases, tho welcoming and attentive staff, to our experience on Sat, kept the sell very soft. Downstairs featured so-called Nespresso Lounge where visitors are encouraged to craft their own free coffee using home or commercial units, tho staff was happy to offer guidance on roasts, operate the machines and froth milk, if desired. And a Hidden Cup Coffee Bar with vibe of a cocktail lounge serves zero-proof coffee cocktails and the like in late afternoon and early evening hours. Time Out features lotsa Nestle-supplied fotos heralding new flagship.

RETAIL: Action at Low & High Ends as China's Super-Value Player Mixue Chain Lands in LA & NY While Nespresso Opens Lounge-y Flagship in NY

Publishing Info