"Rui?" "Hi?" "Nai?"
This set of "happy codes" circulated among young people asks what to drink today. Drinking a cup of milk tea together has become a high-frequency scene for young people's social interaction, and after more than ten years of market cultivation, new tea drinks occupy a place in the lives of young consumers.
Consumption trends are visually reflected in the data. In 2023, the volume of the new tea beverage market will reach about 330 billion yuan, achieving double-digit growth compared with the previous year.
Heytea debuted at the 4th Consumer Expo. Photo by reporter Li Hao
"Roll, it can no longer be rolled", is the common evaluation of many practitioners on the current tea market. New Hainan client, Nanhai Net, Nanguo Metropolis Daily reporter noticed that now the new tea brands from the major business districts "roll" to the Consumer Expo, "Snow King" Mixue Bingcheng, Nai Xue's tea, Hey Tea, Bawang Tea Ji, Yihetang and many other tea brands have appeared, many of which are exhibitors for the first time;
Mixue Bingcheng debuted at the 4th Consumer Expo. Photo by reporter Li Hao
Nai Xue's tea was unveiled at the 4th Consumer Expo. Photo by reporter Li Hao
Yihetang debuted at the 4th Consumer Expo. Photo by reporter Li Hao
New Hainan client, Nanhai Net reporter Wang Ziyao Zhou Jingbo
Gather together to debut the new tea drink brand "each enchanting"
From various retail scenes, the new tea brand is a bit of a fight.
The reporter noticed that at the 4th Consumer Expo, the number of domestic popular new tea brands participating in the exhibition can be said to have hit a new high - "Snow King" Mixue Bingcheng, Nai Xue's tea, Hey Tea, Bawang Tea Ji, Yihetang...... Many of them are first-time visitors. Some companies that are not new tea shops are also testing the tea market in the "cross-border" and bringing new products to the Consumer Expo for the first time.
Mixue Bingcheng debuted at the 4th Consumer Expo. Photo by reporter Li Hao
Bawang Tea Ji appeared at the 4th Consumer Expo. Photo by reporter Li Hao
Shang Nantang debuted at the 4th Consumer Expo. Photo by reporter Li Hao
Coincidentally, they all "rushed" to the Consumer Expo, and each new tea beverage brand not only has common exposure and display needs, but also has its own market goals.
As a new tea brand participating in the Consumer Expo for three consecutive years, Heytea chose to focus on technology this year, bringing its latest self-developed intelligent split tea machine, which can be made in as little as 3 seconds as soon as a cup of tea; Bawang Tea Ji focuses on image IP display and peripheral product promotion to increase the brand's exposure and recognition; Nai Xue's tea brings dim sum products other than tea drinks; Yihetang brings part of its product line to the scene, and at the same time focuses on promoting and joining, and many merchants have made preliminary contact with it......
"As a national consumer goods display platform with high exposure and display opportunities, the Consumer Fair has attracted the attention of FMCG companies such as new tea drinks, especially in today's increasingly fierce competition in the homogenization of new tea drinks. Compared with simple displays, more new tea beverage companies are actually preparing for future development. Zhu Danpeng, an analyst of China's food industry, analyzed.
The fierce competition has also promoted the continuous expansion of the new tea beverage market. According to Ernst & Young's research data, in 2022, the annual volume of the domestic new tea beverage market will be about 293.2 billion yuan, and by 2023, the market volume has increased to 330 billion yuan, achieving double-digit growth. In EY's view, in the next five years, the new tea beverage track is expected to develop at an annual growth rate of 9%-10%, and the scale will be further improved.
"While the overall volume is expanding, from the trend point of view, we have noticed that the 'Matthew effect' of the new tea beverage market has gradually emerged, especially the high-end new tea beverage brands have seen a certain degree of concentration. Starting from last year's market data, the top two new tea beverage companies in terms of market share have basically accounted for 45% of the entire market share, and the brand share in the low-end market is still relatively scattered, and the competition will become more and more intense. Hu Xin, EY Greater China Business Innovation & Management Transformation Advisory Services Partner, said.
"Volume" out of the realm, "out to sea" or "sinking"?
What Hu Xin said may also be the problem that many new tea brands focusing on the low-end market are thinking about at this stage.
The Matthew effect refers to the fact that the strong get stronger and the weak get weaker - in the case of Heytea, Heytea has taken "involution" to another level - starting to "roll" productivity tools.
In 2021, Heytea set up a professional intelligent equipment R&D team, and successively developed a full set of tea intelligent equipment in three categories: intelligent electronic scales, intelligent tea machines, and automatic peeling machines, which can cover the whole process of application scenarios such as raw material preparation, raw material management, and tea preparation in stores. It only takes 3 seconds to make a cup of tea at the earliest, and it can also realize the functions of raw material temperature control storage, expiration date monitoring and reminder, trackable automatic cleaning, etc., which can improve efficiency, maintain stable product quality, and reduce training costs.
Heytea debuted at the 4th Consumer Expo. Photo by reporter Li Hao
Based on automation and intelligent equipment, Heytea has rapidly expanded its territory.
In 2023 alone, Heytea will add more than 2,300 new stores, which is about 3 times the number of Heytea stores opened in the previous 10 years. Driven by the "engine" of new quality productivity, Heytea has tested the waters to "go to sea", and has successively entered overseas markets such as the United Kingdom, Australia, Canada, the United States, and South Korea, focusing on the core business districts of core cities in developed countries to explore the "blue ocean" of foreign markets.
In contrast, when the domestic first- and second-tier cities are almost saturated, and high-end new tea drinks firmly control the core business districts of the city, some new tea brands in the low-end market are "red-eyed" in the "sinking market".
The person in charge of Hainan District, a new tea brand participating in this year's Consumer Expo, told reporters that taking the Hainan market as an example, the brand, which has been taking the route of "sinking market", has opened stores in all cities and counties except Sansha City, but according to the company's market research, the current consumer awareness of the product and brand on the island still needs to be further cultivated.
"We hope to further attract more franchisees through the CICGF and take the lead in expanding the brand's share in the sinking market. The person in charge said bluntly.
At the same time, the underlying logic that needs to be considered is that "Generation Z" consumers have gradually become the mainstream consumers of new tea drinks.
In the "2024 New Tea Growth Insights White Paper" released by EY at this year's Consumer Expo, it was written that in 2022, the size of China's new tea beverage consumer group will be close to 380 million, of which "post-90s" consumers account for more than 70%; The proportion of Gen Z consumer users has increased for three consecutive years, and as Gen Z gradually enters the workplace, this group of people is gradually growing into the "new financiers" of the tea market.
It is worth noting in the report that about 75% of the new tea consumers are women, and with the improvement of living standards, female consumers now put emotional value in an unprecedented position when making consumption decisions. Based on the consumption concept of young women and even "Generation Z" groups, which are more independent and more personalized, new tea beverage brands still need to innovate and expand their operation ideas.
——This may also be an important reason for the continuous iteration of the "0 sugar" products of various new tea beverage brands and the emergence of various co-branded products. Since last year, Bawang Tea Ji has joined hands with the Palace Museum to tour exhibitions in many places across the country, and there are also many cases of new tea co-branded mobile games dominated by women, such as Heytea Co-branded Light and Night Love, Coco Duke Co-branded Love and Producer, and many new tea brands have also begun to explore their own image packaging, in order to win the favor of the "Generation Z" young consumer group.
"For today's new tea brands, they should know the new generation, understand the new generation, and embrace the new generation. Zhu Danpeng said frankly.
"Leaping" into the New Territories They are looking for new opportunities on new tracks
Although the competition is becoming increasingly fierce, based on the huge consumer group of Generation Z and the growing market volume, the new tea drink track still makes many companies rush to it. At this year's Consumer Expo, many companies "cross-border" entered the new tea beverage track and launched their new products at the Expo.
"Twist it, shake it, and enjoy it with a cup of freshly brewed tea. At this year's Consumer Expo, Yili Group, a dairy giant exhibiting for the first time, chose to go all out to promote its new "freshly brewed tea" product, Yike Huoquan freshly brewed tea, and the "cross-border" new tea beverage track of traditional dairy enterprises has also attracted the attention of many domestic industry professionals.
Eke Fountain Freshly Brewed Tea was unveiled at the 4th Consumer Expo. Photo by reporter Li Hao
Eke Fountain Freshly Brewed Tea was unveiled at the 4th Consumer Expo. Photo by reporter Li Hao
"The Yike Huoquan Freshly Brewed Tea exhibited at the Consumer Expo is a strategic product of Yili Group, which shoulders the company's expectations for the second growth curve, so the company has given great attention and support to the new business segment. The relevant person in charge of Yili Group said that the listing of Yike Huoquan Freshly Brewed Tea is only a starting point, and Yili Group will provide consumers with more healthy and high-quality products in the future.
In addition to domestic giants, there are also local enterprises in Hainan that have begun to explore - at this year's Consumer Expo, Chunguang once again brought its new tea drink brand "Anytime Coconut" to the show, and also used the platform of the Consumer Expo to unveil the new product "Lemon Coconut Water", which has been widely praised by tasters.
Chunguang coconut appeared at the 4th Consumer Expo. Photo by reporter Li Hao
"As a local enterprise in Hainan, our new tea products are made from our advantageous coconut water and coconut water, and are made from Hainan's local tropical fresh fruits. On the one hand, these tropical fresh fruits are in line with the healthy and original consumption concept of today's Gen Z consumers, and on the other hand, we also hope to export 'Hainan' in the field of new tea drinks as part of Hainan's characteristic cultural tourism." Huang Liang, director of Chunguang Coconut Products, said.
Shang Nantang, which is also a local enterprise in Hainan, also developed ready-made drinks such as partridge tea coffee and partridge fruit tea to test the water market in 2021, and also specially launched a portable canned and packaged cup form to facilitate consumers to "drink while walking". As an enterprise focusing on the whole industry chain of partridge tea, Xi Zhiqiang, president of Shangnantang Hainan Ecological Agriculture Technology Co., Ltd., is very optimistic about the prospects of the new tea beverage track. "Personally, I am very optimistic about the new tea drink, which is a vivid practice of traditional Chinese tea taking the initiative to go to the market and embrace consumers. Shang Nantang is now innovating and developing 100 ways to drink partridge tea, which is a full reference to the new tea drink model. He said that at present, Shangnantang is also exploring the possibility of launching bottled tea with partridge tea, so that partridge tea, a special tea from Hainan, can better enter the mass market.
"Nowadays, it is not uncommon for enterprises to 'cross over' into the new tea beverage track and seek their own second growth curve. However, for these enterprises, they must have a scientific and accurate positioning of themselves and even their products. Zhu Danpeng said that for Hainan's local new tea brands such as Shangnantang and Chunguang "Anytime Coconut", relying on their own industrial chain and supply chain advantages in their respective fields, seizing the tourism flow dividend brought by Hainan's construction of an international tourism consumption center, and carrying out research and development and innovation of their own characteristic products, it is a steady exploration practice for local enterprises.
Hu Xin also believes that it is very important for regional brands that have just "crossed" into the new tea drink track to choose their differentiated core customer groups and select key scenarios on the path of customer interaction. "I think as a new tea brand, we should take a long-term view, not 'stand today and think about tomorrow', but 'stand the day after tomorrow and think about tomorrow'. Looking at the market from the perspective of development, having a good structured and measurable operation system can help the new tea beverage brand to go steadily and far. ”