On February 24, Xicha announced the completion of the comprehensive product price adjustment carried out since January this year, and will not launch new beverage products of more than 29 yuan this year, and promised that existing products will never increase in price this year. Previously, Heytea lowered the price of the product under the premise that the materials and quality of the product did not change. After the price adjustment, in addition to a few city-limited products, surrounding areas, as well as a small number of products in LAB stores and handmade stores, the product prices of heytea mainstream stores have been comprehensively lower than 30 yuan, and the price of products priced at 15-25 yuan has accounted for more than 60% of all products of heytea. This round of price reduction of Heytea, thanks to its brand potential, scale advantages, and continuous accumulation in the supply chain, will bring higher quality products to more users.
Take the initiative to adjust the price, and the tea drink has bid farewell to 30 yuan in an all-round way
Heytea today responded to rumors of previous price cuts. As early as January 2022, Heytea began a round of price reductions. Comparing the menu, it was found that the price adjustment covered the vast majority of all products in the whole category such as cheese tea, fruit tea, milk tea, pure tea, coffee and so on, with a price adjustment range of 1-10 yuan and a single product price adjustment range of up to 10 yuan. At present, except for a small number of special products, the price of Heytea drinks has been comprehensively lower than 30 yuan. Among them, the price of pure green tea and American coffee after the price adjustment is only 9 yuan.
Through this price adjustment, Heytea brings high-quality products to a wider range of users with unchanged materials and quality. All along, Heytea has insisted on creating high-quality tea for consumers. Before the establishment of Heytea in 2012, vegetable fat powder, tea powder, fruit powder, etc. were the mainstream raw materials in the beverage industry at that time, and since Heytea pioneered cheese tea with fresh milk, cheese, real tea, etc., real new tea drinks were born. In the past ten years, Heytea has always insisted on using high-quality raw materials such as real fruit, real milk and real tea, and has launched many high-quality tea products.
High quality does not mean high price. This price reduction is also a normal adjustment of Heytea in the mainstream price band of its products. Heytea said that heytea has never been a high-priced tea drink. In the time of the growth and development of Heytea, the price band of mainstream products has been maintained between more than ten yuan and twenty yuan for a long time.
In addition to the price reduction, Heytea has also made an overall adjustment to the product matrix, and consumers see a new "Heytea menu". The latest tea menu classification is presented as "seasonal fresh fruit", "refreshing and not greasy", "to be meaty", "to be rich", "to be simple", "to be affordable", "hot drink recommendation" and other different columns, to better meet the diversified and personalized needs of consumers, but also to make ordering more convenient. In addition, Heytea has also launched a light version of the product and more cup types for selection in response to the more diversified consumer needs of consumers.
Adjust the price against the trend, and the bottom line of the tea is sufficient
Heytea's price adjustment against the trend benefits from its brand potential, scale advantage, and deep cultivation and accumulation in the supply chain. These comprehensive strengths support Heytea's ability to adjust the price of products without changing the materials and quality of the products.
In terms of brand potential, Heytea has been widely loved and supported by consumers with excellent products, inspired brand building and design pursuits, and stunning store space creation. In the development of nearly ten years, Heytea has become a representative brand of new tea drinks and new consumption. According to the data of the "2020 China New Tea Industry Development White Paper" released by Frost & Sullivan, a global authoritative growth consulting organization, in the new tea industry, the national popularity and love of Heytea rank first, and its brand awareness accounts for more than 41.5% of the overall market in the country, and in terms of brand popularity, Heytea ranks first with a proportion of 32%.
In terms of scale, Heytea already has a leading edge in terms of store size, user volume, and market share. At present, Xicha has nearly 900 stores in about 70 cities at home and abroad, covering first- and second-tier cities.
In terms of supply chain strength, Heytea has established an efficient supply chain system and continued to promote industry supply chain innovation. In terms of raw materials, Heytea has continuously taken the lead in introducing and continuously using high-quality raw material varieties, innovated raw material processes, and launched raw materials such as raw coconut.
With the development of the scale of Heytea, Heytea not only has the strength of large-scale procurement, but also goes deep into the upstream, through self-construction, co-construction of bases and other ways, deeply involved in the planting and production of upstream tea gardens and orchards, which not only ensures the continuous and stable supply of high-quality raw materials, but also optimizes the procurement cost. Heytea has also greatly improved the overall operational efficiency of the supply chain through digital investment in the supply chain field and the establishment of an efficient cold chain logistics network.
In addition, Heytea has also continuously promoted its supply chain innovation and industry standards through customized needs. For example, through independent research and development and design, Heytea has launched PLA degradable straws, three-piece rotating cup lids, takeaway cup lids, etc., and applied for a number of technical patents. While driving the upgrading of packaging consumables in the whole industry, Heytea also has a greater control over the cost of packaging consumables.
As a pioneer and promoter of the new tea industry, Heytea has the ability to "say goodbye to 30 yuan" without changing the materials and quality of the product, and promises not to increase prices this year. In the future, Heytea will continue to rely on its solid comprehensive strength to continue to bring more high-quality products full of inspiration and joy to users, and continue to win the favor and recognition of more consumers.
Upstream journalist Gu Li