Following the opening of the first Coach Coffee Shop in Shanghai in July, Coach introduced its coffee concept to the 7th China International Import Expo for the first time. The company's CEO expressed its commitment to expanding the presence of the franchise, with a focus on building stronger bonds with young customers.

Participating in the expo for the sixth consecutive year, Coach, a Tapestry, Inc. brand, showcased its iconic Tabby collection at the CIIE and unveiled the new Soft Quilted Tabby series on a global scale. Among the many attractions, the introduction of the Coach Coffee Shop experience area at the CIIE has captured the attention of visitors.

In addition to serving their signature coffee, Coach has also brought a selection of desserts to the event.

"One of the key reasons for bringing the Coach Coffee Shop to CIIE is because we really wanted to create a microcosm of what Coach stands for behind our brand, which is also in line with our Coach strategy—to build emotional connections with our consumers, to introduce innovation that encourages self-expression, and to provide unique experiences," said Liliana Lucioni, president of Coach China.

"CIIE is when we preview the best, and the Coach Coffee Shop is one of our best initiatives for the future," Lucioni said.

As a renowned global fashion house established in New York in 1941, Coach expanded into the Chinese mainland in 2008, opening its flagship store in Shanghai in 2010. Presently, it operates nearly 300 stores across the nation.

After years of closely monitoring the Chinese market, Lucioni has observed significant changes among Generation Z consumers, who are a key target demographic for Coach.

"Today, Generation Z likely prioritizes experience over material consumption. They seek authentic dialogue with the brand and are eager to express themselves and find their place in the world," Lucioni elaborated.

To establish better connections with the demographic, Coach has decided to open additional coffee shops in China. Lucioni announced that coffee shops will soon be opening in Sanya, Hainan province, Beijing, and more cities.

"We are planning to open more stores in second- and third-tier cities across China, and we are also looking to enhance the overall experience and open coffee shops where we believe they would fit," stated Lucioni. She estimated that they would launch around 15 coffee shop stores in the near future.

Indeed, many luxury and designer brands have turned their attention to the burgeoning coffee market in China.

On Aug 8, top designer brand Vivienne Westwood's coffee shop was unveiled in Beijing Sanlitun Taikoo Li. In September, the world's first DG Caffè by Dolce & Gabbana opened at the brand's flagship store in Shanghai's CITIC Square, providing a blend of fine cuisine and wines alongside its coffee. During the DIOR LADY ART #9 exhibition held at the Shanghai Exhibition Center from November 7 to 10, a CAFÉ DIOR was also featured as part of the event.

Alfonso Dolce, the CEO of Dolce & Gabbana, said, "we look forward to strengthening our presence in the local market through DG Caffè, using the ever-evolving traditions of Italian cuisine to showcase the art of Italian craftsmanship and convey Dolce&Gabbana's pursuit of the good life."

Lucioni mentioned that she has also observed the trend of some brands are choosing to enter the coffee market. She explained:"I think for us it is not having a cafe, it is really to bring a very cohesive experience to the consumer. We want to make sure that they can experience culture through different senses, including the good taste."

Tang Xin, director of the Hongcan Industry Research Institute, a research institution specializing in the dining industry, believes that the expanding coffee consumer base and market in China are significant factors driving luxury brands to explore opportunities in the coffee industry.

According to the Global Coffee Industry Development Trends Insight Report and the related index co-released by the China Media Group Shanghai Bureau — the financial program center of CMG and the Ministry of Agriculture and Rural Affairs' rural economy research center in October, the value of the coffee industry in China reached 265.4 billion yuan ($37.3 billion) in 2023, marking a year-on-year increase of over 30 percent. The number of coffee consumers in the country is approaching 400 million.

Tang emphasized that venture into the coffee market can increase the luxury brand's exposure among young consumers.

"Selling coffee was not the primary objective for these luxury brands; they hope to use coffee, pastries, and other easily accessible categories to bridge the gap between the brand and the public, drawing in a larger consumer base, particularly the younger Generation Z, to engage and experience the brand, infusing it with a more youthful vibe. After all, compared to handbags that start at thousands of dollars, the price of a cup of coffee is more approachable," Tang said.