In the past few years, under the carnival of capital, the new tea brands represented by Hey Tea and Nai Xue's tea can be described as infinitely beautiful. With their trendy brand image and innovative product taste, they quickly became popular among young people. According to data, in 2020, the new tea beverage industry will complete financing of up to 1.7 billion yuan, a year-on-year increase of nearly 700%!
When the money is melted, it expands wildly, and it becomes commonplace to burn money to attract new people. At one time, Nai Xue sold for more than 40 yuan per cup of milk tea, and was nicknamed "Moutai in milk tea". But the good times did not last long, and with the entry of competing products, the price war of various companies was about to break out. After Nai Xue was listed on the Hong Kong Stock Exchange, the stock price fell all the way, and now the market value is only more than 4 billion Hong Kong dollars, evaporating more than 26 billion yuan from the peak!
Although Heytea was once considered "China's No.1 tea drink", the pace of expansion had to slow down after refuting rumors of a 30% layoff. Due to the blockage of expanding by burning money, the major tea giants began to move to lower-tier cities and took the franchise store model to obtain scale at low cost.
Seeing this, you may think that the new tea brands have hit the south wall in the capital winter, but the truth is not so simple. China's overall tea market continues to grow, but the growth rate has slipped from double digits to single digits. The hypertrophy of the market pie will inevitably stimulate the crazy competition of brands.
For example, at the end of last year, Tea Baidao had opened more than 7,800 stores, saying that it would hit the scale of 10,000 stores this year! Although Nai Xue's tea turned losses into profits last year, each single revenue and single volume were declining, and this year it claimed to open 2,000-3,000 franchise stores to continue to expand the scale.
It can be seen that in order to seize a larger market share, each brand is desperately increasing the layout of stores, but at the same time, it has further intensified the white-hot competition in this track. At that time, those brands with weak profitability will face the risk of being eliminated by the market.
This is undoubtedly good news for consumers. In the future, there may be more preferential activities and new products, as a "milk tea control" you must pay attention to it! However, if the brand falls into disorderly competition and affects the quality of products, then you have to be careful.
In short, how will the future of the tea drink track be interpreted? Who will be the king of scale? What will be the birth of quality-oriented brands? We will wait and see! However, for us consumers, health is the most important thing, please be cautious of overeating. ☺️