Stelang: Targeting at a Trillion-Dollar Market Through "A Cup of Coffee"

2022-08-23

Abstract:

A big data monitoring report by iiMedia on China's coffee industry development and consumption demand in 2022-2023 showed, the market size of China's coffee industry has reached 381.7 billion Chinese Yuan in 2021, which is expected to reach 1 trillion CNY in 2025 with a growth rate of 27.2% in coffee industry.

A heat wave with a yellow warning hits many countries in the hot summer this year.

So would you like to have a cup of iced coffee with intense aroma right at this moment?

Coffee has become a modern necessity for young people today. They are used to starting a fresh day with a cup of mellow coffee. However, people are lack of time and energy to make a cup of hand ground coffee by themselves in the fast-paced life.

But now you could make your dream come true simply by a coffee appliance.

With it, you are not expected to be a coffee snob nor needed to know any skills to make a cup of gourmet coffee but only a few seconds.

To discover and explore with great concentration

To draw widespread attention to the coffee culture

Coffee is reportedly originated in Ethiopia. It is increasingly loved by local consumers because of its unique taste after its entering in the Chinese market.

A big data monitoring report by iiMedia on China's coffee industry development and consumption demand in 2022-2023 showed, the market size of China's coffee industry has reached 381.7 billion Chinese Yuan in 2021, which is expected to reach 1 trillion CNY in 2025 with a growth rate of 27.2% in coffee industry.

Chinese consumers pay more and more attention to the convenience as well as coffee quality as the continuous expansion of the Chinese coffee market. Coffee capsules are a good choice for them, which also drives the huge demand of capsule coffee machines.

Stelang Electric Appliance Co., Ltd (Stelang) is located in the city of Chinese electric home appliances - Shunde, Foshan, Guangdong Province and founded in 1991. It is a high-tech enterprise specializing in the design, production and sales of coffee related products and other appliances.

Stelang takes the business tenet of "pragmatism, innovation and development" for all the time and keeps discovering and exploring with great concentration in the field of coffee machines. For that, Stelang puts large amount of costs into the R&D of product design and functions to develop original products.

Because of its original technologies and complete intellectual property rights, Stelang has its unique competitive advantage in the industry, and has continuously introduced high-quality new products to the market year by year. Its products are exported to Europe, North America and other overseas markets, helping draw widespread attention to the coffee culture.

To go deeper into the market

To better understand the consumers' diverse taste

With a capsule coffee machine, all you have to do are just adding water and putting the coffee capsule into it. And few seconds later, a cup of steaming coffee will be served in front of you. The capsule coffee machines not only save consumers from tedious steps such as grinding beans, tamping coffee powder, cleaning, etc., but also retain the pure taste of coffee, greatly reducing the time and cost of waiting.

A coffee industry insider indicated that the demand for fully automatic capsule coffee machines would grow higher and higher with the upgrade of new consumption pattern. Therefore, for the coffee machine market, whoever can develop more fully automatic machines that meet the requirements of modernization can truly lead the reform and development of the industry.

As an innovator of the domestic household brand of capsule coffee machine, Stelang has launched a series of models that can fit different business needs, allowing users to make coffee more efficiently, conveniently and stably. Especially, its capsule coffee machines with one button intelligent control technology can identify the barcode on the coffee capsules and match the temperature, the amount of water and time accurately according to different kinds of coffee capsules to ensure the mellow taste of each cup of coffee.

In order to truly satisfy the diverse taste of various consumers, the chairman of Stelang had led the sales team personally to go deeper into the market every year before the outbreak of COVID-19 pandemic, and had been an active participant in the overseas exhibitions, such as HANNOVER MESSE in Germany, FUNDIEXPO Monterrey in Mexico and other international exhibitions more than ten. They researched the market dynamics and customer needs. In addition, they solved the difficulties encountered during the sales, and responded quickly to the sales strategies development to seek business opportunities.

To introduce high-end devices

To create smooth appearances with fine workmanship

For smart home appliances, a good looking appearance has a wider appeal. Therefore, the molding of products' outer cases appears essential.

"For the home appliance industry, brand and appearance gradually tend to be vital factors to influence consumers' purchase intentions because functions of products are seriously homogenized. The assembly relation of the plastic parts of coffee machines are particularly strict, e.g. the product surfaces need to be high glossy, electroplated and multi-colored, which requires higher standards for the injection molding machines to do better in injection pressure, color mixing effect and clearing and color changing speed.” said Chen Guolun, the general manager of Stelang.

In order to solve the issues mentioned above, Stelang has increased its investment in injection molding equipment and purchased injection molding machines from YIZUMI many times, which have provided a solid guarantee for the product quality. Chen Guolun added, "From the early A-series injection molding machines to SKⅡ today, Stelang has witnessed the upgrade and update of YIZUMI's injection molding machines. So far, they can fit the production schedules well and the qualified rate of products is above 98% as well.”

It is reported that the Stelang has designed fashionable and cool appearances for automatic coffee machines and created smooth appearances with fine workmanship. The dimensions of Stelang coffee machines are only about an A4 paper and these compact machines will not occupy too much room no matter where they are. Last but not least, the beautiful and colorful appearances make them as modern ornaments everywhere.

To upgrade the traditional mode

To seek opportunities and breakthroughs in crisis

In recent times, Stelang has achieved major highlights of "personality + intelligence" on coffee machines and continued the light luxury style in simplification favored by young people in appearances, which gradually make Stelang as a rising star in the industry. Simultaneously, Stelang has been developing and expanding with the spirit of "pragmatism, innovation and development" and the annual output of coffee machines amounts to 2 million.

Stelang's production capacity is growing and the number of workshops is rising, and so is the administrative difficulty. Issues like how to implement lean management and how to monitor the real-time production status have always been the top priority for Chen Guolun.

In this regard, Chen Guolun explained: "The market competition is fierce today, there are too many choices for consumers, and cross-category competition is becoming increasingly sharp. The profit margins will be further squeezed if we don't reform. Especially the manufacturing industry is transformed by the advent of the 'Industry 4.0', manufacturers focus on the capabilities to control costs. Therefore, digitalization and informatization must be made.”

Chen Guolun also emphasized: "Digital transformation is not only the inevitable for traditional enterprises to seek opportunities in crisis, but also the general trend of economic and social development. If an enterprise wants to keep forward, they must integrate production with digitalization."

To overall arrange the intelligent manufacturing

To facilitate the new development of coffee machine industry

In the middle of this year, YIZUMI Yi+ intelligent manufacturing platform has been officially operated by Stelang to collect, manage, analyze and trace back data of raw materials, products, energy consumption, production and so on, making the production process more transparent and better improving the factory management.

It is reported that the Yi+ intelligent manufacturing platform are of advantages like rapid deployment and maintenance-free. The principle behind it is that the parameters of the device can be uploaded to the cloud platform in real time through 4G and 5G networks by connecting to a gateway, and then users can directly monitor the production situation through the embedded system in the cloud platform. ERP, CRM and other production management systems can be tightly integrated into the platform simultaneously to connect the production with the five major elements like man, machine, material, method and environment, providing an important support to manufacturing digitalization by reducing costs, improving the product quality and increasing the production efficiency.

And now, a series of information such as real-time order status, inspection status, production schedule, and the percent of pass is accessible conveniently via phone and computer, and the traceable accuracy reaches 99.9%; the production process is systematic and the overall efficiency has increased by 5%; Stelang can reduce manpower input, in other word, they can save 88H/month of labor hours for statistical reports and workshop planning and scheduling, and avoid the paper waste and transmission; The platform can record the whole production process and monitor the hazardous status real-time, which help to improve product quality by 5%, reduce production loss by 2%, and raise the existing OEE standard by 3%; The informatization will further develop a better brand image, and the in-depth implementation of the integration of the automation and informatization make Stelang step forward in becoming an industry benchmark.

YIZUMI Yi+ intelligent manufacturing platform has provided, so to speak, a strong support to Stelang's industry extension strategy.

"In the future, the potential of domestic coffee market will be huge, which has made us be more assertive to compete on the coffee machine racing circuit." Chen Guolun said confidently, "We will constantly cultivate the coffee machine market and facilitate the new development and business models of the industry with our rich experience and excellence products, moreover, let coffee draw more people's attention.”

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