China Food

500000 stores and 1301 counties, milk tea brand “roll” into the sinking Market


tea industry has gone through the stage of savage growth and horse racing enclosure. It seems that the victory has been divided, but the ceiling of the industry has not yet been touched.

Some time ago, many relatives came to ask me: now the business of milk tea shop in my hometown is booming. How about joining a famous milk tea brand in the county?

Three years ago, this idea was worth considering, but now I would suggest him to consider it again. Don’t let hundreds of thousands of people drift away.

Every time I go back to my hometown town with a resident population of more than 300000, I see the crazy invasion of chain franchise brands such as mixue ice city, Guming, chabaidao, shuyishaoxiancao, chabaidao, etc., the bayonet is red, and the battle of tea brand sinking is intensified.

Business goes on and on.

When the ceiling of a category is very high and the entry threshold is very low, there will be a continuous influx of people. This is the development of tea category.

In recent years, the Internet and consumption upgrading have entered the second half, and “sinking” has become a trend. Almost all milk tea brands have experienced “sinking”, and the third and fourth tier cities and counties have become the last blue ocean for them.

In recent years, the growth rate of new tea products has exceeded imagination, and the development trend has gradually moved from the first and second tier to the third, fourth and fifth tier, and even accelerated the attack on county-level cities and towns.

Based on what I’ve seen and heard, I’d like to talk about the hot topic of “sinking” of new tea drinks. This paper focuses on the “sinking campaign of tea drinks”, with the core points as follows:

1. The new tea sinking campaign is imminent;

2. New style milk tea sinking ceiling now?

3. How many opportunities are there for new tea brands?

This article will discuss the development trend and future opportunities of new tea drinks in the past two years. This article is only personal thinking, and there is no right or wrong point of view. Welcome to discuss and correct.

New tea brand sinking campaign

When the first and second line traffic peaked has become a trend, the sinking market is undoubtedly a fertile land for traffic.

1) When did the concept of “sinking market” rise?

The concept of “sinking market” first appeared in the Internet industry. As the mobile Internet entered the second half and the traffic peaked, “sinking” is generally considered as the source of growth.

The same is true for the catering industry. In the first and second tier cities, the dividend of channels and traffic has peaked, and they begin to place their hopes on a broader sinking market to achieve profitable growth.

Source: 36kr official account

Take tea as an example. In 2012, Xicha took the lead in leading the trend of tea upgrading, and then a number of new tea brands sprung up, and then took root in the first tier cities and gradually extended to the second tier cities, with the market scale expanding.

In 2020, the total scale of China’s tea market is 442 billion yuan. Among the 442 billion yuan tea market, the scale of new tea market is expected to reach 102 billion yuan by the end of 2020.

According to meituan’s review data, by the end of the third quarter of 2018, the number of China’s existing tea shops had reached 410000, an increase of 74% in one year. By the end of 2019, there will be about 500000 tea shops in China. At the beginning of 2020, affected by the epidemic, the flow of people will decrease sharply, the number of tea shops will increase, and the expansion of new shops will also be affected. By the end of June 2020, the number of China’s ready-made tea shops is about 480000, which is 20000 less than that at the end of 2019.

The number of stores of China’s ready-made tea brands is increasing rapidly. At the same time, with the upgrading of consumption, the average per capita of tea categories is also rising.

As of September 30, 2020, the average selling price of ordinary ready-made tea is 13 yuan, while the average selling price of high-end ready-made tea shops is no less than 20 yuan, according to the consulting report.  

2) When did the new tea products begin to “sink”?

Probably from 2018.

At that time, many tea brands were scrambling for territory in the first and second tier cities. With the increasing pressure of market competition, the scale layout was basically saturated, and the market was extremely difficult to chew.

Adequacy index of first line and first line milk tea shops in the third quarter of 2020

Photo source: Research Report on China’s urban vitality in the third quarter of 2020

According to the Research Report on the vitality of Chinese cities in the third quarter of 2020 released by Baidu map, the adequacy index of milk tea shops in first tier and new first tier cities is top 10. The higher the index is, the more milk tea shops there are per 10000 people.

When the first and second tier market dividends fade, they can only seek a broader world, and the first tier brands gradually seek new growth points from the third and fourth tier cities.

Then we can see that there are thousands of tea brands and tens of thousands of stores that have made their fortune in the “sinking market”. They have quietly achieved super volume in the relatively loose competitive environment, but they are crying for the first-line tea brands.

For example, during the epidemic period of miyue ice city, there were tens of thousands of stores, and the news of upcoming IPO came out many times; Tea brands such as Guming, shuyishaoxiancao and yihetang are speeding up shop opening and reaping the dividends of the sinking market.

Photo source: meituan Review & prospective industry research

In the past two years, brand “sinking” has become a hot trend in the tea industry.

According to AI media consulting data, from 2016 to 2019, the growth rate of tea market in third tier cities and below has reached 138%, exceeding the growth rate of 120% in Beijing, Shanghai, Guangzhou and new first tier cities; At the same time, the closing rate of tea stores in the third tier cities and below is 15%, which is far lower than that of 55% in the first tier cities.

Everyone seems to have foreseen the broad opportunity of “sinking market”. Last year, some tea brands only fought in the first and second tier cities. This year, they can be seen in the streets of the third and fourth tier cities and counties.

Next, let’s talk about the sinking battle of tea brands. To be exact, the sinking campaign of milk tea started three years ago. It was led by some tea brands focusing on the sinking market, such as miyue ice city, yihetang, Guming, and so on. Through the differentiation of channel positioning, it gained more business opportunities in the third and fourth tier market. In particular, the revenue of miyue ice city has reached 6.5 billion yuan in 2019, with more than 10000 stores in 2020.

Then the first and second tier tea brands began to speed up the pace of the layout of the sinking market, and the sinking campaign of tea brands was imminent.

01 sinking market monopolized by chain brands

In the past two years, as long as I go back to my hometown, I can see the ancient tea all over the streets, and I can see another ancient tea across the street. A little bit, honey snow ice city and Yifang can open two or three in a commercial street. Then, cha bai Dao, Shu Yi Shao Xian Cao began to join the war of plunder.

Source: official account of the cafe

In the third and fourth tier cities and county-level city centers, we can often see several chain tea brands fighting hand to hand.

Take the county town of my hometown as an example, there are more than 20 tea shops in a commercial street, about 10 of which are national chain stores, and the remaining 3-4 are local chain brands. The most number of self created tea shops is 1-2, which are directly opposite or next door.

Source: official account of the cafe

In fact, this is the case in many regions and cities across the country. According to the statistics of Carmen media, in the city center, pedestrian streets and county towns, 70% of the tea shops are occupied by chain brands such as mixue Bingcheng, Guming, Yidian, yihetang, shuyishaoxiancao, chabaidao and Yifang, 20% are regional chain brands, and the rest are self created tea brands.

In the sinking market, the competition norm of tea brands is that the head brands occupy the golden place of the city, the waist brands occupy more high-quality channels and human resources with the advantage of size, and finally the local chain tea drinks are sandwiched in the middle, so the living space is squeezed.

02   Head brand speed up the attack of sinking Market

The sinking market is becoming the second half of tea brand competition.

The battle of tea brands in the first and second tier cities is burning, and even Xicha has released the signal of compromise to the sinking market. On the one hand, through the development of the lower priced sub brand “xixiaocha” and bottled bubble water, it has been extended to the third, fourth and low line markets originally belonging to miyue ice city.

Image source: Internet

The main price of Xixiao tea is 11-16 yuan, and the lowest product is only 6 yuan. They bow to the market and grab the jobs of “honey, snow and ice cities”. Obviously, this is an important measure for Xicha to enter the affordable market.

On the other hand, adhering to the brand tonality, Xicha began to speed up its layout to the third and fourth tier cities, looking for new increments. According to the annual report of Xicha 2020, by the end of 2020, Xicha has opened 695 stores in 61 cities at home and abroad, firmly occupying the first tier cities, and simultaneously going deep into new first tier cities and second tier cities.

It is rumored that in 2021, Xicha plans to open 1000 stores, 30% of which are in the third tier cities, speeding up the pace of sinking.

03   Waist brand to seize the sinking Market

2020 is the turning point for the development of the new tea industry. First, it is impacted by the epidemic black swan. Second, the living space of the first and second tier market shrinks, and the waist brand has to extend its business front to a relatively less intense sinking market.

Not only is public opinion hot, but capital is ready to move. Last year, Guming, Auntie Hushang and other tea brands focusing on sunken track gained capital investment, which undoubtedly enlarged the opportunity of “sunken market”.

These waist tea brands, with the help of capital or franchise mode, continue to explore more remote cities and find broader markets.

In November last year, Auntie Hushang, who specializes in “instant cooking of five grains and tea”, received nearly 100 million yuan of round a financing. The founder said that the capital increase would focus on the supply chain and create core brand barriers. The next step is to focus on the sinking market, continue to cultivate the supply chain construction and accelerate the layout of the cold chain.

Source: official account of the cafe

Also last year, Qifen Tian, the main producer of “Mango drink”, obtained a large amount of financing with a capital of 150 million yuan, took the store in a reverse crazy way, gradually carried out channel sinking, and planned to set up branches in major cities and important cities, looking for resource-based partners in the local area, so as to further develop together.

The waist tea brand has gained the investment of capital and stepped up the improvement of supply chain and operation. It can be seen that the ambition of brand penetration into the third, fourth tier and offline cities is self-evident.

04 the homogeneity of tea products is serious

In the past, the menu of milk tea shops may not change in 20 years, but the competition for tea is fierce, the Internet speeds up the dissemination of information, and the first and second tier popular products are appearing more and more quickly in the third and fourth tier cities and offline cities.

In the past, it took half a year or even a month. Now it takes only a week or even less for popular drinks to reach the county.

Due to the low entry threshold of the industry and the easy imitation of product formula, new products are easy to be imitated and copied by competitors. Whether it’s head brands or street stores, plagiarism has become the norm, which also leads to the homogenization of products among tea brands.

Yangzhi manna of various tea brands

Photo source: unitary south south official account

From the product point of view, tea brands have basically made fruit tea, cheese tea and milk tea. Now we find that every family sells products such as Yangzhi manna, succulent grapes, taro mud Bobo, and so on, but the products still lack barriers.

From the taste point of view, there is little difference in the taste of the same product among Naixue’s tea, Xicha, Guming, Qifen sweet, coco and other brands. For example, a kind of Yangzhi manna, in addition to the price difference between tea and 7 Fen sweet, is hard for most consumers to distinguish the taste.

When the competition of the first and second tier cities is saturated, the relatively less tight sinking market will naturally become the competitive chassis.

Shan Weijun, the founder of Shanghai aunt, once said: “the head brand will squeeze the waist brand, and the space for small and medium-sized brands will be smaller and smaller. In the future, the chance of survival of miscellaneous brands is very small. “

The tea market in the first and second tier cities has been saturated. With the rapid sinking of major tea brands, the competition in the third, fourth tier and offline cities has become increasingly fierce. In the future, it will be the competition in the stock market.

Has the sunken ceiling of tea products been seen?

The real sinking of tea brands, the ceiling of the war has not yet appeared, is still the state of horse racing enclosure, who can seize more market share, who will become the leader of the tea track.

Xie Huancheng, the founder of 7 points sweet, once said in an interview: “the tea industry has gone through the stage of barbaric growth and the stage of horse racing enclosure. In the first two stages, a number of thousands of brands have been hatched. It seems that the victory has been divided and the pattern has been formed. But in fact, I don’t think the real war has begun. “

From the perspective of the whole tea market, there is no real tea brand covering the whole country. Most of the brands are still in their own regional market competition, and there is no positive confrontation.

Although the number of stores in miyue ice city has reached more than 12000, there are still some cities that are not densely covered, and there is still huge space for sinking.

01   Change of investment direction in tea market

In 2020, there will be 18 cases of financing for tea brands. According to the disclosed data, by the end of 2020, 5 billion yuan has entered the new tea circuit.

Before that, capital preferred to pay attention to brands such as Xicha and Naixue at the head of the track, but it was difficult for most capital to queue up to enter the next few rounds of financing. It is understood that in the round B financing of Xi tea in April 2018, a number of institutions held a lot of money and failed to win half of the share.

Now the market frequently spread the news of Naixue, Xicha and other head brands IPO, so the capital gradually inclines to the waist brand.

Based on public data

Data processing: Lacquer ordering Restaurant

If you look carefully at the financing of new tea in 2020, you will find that in addition to focusing on the head of the track, the capital will also consider the track, the sub category, and the advantageous brands in the mode, channel and supply chain.

In fact, since last year, the wind direction of capital investment in tea and drink track has changed. One is to pay attention to the subdivision of tea and drink track, the other is to pay attention to the waist strength players and sinking market brands.

Among the brands that got financing last year, Guming, auntie in Shanghai, Qifen Tian, Xiaoman tea field and other waist brands all got large amount of financing.

Among them, 7 points sweet choose “Mango drink” subdivision category; Shanghai aunt is to cook “five grain tea” into the track; Xiaoman tea field is dominated by chelizi. These brands have one thing in common. In the early stage, they all get differentiated development by cutting into the subdivision of the track.

Image source: Internet

Guming tea is a chain brand rooted in the third, fourth and fifth tier sinking market. Its price is between 9-22 yuan, which is much cheaper than Xicha and Naixue whose price is 19-36 yuan. Therefore, Guming tea has replaced Xicha in the sinking market.

With its store intensive strategy, Guming has opened thousands of stores in Jiangsu, Zhejiang and Shanghai. Zhejiang alone has more than one thousand stores, and at the same time, it has rapidly entered the adjacent markets of Anhui, Fujian, Jiangxi and other places.

Of course, we can also see that some new models derived from the existing tea brands begin to attract capital attention. For example, Chali, the head tea bag brand, received a round B financing of 100 million yuan.

The capital pays attention to the subdivided track and sinking market, which may indicate that the next “Hi tea” is likely to be born in the sinking market of the third and fourth line. In general, the change of the direction of capital investment will lead to the change of the pattern of tea industry.

02 sinking markets and remote cities become hot spots

Cbndata’s “2020 new tea white paper” points out that the layout of new tea brands in the first and second tier cities is basically saturated, and the brands are gradually seeking new growth points in the third and fourth tier cities.

The reason why tea brands are exploring one after another is that China’s consumer market is pyramid shaped, and the biggest market is not at the top, but at the bottom. In addition, the consumption capacity and consumption concept of the second and third tier cities will be greatly improved, which will release the huge consumption potential.

For such products as tea, the sinking market is a real gold mine, and there is a trend of sinking to more remote and more bottom line cities.

Source: official account of the cafe

Miyue ice city has more than 120 million stores across the country. Following the extreme sinking strategy, its stores are distributed in the third and fourth tier and below county-level cities in Henan, Hebei, Shandong, Sichuan and other provinces, and have basically reached the point of “contracting”.

At the same time, when selecting the location of miyue ice city, stores are clustered around the school, commercial pedestrian streets, villages in the city, stations and other areas with large passenger flow. These areas are easy to have a large number of students, young people and other target consumers gathering, which is easy to form a stable repurchase rate.

Photo source: meal eye app

In addition to continuing to cultivate the remaining space of the third and fourth tier cities, counties and towns, miyue ice city also continued to explore the relatively difficult northern market.

It is understood that in the second half of last year, miyue ice city opened three stores in Qitaihe City, Heilongjiang Province, and the layout of tea brands has reached the northernmost town.

In addition, tianlala, which made its fortune in Bengbu, Anhui Province, focuses on the sinking market. 70% of its stores are located in the county, and it has 3500 stores. In the sinking market, it meets the different product pursuit of consumers by adding new products and subtracting total raw materials through different combinations.

Not only the above two brands, but also chain tea brands such as shuyishaoxiancao, yihetang and Guming are opening stores in the sinking market on a large scale.

Whether it’s the capital or the milk tea brands’ attempt to “sink” almost regardless of echelon, the third and fourth tier cities, remote cities and counties have become the gold mines of tea brands, and the lower tier and more remote cities will become the last fertile ground of tea brands.

How many opportunities are there for tea brands?

China’s commercial market is huge. Opportunities are not entirely in the first and second tier cities, but in the vast third and fourth tier cities and counties. The bigger the market share, the better the chance to become the “big brother”.

With the competition of tea brands entering the middle stage, tea brands have already noticed that the operation of the first and second tier cities is almost reaching the ceiling, and the channel sinking has become the standard action in the industry.

Various chain brands are accelerating to penetrate into the third and fourth tier cities and county-level cities. Although the channel sinking has not reached the maximum value, it has already entered the white hot stage.

From the perspective of capital, the financing craze of tea and drink track started in 2016, peaked in 2018, and turned into a turning point in 2020. What will happen in 2021? Let’s wait and see.

At present, we only see the booming tea market, regional brands are separated, and the channels are exploring; But on the other hand, the popular catering brand has extended its hand to the tea track, and the retail brand has begun to cross the border. The tea market has never been so boiling.

The first and second line traffic is peaking, the competition of sinking channels is fierce, and the giants cross the border to grab food. Besides sinking, what opportunities do tea brands have?

01   Northern cities, virgin land to be reclaimed

In terms of the distribution of tea drinks in China, new milk tea brands are concentrated in the south, and less in the north.

According to the statistics of foresight Industry Research Institute, from the regional distribution of provinces and cities in China, the distribution of new tea stores is more concentrated in the South than in the north. The tea market in the north, as a whole, is still in its infancy.

Distribution of Naixue stores in China

Photo source: Naixue’s tea prospectus

The distribution of tea shops in Naixue is an example. According to the tea prospectus of the National Snow, as of September 30, 2020, the tea of the city has 420 stores in 61 cities in Chinese mainland. Among them, Guangdong Province has the largest number of stores, 132, and Shenzhen, where the headquarters is located, has 83, which is enough to dominate all provinces and cities. However, there are only 2-4 in Heilongjiang Province and Jilin Province in the north.

If we trace the origin of the new tea brands in the market, most of them have made their fortune in southern cities. Such as the recognized three tea giants, Xicha and Naixue tea are from Jiangmen and Shenzhen in Guangdong, while Lele tea is from Shanghai.

In addition, there are tea Yan Yuese from Changsha, happy lemon and aunt from Shanghai, 7 Fen Tian from Suzhou, Jiangsu, Gu Ming from Taizhou, Zhejiang, Yi He Tang from Wuhan, Hubei, kawangka from Hefei, Anhui, and cha bai Dao and Shu Yi Shao Xian Cao from Chengdu, Sichuan. These brands are all from southern cities.

From the perspective of brand operation and supply chain construction, these brands will first consider developing in the southern cities close to the base market, rather than running to the far northern cities.

Distribution of Auntie stores in Shanghai

Data processing: meal eye applet

However, there are also exceptions. Although Auntie Shanghai made her fortune in Shanghai, her business shows are mainly in northern cities, with 2400 stores in different channels. Besides 280 + stores in Tianjin, there are more than 400 stores in Shandong and more than 200 stores in the three eastern provinces. Obviously, in the northern market, aunt Shanghai has an absolute market share.

There are relatively few famous brands in northern cities, such as ashui big cup tea, which is made in Jinan, Shandong Province, and 700CC, which is made in Shenyang, Liaoning Province. However, it is difficult to see the brand when it comes out of the birthplace market.

As far as the distribution of tea brands is concerned, the distribution of new tea brands in the north is relatively small, showing that it is difficult for foreign tea brands to enter, and it is more difficult for local tea brands to go abroad.

Generally speaking, the northern market is still a virgin land to be reclaimed in the hundred billion scale of tea. However, chain brands have begun to lay out this last “blue ocean”. I believe that the tea market in the north will be more and more fierce in the future.

There are two reasons why it is difficult to develop the northern tea market. First, from the perspective of supply chain, fresh fruits are widely used in new tea, while the southern cities are prolific in fruits, occupying an innate advantage. In the cold north, the cost of fresh fruits is low, and the cost of preservation and transportation is even more severe.

Second, the peak season is obvious. Compared with the warm southern cities, the cold winter time in northern cities is longer, and many popular tea drinks will lose their advantages in the north.

But aunt Hushang, whose main direction is the sinking market in the north, opened up the north market through the products of “instant cooked five grain tea”. The main ingredients of the products are mainly grains such as blood glutinous rice and red beans. These grains are more suitable for hot drinks, and the raw materials are easier to preserve.

Photo source: auntie in Shanghai

In addition, Auntie Shanghai insists on opening large stores in northern cities, covering an area of 50-100 square meters, and in shopping malls at landmark locations. There is heating in shopping malls and indoors, which reduces the impact of weather on business.

02   What determines the value of an enterprise is the supply chain

In order to become a big brand, one is to have enough market capacity, and the other is to have a strong brand supply chain.

Because whether the supply chain is perfect or not will directly affect the result of market coverage. The more perfect the supply chain, the more long-term the maximum scale and scope of the enterprise can operate.

At present, the “sinking campaign” of tea brands of all echelons is in full swing. The key to win is the coverage of the supply chain supporting brand expansion.

Xicha’s own tea garden in Guizhou

Photo source: Xicha microblog

At present, there is no tea brand that really covers the whole country in the tea track. The reason for this phenomenon is that the scope of tea brand supply chain is limited.

From the actions of tea brands after obtaining financing, no matter in the head or waist, the brand takes store expansion, supply chain upgrading and digital transformation as the follow-up key development direction.

Miyue ice city is able to cover the sinking market in both breadth and depth, while adhering to the principle of low price and high quality. This is due to the fact that miyue ice city has its own independent central factory, R & D center, and warehousing and logistics center, realizing the business model of “production, research, transportation and marketing” in one. This also means that the more stores the ice city has, the stronger its profitability will be.

It is reported that as of June 2020, the total number of stores in miyue ice city has exceeded 10000, while in the same period, there are only more than 400 stores in Xicha.  

From the perspective of business performance, the layout of the supply chain has brought significant benefits to the enterprise data for a long time. It is reported that in 2019, the performance of miyue ice city has reached 6 billion yuan, with a net profit of about 800 million yuan.

Therefore, in this battle of tea brand sinking, who can stand out from it, the supply chain will be the key to win.

03   Stock war, digital member war

I’ve seen a chain franchise brand open nearly a thousand stores, and now there is no complete membership system. We can imagine how backward the restaurant owners’ cognition of digitalization is.

In the past, the research and development of new products relied on traditional market research and keen personal intuition; Now, young brands such as lucky coffee, Zhong Xuegao, Yuanqi forest and perfect diary rely on the interaction between private traffic and users, precipitation, analysis and mining of user data to drive product innovation; More advanced, is to pull a vote of iron powder to create new products.

According to the 2020 white paper on new tea, digital transformation has become the trend of new tea enterprises. The digital construction from site selection, supply chain, channel, new product iteration and marketing will help brands make decisions more quickly and accurately.

When we think that the competition among tea brands is only taste, service and packaging design, digital construction has become an inevitable trend of new tea.

Why is hi tea more concerned by capital?

Because behind the digitization of hi tea is a huge “flow pool”.

According to the official disclosure of Xicha, the number of members of Xicha go app will exceed 35 million in 2020, and the number of new members will exceed 13 million in the whole year. The number of 35 million members is equivalent to the standard of 3.5 super large cities( Super large cities: cities with more than 10 million permanent residents in urban areas)

At the same time, the membership system enables Xicha to have consumption data, such as name, gender, date of birth, telephone number, e-mail and so on.

What’s the use of this data?

In terms of user analysis, data can help Xicha more accurately predict user preferences and optimize user experience. Through the interpretation of the data, we can further guide enterprise decision-making.

Analysis of consumption characteristics behind big data of members

Photo source: Xicha 2020 annual data report

Why pay attention to digitalization and establish membership system? One is that digital marketing has become a must for tea industry strategists. The other is that traffic will become more and more expensive in the future. Only by establishing private traffic through data can we get more living space in the stock war.

As for the article on digital private domain traffic, we wrote in the next opportunity of catering, mining of private domain gold mine. Welcome to review.

04   Where are the second and third curves of tea drinking

The competition for new tea is becoming more and more fierce. If the first curve of tea brand is realized through offline stores, where are the second and third curves of tea brand?

In November last year, Chali Chali, a tea bag brand, completed round B financing of 100 million yuan. It is understood that the financing will be mainly used for channel expansion and the construction of Nansha factory R & D center.

Chali is positioned as a brand of tea bags and a professional tea service provider. Its main product is mixed tea of flowers, plants and fruits. Nearly 600 million tea bags have been sold. It has two offline stores in Guangzhou and also sells ready-made tea drinks.

It can be seen that tea brand is more than tea. So where are the second and third curves of tea enterprises?

Maybe in retail, maybe in the B end, there is no final answer.

Take Starbucks as an example. In its business chart, retail is one of the most important sources of its performance. Every time it comes up with a new product, it can become a popular product and attract a large number of fans to buy it first.

Photo source: Naixue’s tea

Naixue, Xicha and chayanyuese successively set foot in the retail field to explore the second and third curves of enterprises. The ambition of new tea drinks to compete for the retail market is obvious. At present, retail products such as snacks, tea bags, bubble water drinks, cultural and creative peripheral products have been launched one after another to speed up the layout of new retail.

For example, Xicha’s capacity upgrade and sweetness reduction “Xixiaoping” sold 300000 bottles in Weiya’s live broadcast room on the day of its launch.

Not only that, new tea drinks began to set foot in the coffee category. At present, the first Naixue tea Pro store in Beijing has opened. Compared with ordinary stores, the new coffee business has been added, and Xicha has also launched its own coffee products before that.

Whether it’s seizing the coffee market or selling the surrounding tea, more SKUs and more business curves have become the trend of tea shops.



Tea brands that can live well in the future must have no obvious shortcomings, especially those with profound basic skills such as scale, operation and supply chain.

About half a million milk tea stores, hundreds of billions of tea, sinking into a hot war. How to defuse the enemy’s potential energy, keep their own country and build up high enough barriers is the final test for all tea brands.

Data reference:

1. Milk tea, far from the North

2. North tea market survey: the end of milk tea, not in Northeast / Kamen

3. Hundreds of billions of tea, in hot war / DoNews

4. 2020 new tea investment and financing resumption: how many opportunities for sinking market/ Consumer detective

5. All the streets are chain brands! Tea industry will enter the “oligarchy era”

6. Xie Huancheng, the founder of 7 points sweet: after 21 years of working, the real tea war is far from starting/ Professional catering network

7. Analysis on the development status of China’s current tea industry in 2020

Note: the store data is collected from the official website and public data of the brand, and there is a certain deviation from the actual number. The data is as of May 26, 2021

*Disclaimer: under no circumstances shall the information or opinions expressed herein constitute investment advice to any person.

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500000 stores and 1301 counties, milk tea brand “roll” into the sinking Market








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