On February 14th, China Post became the most surprising player on the coffee track. Post Office Coffee, China Post’s first ‘post office coffee shop’, was officially launched in Xiamen. This is a directly owned and operated store by China Post.

Leveraging their existing brand, the design of Post Office Coffee focuses on the classic retro green tones and their iconic post box, which is a strong signature of China Post.

The product choice is diverse, American, latte, cappuccino and other popular options are all available, with the cheapest cup only costing 22 yuan.

If this test is successful, the potential market opportunity for China Post is staggering. Leveraging its existing operating points across the whole country, it could roll out its coffee business both fast and at scale. Previous data showed that China Post, no matter in urban or rural areas, has nearly 9,000 logistics departments, 54,000 branch offices and 420,000 cooperative site resources with a comprehensive information system.

China Post upgraded the original postal office structure for the launch of Post Office Coffee. On top of the universal postal service, it also delivers coffee drinks and cultural and creative services.

The categories sold by Post Office Coffee include coffee, tea, desserts and peripheral products of China Post.  Specifically, the price of coffee and tea is between 20 and 40 yuan, and the store provides two services: pick up at the store and deliver to your home. The most affordable is Classic Americano, which costs 22 yuan for a cup, while the most expensive is 38 yuan.

We look forward to seeing how this diversified approach performs and evolves soon.