Behind the price reduction of Hi Tea: new products are as low as 9 yuan, and the main cost of new tea drinks is these

After the price of Xiangpiaopiao and Tea Beauty rose successively, Xi Tea went against the trend and reduced the price.

Recently, some consumers have found that many products of Xicha have actually reduced their prices, and the price reduction is roughly 1-7 yuan. Nandu reporter opened the "Xicha GO" mini program and found that the main menu bar appeared including "to be affordable" and "to be simple" including four "on the new" classification, the former of the classification even appeared in the 9 yuan unit price of pure green Tea, the most expensive product is only 21 yuan.

Hi Tea: "Not the so-called high-priced tea drink"

For the price reduction phenomenon, Heytea admitted to the Nandu reporter that Heytea did reduce the price of some products this time. At present, thanks to the brand potential and scale advantage of Heytea, as well as the continuous accumulation in the supply chain and the deep cultivation in the upstream, Heytea has the ability to adjust the selling price of some products without changing the product formula, materials and quality.

However, they also stressed: "It should be clear that our mainstream product price band has been maintained between 19-29 yuan for a long time, And Heytea is not a so-called high-priced tea drink, and this price adjustment is also the normal adjustment action of Heytea in its own mainstream price band." ”

It is reported that the price reduction of Xi tea has attracted so much attention, largely because the tea color of the same fresh tea drinking track and the bar handle of the brewing milk tea track "Xiangpiaopiao" announced price increases in early January, compared with the meaning of "counter-trend" of Heytea.

In the long article announcing the price increase released on its public account, Cha Yan Yueshi clearly mentioned that the price increase in the previous five years was not due to the brand dividend, and the second was to rely on the procurement dividend brought by the expansion of the scale, but in recent years, the raw materials and other costs on the market have risen year by year, and the dividends accumulated before cannot withstand a series of superimposed costs.

Similarly, as a listed company, Xiangpiaopiao clearly pointed out in its announcement on the price adjustment of some products that in view of the continuous rise in the costs of major raw materials, labor, transportation, energy, etc., in order to better provide high-quality products and services to distributors and consumers, the price increase of major products is 2%-8%. Xiangpiaopiao also said that this price adjustment may have a certain impact on the market share of the company's products.

Price cuts or due to the fierce competition in the tea market

Wang Qinglin, a senior analyst at Ai Media, said that the main reason for the price reduction of Heytea is that the competition for tea drinks is still particularly fierce at this stage, although after several years of development, Heytea and Naixue are regarded as the head of the industry, but from the perspective of the number of stores, operating profits, product uniqueness and competitiveness, the two companies have not formed an absolute advantage. And at this stage, the tea consumption market has been basically saturated, and it is difficult to achieve a leap in the short term. Recently, a price reduction strategy has been introduced, which can not only conform to the current large values and the consumption mode of young users pursuing cost performance, but also guide and correct the corporate image to a certain extent.

In addition, Wang Qinglin believes that the price reduction has a limited impact on the profit of a single product of Heytea: "From the cost point of view, the main expenditure of new tea drinks is three major parts of labor, storefront and raw materials, of which the proportion of raw materials is not the largest. And the products with better sales of Heytea are more products such as Zhizhi berry, succulent grapes and milk tea products, and the increase in raw materials is limited, and the original pricing strategy of Heytea is higher. ”

Written by: Nandu reporter Xu Bingqian