The recent announcement by Cudi Coffee that it is ending its ‘9.9 RMB unlimited’ campaign marks a pivotal moment in China’s coffee market. This decision signals a strategic retreat from the aggressive price war it initiated, highlighting severe profitability pressures from rising global coffee bean costs and unsustainable franchise models. The industry is now transitioning from ‘price wars’ to ‘value wars’, with brands like Starbucks and Luckin Coffee influencing a renewed emphasis on experience, quality, and emotional connection with consumers. For investors, this shift presents opportunities in companies with robust pricing power, diversified product offerings, and resilient supply chains, as market consolidation accelerates. The demise of the 9.9 RMB coffee era reflects a broader maturation of the Chinese consumer market, where blistering growth is giving way to sustainable profitability and quality competition.
The End of an Era: How the Demise of 9.9 RMB Coffee is Reshaping China’s Beverage Market
