First overseas store! Coffee baking brand Two Sense will be established in Malaysia

It is reported that two sense, a coffee baking chain brand, has identified a Malaysian business partner, and the first overseas store is expected to open in Malaysia this summer. In the next two years, Two Sense will successively deploy more than 40 stores in ASEAN countries such as Singapore, Indonesia, and Vietnam.
Two Sense originated in Suzhou, with its product portfolio of “coffee+baking+Gelato”, is committed to providing consumers with high-quality dining and creating “leisure social&office space”. In 2022, it became famous with the “Moon Rabbit Song” blockbuster Little Red Book, which originated from its “buyer’s shop” model (the market and R&D team develop new products through cooperation with food lovers around the world).
Two Sense is not the first coffee baking brand to go to sea in China. It was previously reported that Ruixing would enter Singapore and began recruiting store managers in Singapore at the end of last year. What is the attraction of the Southeast Asian market?
According to data from Euromonitor International, coffee retail sales in the six Southeast Asian countries – Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam – reached $6.5 billion in 2019, with a CAGR of 6% from 2014 to 2019, higher than the global average of 5% over the same period. It can be seen that Southeast Asia is also one of the fastest growing regions in global coffee consumption.https://forum.stoneitech.com/
According to the East West Center and other research reports from 2021, the middle class in the 10 ASEAN countries will reach 350 million people in 2030, more than twice the total number of 135 million people in 2015, and the middle-income population will account for 51% of the total population of these countries by 2030.
It can be seen that the huge coffee consumption market in Southeast Asia and the rise of the new middle class and young generation are bound to attract more coffee brands to layout the region. However, while seeing opportunities, the challenges that need to be faced in the layout of Southeast Asian consumer markets cannot be ignored. Due to geographical, religious, cultural, and customs reasons, the Southeast Asian market is relatively fragmented, and there are also certain differences in diet and living habits across the region. For example, Singapore has a small population, but strong consumption power, and a large number of Chinese people, who accept new brands and new things faster; Thailand has a strong entertainment spirit and is more likely to be planted by celebrities and online celebrities, and their focus is on fun.
Regarding the challenges to be faced, Zhu Yuyue, co founder of Two Sense, frankly stated that Southeast Asia is not a whole, and each country and region has its own laws, regulations, and market rules, which need to be fully understood and learned. As the core founder of Two Sense, Aro, is a Malaysian Chinese, and Southeast Asian stores adopt a business partner system, with a localized team in charge (if necessary, the headquarters will assign a management team to provide support), it can quickly adapt to local laws, regulations, and market rules.
At the same time, Two Sense has always adhered to the “buyer’s shop” model in product research and development. By jointly developing new products with food lovers around the world, it can just solve the problem of different tastes preferences of consumers across Southeast Asia.
Zhu Yuyue also revealed that the pace of domestic expansion of Two Sense stores has also accelerated after the Spring Festival. It is expected that three new stores will open in Suzhou by July, and the layout of the Shanghai and Hangzhou markets is also being promoted as scheduled.
Due to the increase in domestic coffee racetrack players, the domestic coffee market has become nearly saturated, and the golden growth era of coffee consumption in first and second tier cities has also passed. At the same time, with the improvement of the economic level in Southeast Asia and the rise of the middle class, this emerging market with a population of 600 million may attract more attention from domestic coffee brands.