This afternoon, the new tea in the “top flow” Hi tea released the 2020 annual report.
According to the data of snack generation, as of the end of 2020, Xicha has opened 695 stores in 61 cities at home and abroad. In 2020, Xi tea will add 202 main stores and 102 go stores.
In this “year-end summary”, Xicha also mentioned its store sub brand “xixiaocha” launched for the first time last year, as well as its retail channel business launched for the first time last year, including bottled beverage sub brand “Xixiaoping” and packaged tea.
Let’s take a look.
Nearly 700 stores
In the past year, the expansion focus of hi tea stores is still in the first and second tier cities.
According to the report released today, the 15 cities with the fastest growth in the number of hi tea stores in 2020 are Shanghai, Shenzhen, Beijing, Guangzhou, Chengdu, Hangzhou, Dongguan, Chongqing, Kunming, Wuhan, Nanjing, Suzhou, Xi’an, Ningbo and Foshan. By the end of 2020, Xi tea has 695 stores in total.
“With Guangdong Province as the base and Shanghai and Beijing as the strategic commanding heights, Xicha will occupy the” head advantage “of the first tier cities, and break through 100 stores in Shanghai and Shenzhen in December 2020.” Hi tea said in the report.
In terms of coverage density, in Shenzhen, there is one hi tea shop for every 130000 people; in Guangzhou, there is one hi tea shop for every 240000 people; in Shanghai and Beijing, there are one hi tea shop for every 250000 people and one hi tea shop for every 360000 people respectively. “Last year, its national sales champion store was Beijing Chaoyang Joy City store.” I like tea.
It is revealed that while the original urban layout is densified, Xicha has also entered 18 new cities, and is gradually establishing “waist” support in new first tier cities. In addition, after opening overseas stores in Hong Kong and Singapore in 2018, hi tea entered the Macao market in 2020 and opened its first store.
It is worth noting that the newly established sub brand “xixiaocha” is also stepping up its expansion.
Xiaoshidai introduced that in April 2020, Xicha launched its new store sub brand “xixiaocha”, the first store in Shenzhen Huaqiang beiletaoli. According to the report released today, as of the end of 2020, xixiaocha has opened 18 stores in six Guangdong cities, including Shenzhen, Guangzhou, Dongguan, Zhongshan, Foshan and Huizhou.
The most attractive part of this brand lies in its positioning in the price band below 20 yuan. As the price of xixiaocha is almost half of that of Xicha, it is generally interpreted as a challenge to tea brands with lower price positioning, such as “yidiandian” and “mixue ice city”.
Today, according to a report released by the company in August 2020, Xicha, yidiandian and coco are the top three brands of tea drinking shops most frequented by consumers, attracting 14%, 11% and 9% of the respondents respectively. Like tea is widely loved by consumers aged 25-29, while the main consumers aged 18-24 are a little bit.
“In terms of targeting different age groups, the two brands have different priorities, which may be the reason for their different pricing mechanisms. On average, the price of tea drinks that like tea is 10-15 yuan more expensive than a little bit. ” Analysis of the report said.
In addition, previous industry analysis pointed out that in the post epidemic period, behind the move of some catering brands to “reduce dimension” into a lower price band, on the one hand, catering enterprises hope to extend to a broader consumer market through diversification, on the other hand, it is also the performance of the catering industry to actively deal with and explore a way out under the epidemic situation.
According to the disclosure of Xicha today, in 2020, xixiaocha will sell more than 1 million cups of drinks. The annual sales champion product is nenxiancao Grand Slam, and the top three cities in sales are Shenzhen, Dongguan and Guangzhou in turn.
Over 80% of online orders
“If it’s a brand new product on the market, plus the version of the original product after polishing and iteration, we launched more than 300 new products last year.” I like tea, which was disclosed to the snack generation today.
According to the report, in 2020, Xicha will launch a new product every 1.2 weeks on average. While developing new products, Xicha also continues to optimize the classic products. Among all the products on sale in 2020, the most popular product among consumers is succulent grape, while the most successful new products include raw coconut milk jelly, etc.
Snack generation noticed that less sugar has become the choice of more than half consumers. The report shows that about 56.6% of consumers choose lower sweetness. “The pursuit of health and less sugar has become the choice of more and more consumers.” “Less sweet” increased by 6.1%, less sweet increased by 3% and zero calorie sugar increased by 2.2%, Xi Cha said.
Interestingly, it is revealed that in terms of sweetness, Shanghai consumers with sweet taste prefer less sugar, which has the largest number of orders for less sugar in China, while Shenzhen has the largest number of orders for more sugar. In addition, men are more likely to drink sweet than women – the number of male consumers who choose “sugar” is 1.5 times that of women, and the number of female consumers who choose “less sugar” is 1.3 times that of men.
From the consumption time point of view, consumers like a cup of tea in the afternoon. “The peak period of daily average orders of hi tea is 14:00-16:00, and the product with the most orders during this period is succulent grape.” Xi Cha said that in a week, the peak time of ordering is the weekend.
“Among all consumers of hi tea, about 81% choose to place an order online. About 24.8% of consumers choose to take out delivery, and 75.2% choose to pick it up at the store. ” Xicha said that in the “Xicha go” wechat app, orders for others accounted for nearly 20%.
According to the report, by the end of 2020, there will be more than 35 million members of “Hi tea go” wechat app, and more than 13 million new members will be added in the whole year. According to the data, in 2020, the average waiting time of consumers using the “Xicha go” app to order is nearly one third shorter than when the “Xicha go” app was launched in 2018.
Retail channel business
In terms of the proportion of sales, the market concentration of Chinese tea shops is very high.
According to a report released by inmant in August 2020, in 2019, the sales share of the five top brands, namely, yidiandian, coco Duke, miyue Bingcheng, Xicha and Naixue’s tea, will exceed half of the total (51.9%). At the same time, these brands account for only 4% of the total number of tea shops.
“This shows that China’s tea shop market is dominated by a few heavyweights, while there are many other small local businesses all over the country, most of which operate independently.” Inmant said in the report.
Although they may not be as popular on social media as Xicha and Naixue, in terms of sales, both 1dian and coco have the highest market share, with 17.2% and 14.5% respectively. However, tea loving and Naixue are lagging behind, accounting for only 4.4% and 3.9% respectively.
“The strong performance of these two brands is mainly due to their extensive coverage in the national market, with about 4000 stores each.” The report said.
Inmante said that, unlike 1dian and coco, which can build new stores on a large scale, Xicha and Naixue do not accept any franchise chains, but focus more on product innovation, high-end and online sales. “Given that these two brands have been actively entering retail channels, the market generally expects them to grow exponentially in the future.”
Xiaoshidai introduced that in addition to “xixiaocha”, Xicha also launched another brand-new sub brand “Xixiaoping” in 2020, focusing on sugar free bubble water. This is also the first time that Xicha has launched packaged beverage products. At present, hi bottles have entered convenience stores, supermarkets, Jingdong, tmall and other e-commerce channels.
But at present, this is not the only packaged retail product of Xicha. Xiaoshidai noticed that in March 2020, the flagship store of hicha tmall will go online, and in July 2020, the self operated flagship store of hicha Jingdong will go online. Online, Xi tea not only sells Xi bottles, but also tea, cups and other peripheral products.
In its report released today, Xi Cha said that in 2020, it will sell about 1.4 million bottles of Xi small bottles of bubble water in tmall flagship store, more than 250000 tea gift boxes a week, nearly 80000 popsicles and nearly 40000 straw cups; in Jingdong self owned flagship store, it has sold more than 500000 bottles of Xi small bottles of bubble water since it was put on the shelves in October, and nearly 100000 pieces of Xi Cha popsicles.
For retail business, Naixue, the head brand of new tea, seems to have greater ambition. Peng Xin, founder of Naixue tea, recently told xiaoshidai that the future development of Naixue will have two parts: “one is our offline stores, which is a main carrier for us to provide ready-made and ready-to-sell products to customers. Another is our current retail sector. “
She believes that Naixue’s advantage in retail tea products lies in its brand power. “Customers have a brand plus product demand for retail brands. When customers have a high degree of recognition for your brand, the ready-made retail is a good extension of the category of tea.” She revealed that when stores were closed during the epidemic last year, the sales of tea gift boxes on the Naixue line “surged all of a sudden”, and this year will also increase efforts in tea retail.