9.9 Yuan: from coffee to bread!
The trend of ¥9.9 ($1.39) low prices, which began with Luckin Coffee and Cotti Coffee in 2023, has swept across the entire Chinese coffee market. Now, this trend is gradually making its way into the bakery market as well. ¥9.9 items with free shipping is also being used as a key promotion in JD’s 618 ecommerce festival.
On 17 May, a chain bakery named Mokatown opened the country’s first “9.9 RMB Selection” concept store in Hangzhou. Reportedly, the store offers over 40 products, primarily featuring bagels, croissants, and small breads, with more than 95% of the items priced at 9.9 RMB. Photos posted by netizens show that business was booming on opening day, with the store offering raffles and free samples, attracting enthusiastic participation from consumers.
The bakery’s storefront is decorated with large orange "9.9" digits to attract customers. The images are sourced from the WeChat public account @全球烘焙指南.
As early as December last year, many cities had similar bakeries that attracted consumers with low prices as their core selling point. On RED, one can find numerous stores named the "2 Yuan Bakery" or "3 Yuan Bakery," offering dozens of bread varieties priced between 2-3 yuan (27c-41c).
Netizens shared photos of these 2 yuan bakeries from all over China. The storefront decorations attracting many consumers while also raising more questions and doubts. Images are from RED.
These types of shops have faced numerous food safety issues amidst their popularity. Many netizens have mocked them, saying things like "the bread is filled with technology and tricks" and "they boldly claim it's freshly baked when it's actually all frozen bread." However, some people have responded less critically, stating that "If it exists, it must be reasonable." From the images, it is clear that many low-price bakeries are situated in commercial areas with low rent and poor environments. Their marketing strategies and management practices suggest a potential exploitation of customers for financial gain, making the concerns raised by consumers quite understandable.
Well-established Beijing bakery brand Yili faced criticism when they introduced coconut milk bread priced at just 0.99 yuan per piece, with consumers expressing that "Money was saved, but it was hard to swallow." Images are from RED.
Currently, due to the lack of products that can generate sufficient profits, these low-price bakery shops remain fragmented and essentially serve as a form of resistance against high-priced bakeries. At the same time, for consumers, affordability is an important but not the sole factor to consider.
