This year's tea track can be said to be your singing and I debut, and various tea companies are gearing up to sprint to the market, but after the first day of the tea Baidao listing, another well-known tea company was rumored to go to the United States for IPO, this is the Bawang Tea Ji, but everyone can't help but worry about the Bawang Tea Ji sprint to the market, can the curse of the tea drink be broken when it is listed?
1. Overlord Chaji is going to IPO in the United States?
According to a report by the International Financial News, there is news in the market that the chain tea brand "Bawang Chaji" will go public in the United States as soon as the middle of the year, raising funds between 200 million to 300 million US dollars (equivalent to about 1.57 billion to 2.35 billion Hong Kong dollars), and Citibank and Morgan Stanley will be responsible for preparing for the listing. The reporter of "International Financial News" asked Bawang Chaji for confirmation based on this, and the relevant personnel said that there was no response for the time being.
According to the company's information, Bawang Chaji was established in 2017, and it has experienced two rounds of financing before, and the B round of financing took place in October 2021, with a financing amount of more than 300 million yuan. IN AUGUST 2023, BEIJING CHAJI CATERING MANAGEMENT CO., LTD., AN AFFILIATE OF BAWANG CHAJI, UNDERWENT INDUSTRIAL AND COMMERCIAL CHANGES, AND A NEW SHAREHOLDER, CHAGEE INVESTMENT PTE. LTD. is a Singapore company, with a registered capital of approximately $1.61 million to approximately $148 million.
The reporter of "International Financial News" learned from Bawang Chaji that as of now, the number of its global stores has exceeded 4,000, including more than 100 overseas stores.
On November 17, 2017, Bawang Chaji opened its first store in Kunming, Yunnan. The rapid expansion of the brand starts in 2023. At the end of 2022, the total number of domestic stores of Bawang Chaji was less than 1,000. Last year, it added more than 2,000 new stores.
Some Bawang tea franchisees told reporters that since the middle of last year, Bawang tea has tightened the threshold for joining, requiring intending franchisees to have a background in the tea industry, and they need to be lottery to have the qualifications to open a store after the resume is passed.
2. Can the curse of tea breaking when it is on the market be broken?
Bawang Chaji, a new tea brand originating from Kunming, Yunnan Province, has emerged in the tea market in recent years with an astonishing expansion rate and unique brand positioning. Recently, the market rumors that Bawang Chaji plans to apply for listing in the United States, this news has attracted widespread attention in the industry, not only because of the strong development momentum of Bawang Chaji itself, but also because the tea industry in recent years The curse of listing is unpalpitating, so what should we think of Bawang Chaji's listing road?
First of all, as the competition in the tea market has entered a white-hot stage, the wrestling between brands is no longer limited to product innovation and marketing, and the ability of capital operation has become a new battlefield. Bawang Chaji chose to go to the United States for IPO at this time based on many considerations. Although the tea market is growing rapidly, it is also facing problems such as rising costs and serious homogenization, and in order to stand out in such an environment, it is necessary to have sufficient financial support for brand upgrading, technological innovation and market expansion. Listing can provide direct financing channels for enterprises, and the huge amount of funds raised will inject more momentum into the follow-up development of Bawang Chaji.
Secondly, since its establishment, Bawang Chaji has achieved rapid expansion in just a few years, showing strong brand vitality and development potential. Its success is inseparable from the precise positioning and high-quality control of the product, with "original tea + fresh milk" as the main selling point, combined with fresh fruits and other high-quality raw materials, to create a series of distinctive drinks. This insistence on quality has made Bawang Chaji establish a good brand image in the hearts of consumers, and form a unique brand culture, which is also reflected in its product naming, such as "Boya Juexian" and other names rich in national style elements, which not only give the product cultural connotation, but also make the brand stand out among many competitors.
Third, up to now, the number of Bawang Chaji stores has exceeded 4,000, showing its rapid pace of market expansion. With the help of the IPO, Bawang Chaji can further accelerate this process, not only consolidating and expanding its market share domestically, but also potentially using the raised funds to explore the international market and enhance global brand awareness. Increasing scale not only leads to a larger sales network and brand exposure, but also reduces costs and increases profitability through economies of scale. In addition, the enhancement of brand influence will also help attract more franchisees and partners, forming a virtuous circle.
Fourth, however, the listing is not a smooth road, especially for the tea industry, there have been cases of Nai Xue's tea, tea Baidao and other brands listed in the past, and Bawang Tea Ji is also facing a severe capital market test. Telling a convincing story that demonstrates long-term growth potential and profitability is the key to its success. On the one hand, Bawang Chaji needs to demonstrate to the market its clear growth strategy, sustainable profit model, and flexibility to respond to market changes. On the other hand, it is also necessary to pay attention to controlling the speed of expansion to avoid the financial pressure and brand dilution caused by blind expansion. At the same time, strengthening supply chain management, improving operational efficiency, and maintaining product quality and service standards are also important links to win the trust of the capital market.