economy
40 Yuan网红 Cakes Close 180 Stores in a Year - 36Kr
Internet-famous bakery KUMO KUMO and others are rapidly closing and shrinking, unable to achieve long-term popularity due to a lack of sustained customer traffic.
TL;DR
- KUMO KUMO has closed over 180 stores in the past year, withdrawing from multiple provinces and cities.
- The Roll'ING, founded by the same person, has also closed nearly 60 stores in the past year.
- Both brands were known for their eye-catching packaging, higher price points, and creating a sense of luxury.
- Initial success was driven by creating scarcity through long queues and purchase limits.
- A lack of new product launches and reliance on a single product category (cheese cake for KUMO KUMO, Swiss rolls for the Roll'ING) failed to maintain consumer interest.
- The rise of more affordable Swiss rolls and cheese cakes on platforms like Hema and JD.com has diverted customers.
- Copycat brands have also diluted the market value of KUMO KUMO and the Roll'ING.
- High operating costs, particularly rent in prime commercial areas, became unsustainable as customer traffic declined.