Heytea has finally responded positively to the price reduction since the beginning of this year. On February 24, Heytea announced the completion of the comprehensive product price adjustment 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 prices this year. After the price adjustment, in addition to the limited products in individual cities, the surrounding areas, as well as a small number of products in LAB stores and handmade stores, the product prices of the mainstream stores of Heytea have been comprehensively lower than 30 yuan, and the products priced at 15-25 yuan have accounted for more than 60% of all the products of Heytea.
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It is understood that 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.
For this price adjustment, Heytea stressed that Heytea has never been a high-priced tea. 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. The price adjustment against the trend during this period benefited from its brand potential, scale advantages, and deep cultivation and accumulation in the supply chain.
It is reported that at present, Xicha has nearly 900 stores in about 70 cities at home and abroad, covering first-tier and second-tier cities. With the development of its scale, Heytea began to go 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, and also established a cold chain logistics network.
Since the beginning of this year, due to the rise in the price of upstream raw materials, milk tea, coffee and other industries have ushered in a wave of terminal price increases, and the price reduction of Xicha against the trend is more of a "dimensionality reduction blow" in the eyes of Zhu Danpeng, an analyst in the Chinese food industry. "This is a way of playing that the entire new Chinese milk tea has entered the mature stage, which is conducive to the orderly development of the entire industry, and also meets the cost-effective demand of the new generation of consumers for high-quality products, and matches the current development strategy of Heytea." Zhu Danpeng believes that such a strategic adjustment does not rule out that Xicha is to dock the listing after the listing, and to obtain more customer groups by reducing prices, so as to cover a larger market and obtain a higher market share.
At the end of March last year, its founder and CEO Nie Yunchen publicly denied the listing rumors in the circle of friends, but at the time he said that "we do not have any listing plans this year." Some time ago, Xicha was rumored to have laid off employees on a large scale, which once again triggered everyone's speculation that it needed to streamline personnel before its listing, but Xicha directly denied the rumor of "big layoffs" and said that it was adjusted and optimized for normal personnel years ago.
Written by: Nandu reporter Xu Bingqian