The launch of Reborn Coffee on Amazon extends the OMNI-Channel strategy for the development of e-commerce

Reborn Coffee has officially launched on Amazon as part of an OMNI-channel strategy that aims to increase revenues and gain greater share in the online market. The global coffee market is projected to reach $144.7 billion by 2025, with the US online specialty coffee market growing at an 8% CAGR to reach $5.5 billion by 2025. Leveraging the Amazon platform, Reborn Coffee intends to capture 1% of the market in 2024, which will translate into revenues of USD 45 million and 1.5% by 2025, ultimately reaching USD 82.5 million. This move is expected to expand the brand’s presence, ensure reliable delivery and integrate online and offline experiences.

Positive

The launch of Reborn Coffee on Amazon expands its OMNI-channel strategy, strengthening its online presence.

The global coffee market is expected to reach $144.7 billion by 2025, representing significant growth potential.

The U.S. online specialty coffee market is expected to grow at an 8% CAGR, reaching $5.5 billion by 2025.

Reborn Coffee’s goal is to capture 1% of the online specialty coffee market in 2024, which will translate into revenues of $45 million.

By 2025, Reborn Coffee plans to achieve 1.5% market share and revenue of $82.5 million.

Using Fulfillment by Amazon ensures fast and reliable delivery.

Leveraging Amazon’s advanced marketing tools and data analytics will improve your brand presence and marketing strategies.

Negative

The company’s revenue projections depend largely on gaining a certain market share, which may not be guaranteed.

The operational costs associated with fulfilling orders through Amazon can impact profit margins.

Intense competition in the online specialty coffee market may limit growth potential.

Success depends on the effective integration of online and offline sales channels, which can be a logistical challenge.

The decision to launch Reborn Coffee on Amazon is a strategic move to capitalize on the growing online coffee market. In line with industry trends, the U.S. online specialty coffee market is expected to grow at a CAGR of 8% to reach $5.5 billion by 2025. By adapting its sales strategies to these forecasts, Reborn Coffee is preparing to capture some of this growth. The company’s goal of gaining 1% market share translates into revenues of $45 million by 2024, which is ambitious but achievable given Amazon’s massive customer base and solid logistics support.

By leveraging Amazon’s advanced marketing tools and data analytics capabilities, Reborn can increase its brand visibility and refine its marketing strategies. Using Fulfillment by Amazon (FBA) ensures fast and reliable delivery, which is important for maintaining customer satisfaction and loyalty in the competitive specialty coffee market.

However, investors should consider potential challenges such as the inherent competition on Amazon and pressure on profit margins from fees associated with FBA and advertising on the platform. Despite these considerations, this move is likely to strengthen Reborn’s presence in the market and lead to significant revenue growth in the long term.

Financially, Reborn Coffee’s projections of $45 million in revenue in 2024 and $82.5 million in 2025 through the Amazon channel represent significant growth. If these forecasts are realized, they will significantly improve the company’s financial results and market valuation. The company’s focus on incorporating data analytics into its go-to-market strategies points to a data-driven approach that is likely to optimize sales performance and operational efficiency.

Investors should view these forecasts with cautious optimism. While the target growth rates and market shares are achievable, they are dependent on the successful execution of the OMNI-channel strategy and maintaining product quality. Dependence on Amazon also comes with variable costs and competitive risks that need to be managed effectively. In the short term, the impact on shares could be positive as the company shows progress in gaining market share. In the longer term, continued revenue growth and market expansion will be key to maintaining investor confidence.

18/06/2024 – 08:31

Expanding your e-commerce presence to increase revenue and gain online market share

BREA, Calif., June 18, 2024 (GLOBE NEWSWIRE) — Reborn Coffee Inc. (Nasdaq: REBN), (“Reborn” or the “Company”), a California-based specialty coffee retailer, today announced its official launch on Amazon. This strategic move strengthens the Company’s OMNI channel-led approach, which aims to deliver significant revenue growth and capture a broader online customer base.

According to Grand View Research, the global coffee market is expected to plateau $144.7 billion by 2025, a significant part of which will be specialty coffee. In the United States alone, the online specialty coffee market is expected to grow at a CAGR of 8% from 2023 to 2025, reaching an estimated value of approx $5.5 billion until 2025.

By launching on Amazon, Reborn Coffee will gain access to millions of potential customers, leverage advanced marketing tools to increase brand presence and drive traffic, provide fast and reliable delivery through Fulfillment by Amazon (FBA), leverage data analytics to inform marketing strategies and product development, and enhance our OMNI-channel strategy by integrating our online and offline presence to provide a seamless customer experience.

“We are excited about our launch on Amazon, which represents a significant step in our OMNI-channel strategy,” said Jay Kim, CEO of Reborn Coffee. “Amazon’s vast reach and robust infrastructure will enable us to connect with more customers, deliver exceptional coffee experiences and deliver significant revenue growth. Known for quality and ethical sourcing, our specialty coffee beans will appeal to discerning online customers. We are committed to providing high-quality coffee and look forward to expanding our online presence.

Reborn Coffee aims to capture a significant share of the online specialty coffee market, which is expected to grow significantly. Using the Amazon platform, the Company plans to capture 1% the online specialty coffee market in 2024, which translates into approx $45 million in income. By 2025, Reborn intends to increase its market share to 1.5%targeting around $82.5 million in income.

These forecasts are based on the Company’s comprehensive marketing strategies, the strength of its product offering and the growing online coffee market. Reborn’s presence on Amazon is expected to significantly increase revenues by expanding its customer base and increasing sales volumes.

About Reborn Coffee

Reborn Coffee, Inc. (NASDAQ: REBN) focuses on serving high-quality specialty coffee in retail outlets, kiosks and cafes. Reborn is an innovative company that strives to constantly improve the quality of coffee by discovering new technologies and the highest quality services, guided by traditional brewing techniques. Reborn believes it differentiates itself from other coffee roasters with innovative techniques, including sourcing, washing, roasting and brewing coffee beans, maintaining a balance of precision and craftsmanship. For more information please visit www.reborncoffee.com.

Forward-looking statements

All statements contained in this release that are not based on historical facts are “forward-looking statements.” Although management has based any forward-looking statements contained in this release on its current expectations, the information on which these expectations are based is subject to change. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements as a result of various factors, including the risks and uncertainties described in the Risk Factors and Discussion and Analysis of the Situation management’s financial and Results of Operations in our most recent filings with the Securities and Exchange Commission (“SEC”), including our Fiscal 2023 Form 10-K, which can be found on the SEC’s website at www.sec.gov. Such risks, uncertainties and other factors include, but are not limited to, the Company’s ability to continue as a going concern, as set forth in the explanatory paragraph in the audit report of the Company’s independent registered public accounting firm, as a result of recurring net losses, among others. other matters, the Company’s ability to successfully open additional locations described herein as planned or at all, the Company’s ability to expand its operations both in California and beyond (including in connection with increased sales and average unit size in our existing stores), the degree of customer loyalty to our stores and products, the impact of COVID-19 on consumer traffic and costs, fluctuations in economic conditions, competition and inflation. We encourage you to consider these risks and uncertainties when evaluating our forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update these reports for revisions or changes after the date of this release, except as required by law.

Communication

Investor relations contact:
Chris Tyson
Vice President
MZ North America
[email protected]
949-491-8235

Contact the company:
Reborn Coffee, Inc.
[email protected]

A photo accompanying this announcement is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/54886b8f-2183-4ab9-be16-5867dc30714b

Frequently asked questions

What is Reborn Coffee’s new strategic move?

Reborn Coffee has launched the service on Amazon to expand its OMNI-channel strategy and increase revenue.

How much do you estimate the global coffee market will be worth by 2025?

By 2025, the global coffee market is expected to reach $144.7 billion.

What is the expected growth rate of the US online specialty coffee market?

The US online specialty coffee market is expected to grow at a CAGR of 8% from 2023 to 2025.

What are Reborn Coffee’s revenue goals for 2024 and 2025?

Reborn Coffee expects to achieve revenues of $45 million in 2024 and $82.5 million in 2025, capturing 1% and 1.5% of the market, respectively.

How will Reborn Coffee benefit from the Amazon platform?

Reborn Coffee will leverage Amazon’s extensive reach, advanced marketing tools and Fulfillment by Amazon service to ensure reliable deliveries and better customer service.