How many consumers can
achieve “milk tea freedom” at a lower price?
Recently, there has been a big wave of sharing of “Mini Cup” milk tea on social media. Bloggers mentioned on social media that they can make a “Mini Cup” milk tea by simply ordering a small batch of ingredients, then buying a normal cup of tea and pouring it into a repackaged cup.
For example, if you buy a small amount of 12 yuan medium cup milk tea, and then buy multiple 5 yuan milk cream repackaging, you can repackaging into multiple cups “ Mini Cup.
In the face of this wave of DIY boom, milk tea brands immediately launched their products: during the June 1 Festival, many brands, such as yidiandian and chabaidao, officially came to an end and launched “Mini Cup” milk tea. Last week, Xicha also launched “Mini Cup” limited time activities.
The tea market has not been so lively for a long time, “Mini Cup” has aroused a burst of water, and is gradually evolving into a whole brand upsurge in the milk tea industry.
From the perspective of marketing activities, the “Mini Cup” launched at present is a test of similar flash activities. But the business opportunities of “Mini Cup” can not be ignored. In the short run, the limited activities of the brand have attracted many consumers with curiosity. In the long run, its price can make the brand attract more customers and sell more milk tea.
post about “Mini Cup” on social media, tuyuan xiaohongshu app
In fact, many tea brands need a “cardiotonic”.
The milk tea industry seems to be prosperous, but the actual situation is not optimistic.
Meituan data show that by the end of June 2020, there are about 480000 new tea shops in China, but 80% of them earn less than 150 yuan per day.
The situation of the head enterprise is not optimistic. Naixue’s tea prospectus shows that the brand, which has always adhered to the high-end strategy and the average price of a cup of milk tea is about 30 yuan, is also in a state of long-term loss.
Expansion did not bring the expected growth. According to the “China catering big data 2021” released by meituan, the proportion of beverage stores with more than 20 yuan will increase in 2020, while the proportion of order amount will show a downward trend, especially the proportion of 30-50 yuan will decrease by 5.7%. It means that more and more stores are opened, but the income does not increase with it.
In this case, “Mini Cup” is another round of measures to attract customers. At present, some brands have added “Mini Cup” to the regular menu. In the end, can it surprise the milk tea industry?
Can “mini milk tea” duplicate the sales miracle of mini cola?
“Mini dress” is not exclusive to the tea industry. Past cases have proved that this type of product has a broad market.
As early as 2012, Coca Cola launched a 300ml Mini packaging product, which filled the market gap of small packaging coke and matched the consumption of some consumers. At the same time, it also lowered the price threshold, attracted more consumers with lower prices, and increased the purchase frequency.
Mini Cola has brought considerable benefits to Coca Cola. From 2011 to 2015, compared with the decline of annual revenue of Coca Cola’s traditional packaging products by 1% – 2%, the sales volume of mini Cola continued to rise.
James Quincey, CEO of Coca Cola, once mentioned that the growth of sales revenue of the company in 2019 is mainly due to the branch products of several brands of cola. Among them, the sales volume of 7.5-ounce Mini can Zero sugar Cola in the U.S. market increased by 15%.
From beverage companies such as Coca Cola to snack brands such as liangpin shop and three squirrels, the popularity of small packaging covers many products, and it really meets the needs of some consumers.
In the domestic tea industry, Mini Cup has been popular recently, but it is still unknown whether it will be a flash in the pan or continue to be hot.
A little bit of “Mini Cup” bought by bloggers on Little Red Book app
“Mini Cup” to meet the needs of consumers at the same time, but also can clearly see the drawbacks and bottlenecks.
First of all, from social platforms such as xiaohongshu and Weibo, we can see that young people have a great liking for “cute things”, while the small size of mini package brings a cute feeling and attracts people’s attention, which also stimulates them to share social circles and promotes the secondary dissemination of products.
In the tea industry where products tend to be homogeneous gradually, milk tea brands also need new things to attract consumers.
“Mini Cup” can help consumers control the consumption of high sugar and high calorie milk tea. More importantly, “Mini Cup” is also smart consumption to avoid the waste caused by the “disgusting” of milk tea and the endless drinking of middle cup. That’s why many consumers love it.
However, some consumers pointed out that the “Mini Cup” is small and expensive, which is not worth buying. It also loses the original ratio of the product, resulting in less delicious.
Wired insight found that at present, the price of “Mini Cup” in milk tea shops is generally not expensive. You can drink a cup of mini Yangzhi manna for 7 cents sweet and 6 yuan, and two cups of mini Yangzhi manna from Auntie in Shanghai are 18 yuan, which is equivalent to the normal price.
But a little bit is more expensive. During the period of June 1, the mini products were sold from two cups. For example, two cups of milk green mango were 17 yuan, two cups of mini four seasons milk green tea were 11 yuan, and two cups of mini Boba milk tea were 11 yuan. Two cups of “Mini Cup” were equivalent to one cup of normal tea, but the amount of milk tea was less than that of normal tea.
Mini Cup menu
The brand’s attitude towards water testing has led to different consumer experiences. So far, the “Mini Cup” is still a niche consumer.
It is still unknown whether this popular product will continue to be popular. However, from the perspective of this “Mini Cup” trend, under the anxiety of “introversion” of tea brands, the promotion of “Mini Cup” is undoubtedly a powerful means to enhance market competitiveness.
Can “Mini Cup” save the milk tea industry?
A few years ago, the new tea drinks represented by milk covered tea and fresh fruit tea gradually replaced the first generation of milk tea made with powder and were loved by consumers.
At the beginning of the popularity of hi tea, consumers had to wait in line for several hours before they could drink a cup of milk tea, so there was a dispute about cattle queuing and double the price.
Today, the milk tea industry has become a red sea. In every city, there are countless “milk tea streets” and several brands listed. Consumers have more choices, and even the “net red halo” of head tea brands is weakening.
The current situation of new tea is not optimistic, the head brand does not make money as people imagine.
Naixue’s tea was listed in June. According to the prospectus, the revenue in 2018, 2019 and the first three quarters of 2020 was 1.087 billion yuan, 2.502 billion yuan and 2.115 billion yuan; The net loss was 69.73 million yuan, 39.68 million yuan and 27.51 million yuan.
When most of the brands have not yet come to the stage of profit, but under the pressure of capital, they are seeking to go public, the profit margin of enterprises needs to be improved.
The main reason for hindering the profit of tea brands is the high cost of raw materials, production and preservation. For example, the cost of Naixue’s tea mainly comes from raw materials and employees. In 2020, raw material costs account for 37.9% of revenue, staff costs account for 30.1%, and rental expenses account for 14.8%.
Previously, Xicha, yidiandian, chabaidao and other brands also raised product prices. In April 2019, the prices of many popular products of Xicha all increased, and the prices of Zhizhi raspberry and other products exceeded 32 yuan. In February 2020, the price of the whole line of milk tea products, which has always been considered as the representative of affordable milk tea, will rise by 1 yuan, and the naked price of new products without ingredients will reach as high as 26 yuan.
tea 100 road price rise, tuyuan beiqing.com
On the Internet, there was a “letter to tea powder” sent by Wang Xiaokun, founder of chabaidao, in his circle of friends. It was mentioned that due to the influence of the environment, the prices of raw materials such as fruit equipment and packaging will go up, and the prices of drinks will be fine tuned.
With this rising tide, the price of many brands’ products has broken through the 30 yuan mark. According to chinanews.com, after the Spring Festival this year, the prices of copper, stainless steel, aluminum and other metals have risen in turn, affecting the pricing of various sealing machines, smoothie machines and other tea equipment.
In the same period, the rising prices of plastic particles, paper, PE film, etc. were apportioned to each milk tea cup, and the cost rose by a few cents; The cost of raw materials for seemingly unimportant leaflets, take out bags, corrugated cup holders, etc. has increased by several thousand yuan per ton, which also adds up to a large amount.
In the case of high cost, milk tea shop can only try to attract more customers. In order to compete for consumers, brands have to launch new products all the time and look for popular products. According to incomplete statistics of we media “Gamen”, in the past year, both Xi tea and Naixue tea released 16 new products.
However, there are always a few popular products that provide profits for brands. Whether new products can become popular or not is a gamble of R & D cost.
But many consumers are not willing to pay for high price milk tea. In the current single product price breakthrough 30 Yuan era, the price of the head brand has been close to the ceiling, there is not much room for price increase.
To reduce the price threshold and let more people realize “milk tea freedom”, Mini Cup is undoubtedly a feasible marketing scheme.
At present, in addition to direct sales of “Mini Cup”, the “Mini Cup” can also be used as a gift to drive the sales of new products. For example, the mini packaging “full score Koi Cup” launched in the recent activities of Xi Cha can only be picked up by online stores, and only the new product “full score orange” launched recently by Xi Cha can be given away.
Through this scheme, it is self-evident that “Mini Cup” has brought great attention to Xicha. Mini, help the brand improve new product sales and store traffic.
single order interface of Xicha small program
The milk tea brand does not need to pay more for the “Mini Cup”. Different from Coca Cola’s separate packaging and unified production in the same factory, the packaging of “Mini Cup” milk tea is a separate packaging cup, which does not need to be made separately.
Wired insight found that the rule of “Mini Cup” of hi tea is to order any cup of milk tea at the store, and provide the sub packed cup at the straw, and the consumers can collect it by themselves. A little bit of “Mini Cup” is manually adjusted by employees, but it needs to be purchased from two cups. And Naixue’s tea and other brands are arbitrary point milk tea, and then point small material sub packaging.
Xicha and other “Mini Cup” milk teas do not need to be manually adjusted by store staff, and most of them are purchased by consumers and packaged by themselves. And a little bit of “Mini Cup” staff hand tune, also did not launch a new formula, just a pack into two small parts, the product price is not cheap.
No matter labor cost or efficiency, it will not be affected by the “Mini Cup”, on the contrary, it may also increase store revenue.
At present, the head brand’s attitude towards “Mini Cup” is still in the trial stage. Mini can has not yet become a fixed menu and regular sales category of the brand. It is mainly purchased by consumers themselves. The brand has not designed, produced and packaged separately, and carried out a large number of advertisements and endorsements as Coca Cola did for mini can.
Whether the future tea brands will focus on the layout of “Mini Cup” is still unknown, but this trial work really shows people business opportunities.
the escape of milk tea industry continues,
Middle waist brand is more difficult
At present, the head brand can not escape the fate of loss, so the living space of the middle waist brand is even narrower, which also leads to the “Mini Cup” trend, which is only the carnival of the head brand in the end.
Because the price of “Mini Cup” has been reduced, it is easier for head brands to compete for customers of middle waist brands.
At present, the main expectation of consumers for “Mini Cup” is the relatively low price of small package matching.
Xicha, Naixue’s tea, yidiandian and other head brands have high unit prices. “Mini Cup” can solve the problem of price anxiety, reduce the consumption threshold, and attract consumers to buy. However, for the middle waist brands with low unit prices, “Mini Cup” is difficult to achieve similar results.
At the same time, because some consumers who buy “Mini Cup” are out of spiritual consumption demand and pay more attention to the beauty of product packaging, it is necessary to carry out a new round of R & D competition in the future.
On the whole, when the day of the brand’s formal layout of “Mini Cup” comes, it must be a full-scale competition.
What can be referred to is that when Coca Cola first made a comprehensive layout of mini canned products, it invested a lot in product packaging, production and marketing. First, it cooperated with Yao Ming, Liu Xiang, Zhang Ziyi, ge you and other first-line stars in China, and cooperated with TV advertising to bomb consumers. Then, it cooperated with BMW Mini to launch a tailor-made “Coca Cola” × “Mini” refit car, build momentum for products through cooperation.
From innovative products to endorsement, advertising and other overall marketing, head players can afford to play.
official microblog of tuyuan Xicha
Looking back on the development history of new tea, it is not difficult to find that this industry, which is regarded as profiteering, has not only absorbed countless new players, but also experienced several shuffles and elimination competitions.
The Matthew effect continues. On the one hand, the head players continue to expand. Although Naixue was established late, it has opened nearly 200 stores in less than four years since the end of 2015.
The expansion momentum of Xicha is also very fierce. From 2017 to 2019, the number of its stores is 80, 163 and 390 respectively.
On the other side is the ongoing wave of bankruptcies. According to the 2020 white paper on new tea, as of last year, more than 130000 tea enterprises had stopped business, accounting for 43% of the total number of tea industry enterprises.
Of course, the head brand is still anxious. According to the data of Zhuoshi consulting, according to the total retail consumption in 2020, Naixue’s tea is the second largest tea shop brand in China’s high-end ready-made tea shop market, with a market share of 18.9%. However, it ranks seventh in the whole tea shop market in China, with a market share of 3.9%.
Although Xicha and Naixue tea are far ahead in the market share of high-end tea drinks, considering the small share of high-end tea drinks in current tea drinks, there is still a large market that has not been conquered.
As the tea market in the first tier cities tends to be saturated, the new tea brands in the head tend to attack the sinking market.
In March 2020, the first tea shopping mall in Shenzhen was opened in the city of WeChat, and was launched on the official account and the mall of small businesses. According to the introduction of “WeChat” official account, “Xi Xiao tea” has opened 8 stores.
But in the sinking market, it is facing the competition of many well-known brands. For example, relying on the strategy of focusing on the sinking market, miyue ice city has inadvertently grown into a giant. As early as June 2020, miyue ice city announced that the number of global stores exceeded 10000, becoming the first tea company with more than 10000 stores.
The threshold for new tea brands to enter the sinking market is not high, but this increasingly competitive and diversified market is not so easy to win.
Perhaps the exquisite packaging and competitive price of “Mini Cup” can make tea brands open a gap in the sinking market“ The emergence of “Mini Cup” will also make the industry scuffle more intense, and the speed of shuffling will also be accelerated.
(the first picture of this article is from the little red book blogger “elephants eat peanuts.”)
Author: Zhong Wei; Source: connecting insight (ID: lxinsight), reprinting is authorized. Joining the community: Cherry (wechat: 15240428449); Business cooperation: Amy (wechat: 13701559246). Recommended reading “Yuanqi” black horse | Yeast extract| Chinese tonic | Substitute meal| Collagen| “ Five questions about hyaluronic acid | Sugar crisis| 100 billion light food | Daily new products: Isee trend | Editor’s | Reader’s
“Mini Cup” fire, can save the collective loss of the milk tea industry?