China Food

Lucky can’t dry Starbucks, but like tea can

new tea can steal the business of desserts, fruit shops, ice cream shops and bakeries, and make the new coffee brand difficult. However, if we want to become a towering tree from the dominant side, we still need to pass the test. No matter what kind of beverage is, from the functional point of view, it is to replace water, and the ultimate rival is the company selling water.

People in line have a common goal: to buy a cup of tea with “pleasant appearance”. In this case, a cup of tea, which was originally priced at about 20 yuan, was up to 500 yuan.

This is the first time that “tea color” originated in Changsha has come out of Hunan, and it is also the nth time that domestic tea drinks have been sought after by thousands of people.

In March last year, Xi Cha, who had people “wait in line for two hours and drink tea for five minutes”, got a new round of financing, and its valuation doubled to 16 billion yuan. In October, MI Xue Bingcheng got the investment of Longzhu capital of hillhood and meituan, with a valuation of 20 billion yuan. Recently, Naixue’s tea also got the fifth round of financing, with a valuation of 13 billion yuan.

No one seems to be able to prevent the present tea from becoming a new generation of Oriental magic water.

So here’s the problem:

1. What is the essence of the business of the new tea drinks, which are represented by the likes of tea and the beauty of tea?

2. How much market can new tea take?

3. Who is the biggest opponent of tea lovers?


The secret of the rapid development of tea brands is hidden in the market: it’s written on the menu.

Take Xicha for example, its current products can be roughly divided into six categories: fruit tea, milk tea, alcoholic drinks, bread, ice cream, bottled drinks.

Milk tea itself is a kind of fat house addictive artifact containing sugar and caffeine. Like tea also plays it in a variety of ways——

(1) Dessert. Taro, coconut, caramel pudding and so on, make the city beauty, dry rice beauty afternoon life-saving water, not only caffeine, but also a little sweet, even colorful.

(2) Add fruit. Strawberry, coconut, orange and other fruit tea is just a routine, but also can add smoothie.

(3) With ice cream. Cone, popsicle, ice-cream cup, who can think, clearly want to drink tea, how to become eating ice-cream?

(4) Add alcohol. Also used Wuliangye, Erguotou, with fruit, cheese, modulation of alcoholic styles, such as drunk peach, drunk grapes, etc.

(5) With bread. Sandwiches, croissants, toast and even cakes are all drunk. Stop struggling and eat more.

The core technology here is that tea itself is sweet, which makes it easy to match with almost any excipients. It not only does not grab the taste, but also makes the residual taste fade faster after drinking, so that people can drink more.

In this way, store products of new ready-made tea brands like Xi Cha have the functions of dessert shop, fruit shop, ice-cream shop, bakery and even clean bar.

In other words, when tea lovers and tea beauties are faced with dessert shops, fruit shops, ice-cream shops and bakeries, it’s just like when smart phones came out and swept cameras, MP3, VCD and other products.

Just a few years ago, there was a saying in the market that 70000 Chinese tea enterprises were inferior to Lipton. It is said that although there are many famous teas in China, due to the low degree of industrialization, opaque price, nameless brand of famous teas and other reasons, the domestic tea enterprises can only make small trouble and make small fortune, and the profits of the tea market are all made by Lipton who makes tea bags.

However, after finding the core technology to transform into fat house water, Chinese tea is not only very popular, but also has an unexpected effect.


There are also domestic coffee brands such as Ruixing and Lian coffee, which have been growing up for almost the same time as Xicha. But compared with the hot tea brands, they are much dimmer.

In Europe, America, Japan, South Korea and other countries, coffee is deeply loved by migrant workers with its strong taste and refreshing effect. According to Frost&Sullivan data, the consumption per capita of coffee in Germany was 867.4 cups per year (2.4 per person per day), and the United States was 388.3 cups, while the Chinese mainland only had 6.2 cups, and it was also far lower than the consumption of coffee in China’s Hongkong and Taiwan regions. The consumption of coffee in 2019 was much lower than that in the mainland.

The new brand that chooses coffee track often tells a story: the gap between Chinese mainland and mature coffee market means the huge market potential of supply and demand ends. But throughout the ups and downs of lucky, Costa and even coffee in recent years, it seems that the domestic coffee market is not as simple and optimistic as ppt.

For example, Ruixing only took 18 months from its establishment to its listing in May 2019. But now, after another round of 18 months, Ruixing, after a storm of thunder and delisting, is quietly using discount coupons to continue to survive.

Another example is Costa, which entered the Chinese market in 2006 and has always been regarded as the biggest competitor of Starbucks. In the first few years of entering China, its expansion speed was once 2.5 times that of Starbucks, but it has been closing stores in recent years. Now there are only more than 400 stores in China, about one tenth of that of Starbucks.

Another example is even coffee, which used to be a coffee takeout, but later created its own independent brand, which was once the favorite of capital and obtained multiple rounds of financing. In April 2019, even coffee began to close a large number of stores in Beijing, Shanghai and other places. Today, even coffee has given up its special in-situ store and delivery business, and has become a comprehensive store selling a small amount of coffee and more capsules, concentrate, freeze-dried powder and cold extract.

There are four reasons why it is difficult to make a new coffee brand——

(1) Coffee has less room to move than tea. Instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee, instant coffee. In other words, there is no fruit in coffee.

(2) There are already giants. Now, there is Starbucks; instant, there is Nestle.

(3) Cheap coffee can’t beat convenience stores, McDonald’s and even gas stations. There must be a market for coffee under 10 yuan, but the cost of building a new product and brand is too high. It’s better to sell two cups in convenience stores, McDonald’s and gas stations.

(4) The new milk tea is inserted horizontally. Most people drink coffee for the sake of caffeine, which is also found in tea, and the caffeine given by tea lovers and tea beauties is a little sweet.

Perhaps Ruixing is the most clear about how fierce the cross-border attack of milk tea is. Now it has “learned from other countries” and launched “light milk tea” with cream.

Since I can’t beat you, I’ll join you. No problem.


New tea drinks can take away the business of desserts, fruit shops, ice-cream shops and bakeries, and make new coffee brands difficult. However, if they want to become a towering tree, they still need to pass.

No matter what kind of beverage is, from the functional point of view, it is to replace water, and the ultimate rival is the company selling water.

At present, the most successful beverage in the world is coke, which can be said to be the closest substitute to water in human history. With its clear taste, sweet aftertaste and no residue in the mouth, the general public can easily accept it and are willing to refill it indefinitely. Coca Cola’s market value is as high as 1.3 trillion yuan. The market value of Starbucks is only about 750 billion.

Nongfu Shanquan, which was listed last year, has become the industry leader with an annual income of more than 24 billion yuan, a gross profit margin of 60% and a net profit of 5 billion yuan due to the fact that it has almost no production cost to “move water” and has no marginal cost to sell new drinks through existing channels. Now its market value is more than 600 billion yuan.

For those who produce new type of fat house water and aim to replace water, making bottled drinks, expanding sales radius and reducing store and labor costs are almost foreseeable in the future.

As early as last year, Xicha launched its sub brand “xixiaocha” and began to sell fruit juice. Later, it launched a soda product line and found Shanghai Yanzhong beverage factory as an agent. It made bottled drinks with 0 sugar, 0 fat, 0 calorie and dietary fiber, including grapefruit Lvyan tea flavor, Taotao Oolong tea flavor, grape Lvyan tea flavor and so on. Later, it chose to launch in Weiya live broadcast room Then quickly shop to 711, family, box horse and other store channels.

In addition to being able to store and expand the sales radius, the biggest feature of hi tea soda is that its price is lower than that of the ready-made tea drink. It costs 5.5 yuan per bottle, which is far lower than the price of 20 yuan or 30 yuan in stores. Obviously, we should aim at more and wider consumers.

When Xi Cha goes out of the bottled beverage market, the question becomes: if Nongfu Shanquan and Wahaha are also interested in this profit, will they directly enter the market with their ready-made brand and channel ability?

reference material:

1. IResearch consulting, Research Report on China’s ready made tea industry in 2019

2. Guohai Securities, Yu Chunsheng, “new tea industry competition is fierce, expand category + market sink to seek growth – new tea industry depth report”

3. Huachuang securities, Wang Weina, can Starbucks break halberd tea, milk tea shop support large market value company

Author: Dong Xiaowei, Yao Shuheng; source: Yuanchuan Business Review (ID: ycsypl), reprint authorized. Joining the community: Cherry (wechat: 15240428449); business cooperation: Amy (wechat: 13701559246). high quality original selection column hot news in a week | innovation interview – lingting | new Xiu brand | trend insight | packaging outpost food people are “watching”

Read the original

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *