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Hollyland sells milk tea, benchmarking Bawang tea Ji?

author:Meal book

On May 13, the baking brand Hollyland announced the launch of the tea sub-brand "Good Tea", and launched three products, with a unified price of 13 yuan and a cup of 9.9 yuan during the event.

At present, "Good Tea" has been listed in all Hollyland stores in 22 cities including Wuhan, Changsha, Fuzhou, Nanjing and Hangzhou, and in some stores in Shanghai, Chengdu, Mianyang and Deyang.

1. "Benchmarking" Overlord Tea Lady

Hollyland positions "Good Tea" as a "new Chinese tea drink", made with 0 flavor original leaf real tea, 0 creamer fresh milk, and a whole cup of 0 trans fatty acids.

In this way, the target of "good tea" seems to be the overlord tea lady. In July last year, Bawang Tea Ji announced that it had achieved 0 flavors at the bottom of the tea, 0 non-dairy creamer from milk, and 0 trans fatty acids (referred to as "three 0s") in the whole cup, and "good tea" was also "three 0".

In addition, according to the report of Jiemian News, "good tea" is the same as Bawang Tea Ji without petty ingredients; When asked about the taste and sweetness of the product, a clerk jokingly said that you can refer to Bawang Chahime.

Hollyland sells milk tea, benchmarking Bawang tea Ji?

△ The picture is from Xiaohongshu user @ Zhao Roast Chicken Leg Bao

If Hollyland really takes Bawang Tea Ji as a template for its own tea subcard, then the reason is not difficult to understand, and the analysts of Meal Treasure Book believe that there are three main points:

First, compared with fruit tea, raw leaf fresh milk tea is easier to standardize because it is mainly tea blending, and it is more suitable for novices to enter the game. Bawang Tea Ji is a leader in the field of raw leaf fresh milk tea, and there are many things worth learning for novices. Cudi's tea cat, at the beginning of its birth, was aimed at brands such as Bawang Tea Lady.

Second, Bawang Tea Ji is the "popular fried chicken" in the current tea industry, and it is normal for novices to use it as a template. According to the data of NCBD (Dining Treasure Book), in 2023, Bawang Chaji will rank sixth in the store growth rate ranking of various tea brands, with more than 2,300 stores, and now the total number has exceeded 4,000, covering 31 provinces in China.

Third, driven by head brands such as Hey Tea, Nai Xue, and Bawang Chaji, health has become the mainstream pursuit of the tea industry, and some outstanding results have been achieved. For Hollyland, there seems to be no reason why its tea sub-brand shouldn't focus on health.

2. The wind of 9 pieces of 9 has blown into the tea industry?

The original price of the three products on the market of "Good Tea" is 13 yuan a cup, and the current event price is 9.9 yuan.

9 pieces of 9 is now a very sensitive word (referred to as "sensitive words"), in the coffee industry has made many stores become "cannon fodder", in the tea industry there are also some brands to follow. For example, Hey Tea, in the first three days of the opening of some new stores, consumers can "drink Hey Tea for 9 yuan"; Nai Xue announced the launch of the "9.9 yuan per week, drink Nai Xue's fresh milk tea" activity in August last year.

The most radical, of course, is Cudi, the initiator of the coffee price war. At the beginning of last month, Cudi's tea brand "Tea Cat" opened its first store in Guangzhou, with 9.9 yuan for the whole audience during the event, and buy one get one free. The intensity was so great that it attracted a lot of people to line up.

Hollyland sells milk tea, benchmarking Bawang tea Ji?

△ Picture self-dining book

On April 19, Cudi announced the launch of a two-month "Tea Season" themed marketing campaign. The whole line of products of the "Tea Season" will simultaneously participate in the unlimited promotion of 9.9 yuan for the whole site, and Cudi will create a full-time beverage consumption format through coffee and tea products.

Cudi seems to be fighting a price war in the tea industry, wanting to "roll" its rivals to death on price.

However, tea is not coffee after all, and its wishes will sooner or later be frustrated, if at all.

The biggest difference between tea and coffee is that the market pattern of the former has been relatively stable, no matter what region, no matter what price band, there is no "blue ocean", there is no "virgin land", tea cat can not set off a price war, can not do like Cudi in the coffee industry "stir up the storm". And the price of 9.9 yuan is not much amazing, at least it is more expensive than Mixue Bingcheng, so has Mixue Bingcheng "rolled" the opponent to death?

What's more, the price war seems to be unsustainable in the coffee industry, one of the two protagonists, Luckin in the first quarter of this year net loss of 83.2 million yuan, compared with the same period last year's net profit of 560 million yuan, it is simply a cloud of mud;

Therefore, in the field of tea, 9 pieces of 9 as an active drainage strategy is okay, but it may also be limited to that. Nowadays, the price war cannot be fought in the tea industry.

3. "Good tea" came a little late

Hollyland has actually sold milk tea before. In 2018, some netizens bought "Rosewood Milk Tea" in Hollyland, 18 yuan a cup; In February last year, it launched three light milk teas, "Phoenix Milk", "Youxiang Jasmine" and "Rose Oil Cut", 19 yuan a cup. In addition, it has also co-branded with Lele Tea to launch drinks such as "Dirty Cake Milk Tea". None of these products made a splash, though.

Now, Hollyland has regrouped and sold milk tea again, and has launched a separate brand, showing its determination to go big. So, can it be done?

One of the biggest advantages of Hollyland over ordinary novices is that it has a lot of stores. According to data from Narrow Door Restaurant, as of May 5 this year, Hollyland had a total of 955 stores, covering 49 cities in 19 provinces. "Good Tea" can be launched in more than 20 cities simultaneously once it is launched, which is precisely due to this advantage.

And "baking + milk tea" is a proven and mature combination. Typical example is Naixue, whose slogan is "a good cup of tea, a soft European bag, meet two kinds of beauty in Naixue", and the 2023 annual report shows that its bakery product revenue accounts for 13.7% of total revenue.

Hollyland sells milk tea, benchmarking Bawang tea Ji?

△ The picture is from Nai Xue's tea 2023 annual financial report

It can be said that Haoli comes to make "good tea", and the starting point is very high.

But the timing was a little late.

After more than 10 years of development, today's tea can be said to be everywhere "volume", volume products, volume supply chain, volume marketing, volume co-branding, all the way from domestic to foreign. It is said that shop rents in Hong Kong are becoming more and more expensive, in large part because many domestic brands have taken Hong Kong as their first stop to go overseas and "rolled" up locally.

NCBD's "2023-2024 Annual Development Report on China's Tea Industry" also pointed out that in 2023, the number of tea beverage enterprises in mainland China will be 52,000, and 32,000 will be revoked.

Therefore, now entering the tea game and making a brand from scratch has almost no chance of winning.

For Hollyland, "good tea" as a supplement to the existing business, there is no problem, but it cannot become the "second growth curve" of the enterprise.

4. Conclusion

Founded in 1992, Hollyland is an old and well-known bakery brand, and "semi-cooked cheese" is its king fried product. Moojing market intelligence data shows that from October 2021 to September 2022, the sales of Hollyland's Tmall flagship store reached 349 million yuan, of which the sales of semi-cooked cheese accounted for nearly 30%.

However, since 2019, Hollyland has never launched a popular product that can compete with semi-cooked cheese. It's understandable why it's always looking for incremental business.

Hollyland sells milk tea, benchmarking Bawang tea Ji?

△ Picture self-dining book

In addition to this "good tea", in February this year, Hollyland also launched the pet baking brand Holiland Pet, positioning pet birthday cakes and pet service experience, priced at 168~218 yuan. The market feedback for this new brand was not bad, and some pet cakes sold out quickly.

The market feedback of "Good Tea" is also okay, with some consumers saying that "Hollyland has solved her afternoon tea at one time", and on Xiaohongshu, the topic of "Hollyland Milk Tea" has more than 10,000 notes.

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