Per Editor: Li Zedong
On February 24, the official Weibo account of Heytea announced that it would no longer launch products of 29 yuan and above during the year.
A fact, a decision.
Fact: "At present, there are no drinks that begin with 3 words on the standard tea menu of Heytea. ”
Decision: "Heytea will no longer launch products of 29 yuan and above this year." ”
We invite you to witness and never punch you in the face.
Image source: Heytea official website
There are more than 800 Xicha stores and 5 rounds of financing have been raised
According to the official website of Xicha, in 2012, Heytea originated from an alley called Jiangbianli, formerly known as Royal Tea ROYALTEA. In order to distinguish it from the endless cottage brands, it has been fully upgraded to the registered brand Heytea, and Heytea is the original creator of cheese freshly brewed tea.
Qixinbao information shows that as of now, there are more than 800 Xicha stores. Xicha is a white-collar class, young forces as the mainstream consumer group, leisure, drinks as the main products of the franchise chain agency, its affiliated company Shenzhen Meixi West Restaurant Management Co., Ltd. was established in 2016, the legal representative is Nie Yunchen, the registered capital of 10 million yuan, the business scope includes: hot and cold drinks, snacks, desserts, cake production and sales; books, newspapers, periodicals retail, etc., by The Heytea (Shenzhen) Enterprise Management Co., Ltd. 100% controlled.
In addition, Heytea has raised 5 rounds of financing, including Meituan Dragon Ball, Tencent Investment, Sequoia Fund, etc., the company controls 34 enterprises, and the provinces and regions involve Guangdong, Shandong, Zhejiang, Hubei, Shanghai, etc.
In recent years, new-style tea has become an outlet, and many entrepreneurs have entered the market, among which Naixue's tea is the first to be listed, and Michelle Ice City is also preparing to go public. Previously, Heytea also completed multiple rounds of financing, and in July 2021, Heytea completed a $500 million Series D financing, with a valuation of up to 60 billion yuan after the financing. Subsequently, it was also rumored that an IPO was imminent, but the authorities denied it.
In 2021, the sales growth rate is not optimistic, and the price of Heytea is against the trend
For new-style tea drinks, especially the new-style tea drinks that adopt the direct operation model, the fixed costs such as store rent and labor expenses are not small, coupled with the continuous rise in the prices of various materials at the upstream end, which has brought a certain impact on the profitability of the brand side. At the same time, affected by the epidemic, offline consumer demand has weakened, coupled with the increase in new tea players, the supply and demand side has gradually entered a saturated state, and many stores are facing a decline in sales.
In 2021, the sales growth rate of Heytea is not optimistic. According to jiuqian consulting middle office data, the number of stores of Heytea did not exceed 800 until the third quarter, reaching 835 stores, and the store growth was mainly concentrated in first- and second-tier cities. In addition to the slowdown in store growth, the average profitability of Heytea's stores has also begun to decline, and from July 2021, Heytea's nationwide ping effect and average store revenue have begun to decline. Taking the data of October 2021 as an example, the average revenue and sales efficiency of Heytea stores fell by 19% and 18% compared with July, and compared with the same period of the previous year, it fell by 35% and 32%.
In this context, in the rising price of new tea drinks, Xicha has lowered the prices of many products in the opposite way.
On January 10, there were media reports at the time that Heytea had lowered the price of some products, with a price reduction of between 1-6 yuan, of which the price of pure tea was reduced by 3-5 yuan, including 5 fruit teas including Shiba raspberries, 2-3 yuan, in addition, the price of cheese snacks was reduced by 1 yuan.
According to the interface news previously reported, Heytea told reporters that the price reduction is to allow users to drink Heytea more conveniently and at low cost, "Our mainstream product price band has been maintained between 19-29 yuan for a long time, Heytea is not the so-called high-priced tea, this price adjustment is also the normal adjustment action of Heytea in its own mainstream price band, Heytea will continue to polish and launch high-quality products, so that more consumers can taste higher quality tea." ”
Fragrant fluttering, tea color, Starbucks price increased
It is worth mentioning that not long ago, other brands have reported price increases. On January 4th, "the first share of Chinese milk tea" Xiang Piaopiao (603711. SH) issued an announcement about the price increase of some products, and most of the products of the new tea brand Tea Yan Yue Color raised by 1 yuan on January 7. On February 16, in the official App of Starbucks, the price of many products, including American coffee and latte coffee, increased by 1-2 yuan compared with the previous one.
Cha Yan Yue color WeChat public account posted that this is its first price increase in 5 and a half years, the last time the price adjustment was in 2016. For the reasons for the price increase, the official micro of the tea face Yue color said that "the raw materials and other costs on the market are rising year by year, and the dividends accumulated before cannot withstand a series of superimposed costs" "For our brand of small profits and high sales, this price increase is really the last step that cannot be resisted."
Image source: Photo by reporter Chen Qing
Daily Economic News Comprehensive Heytea official website, Heytea public number, interface news, Beijing News, Qixinbao APP, public information
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