Chinese telecommunication giant Huawei is planning to jump up into the coffee market, after registering two trademarks.
According to China Daily, Huawei founder and CEO Ren Zhengfei intends to open more than 100 coffee stores in Shanghai to attract young people to work for the company.
Quichacha, a data bank that tracks business registrations, confirms that one registered trademark translates to “One Cup of Coffee Absorbs Cosmic Energy”. The name falls under the category of convenience food and the application is awaiting approval.
The other trademark, reserved for catering and lodging services such as cafes, restaurants, and mobile food delivery, is also being reviewed.
Prior to Huawei, Chinese sportswear brand Li-Ning applied to register the ‘Ning Coffee’ trademark with the China National Intellectual Property Administration, sparking widespread speculation within Mainland China about its intentions.
The coffee forays demonstrate that many established non-food brands are expanding their portfolio into the F&B category in order to engage with younger generations, who play a critical role in the brands’ future.
According to Statista, coffee market revenue in China is expected to increase to approximately US$13.25 billion in 2025. The market is now valued at $12.1 billion, nearly double its worth of seven years ago. Sales are expected to grow at a CAGR of 22 per cent during the next five years, reaching more than $32.4 billion by 2025.
