Interesting understanding of business
A new player in the new tea market, Jasmine Milk White, has recently received another round of financing. This means that the brand strength of jasmine milk white has been recognized by the capital market. Can jasmine milk white be among the top of the new tea industry?
1. Jasmine milk white received nearly 100 million yuan in financing
According to media reports, recently, Jasmine Milk White has received nearly 100 million yuan in financing, led by Ali Local Life, and Sunningdale Capital serves as the exclusive financial advisor for this round of financing. The funds from this round of financing will be mainly used for product research and development, brand investment, supply chain improvement and team building, while empowering franchise partners to continue to build lightweight models. Regarding the participation in Jasmine Milk White, Ele.me responded: "'Advancing with the ecology' is the long-term and firm mission and vision of Ele.me, and Ele.me insists on growing together with brand merchants and becoming better together." ”
Image source: Weibo screenshot
Tianyancha shows that this is the third round of financing obtained by Jasmine Milk White. In January 2022, Jasmine Milk White received a seed round of funding from Waterdrop Asset for an undisclosed amount. In May of the same year, Jasmine Milk White completed an angel round of financing of tens of millions of yuan, led by angel investor Song Huanping, followed by Li Chengdong, founder of Dolphin Society, and Happy Tiger Fund. It is worth mentioning that Song Huanping has previously invested in new tea brands such as Lele Tea, as well as catering brands such as Hutouju Chinese pastry and Chen Xianggui Lanzhou beef noodles.
Image source: Tianyancha
Jasmine milk white, which is favored by capital, is a rookie in the new tea market. According to public information, Jasmine Milk White was established in 2020 and began in Shenzhen, focusing on jasmine fragrance · Chinese tea, and currently has 4 series of fresh tea milk white, Genting milk white, fruity fresh tea, and cheese pure tea, and the signature jasmine series has an annual sales of more than 690,000 cups. Its founder Zhang Bocheng revealed to the media that there are 785 stores in operation and more than 100 stores under renovation, and the number of stores is expected to reach 1,100 to 1,200 by the end of this year. Founded more than four years ago, what is the "secret" of Jasmine Milk White to gain a foothold in the new tea market and further expand its scale?
2. What makes Jasmine Milk White stand out?
In order to enhance competitiveness, new tea brands continue to enrich raw materials, and now the combination of tea + fresh milk + fruit has become very common. To this end, Jasmine Milk White chose a subdivision track with jasmine tea as the tea base to create a series of products. Jasmine tea is a relatively common tea in China, and jasmine milk-white products are loved by many consumers. At present, in addition to jasmine tea, jasmine milk white has also developed gardenia, white orchid, osmanthus and other floral fresh milk teas.
The success of Jasmine Milk White is also inseparable from marketing. Jasmine Milk's own IP "Mo Xiaobai" is an image with oriental elements. The self-owned IP not only gives jasmine milk white cultural connotation, but also attracts some young consumers. On social platforms, some netizens said that they liked Jasmine's milky "Mo Xiaobai" very much. In addition, many new tea brands commonly use marketing methods - co-branding, jasmine milk white is also trying. Some time ago, Jasmine Milk White teamed up with the popular IP Pony to launch a limited co-branded event. In July, Jasmine Milk White and the classic IP "Garfield Family" launched the "Lazy Cat Games" theme activity, combining the joint event with the high-profile Olympic Games, aiming to attract more middle-aged and young consumer groups.
Image source: Weibo screenshot
It's just that the co-branded activities have not brought all positive effects to Jasmine Milk White. Some netizens posted a lightning post saying that the co-branding of jasmine milk-white is "either less this or less that", "if there is no material in the co-brand, you don't want to be hard-linked", and some netizens "turned black" to the brand because of this.
Image source: Xiaohongshu
In addition, Jasmine Milk White has also worked the brand image. Compared with most new tea brands, Jasmine's milky white store decoration and product packaging are distinctive, and its girly pink color attracts many consumers. At the same time, Jasmine Milk White has also developed fragrance products with the same fragrance source as milk tea, which further enhances the fashion attributes. However, when jasmine milk white rose in the new tea market, the outside world questioned it and did not stop.
3. Can jasmine milk white be among the top in the new tea beverage industry?
On social platforms, netizens have mixed reviews of jasmine milky products. Some netizens said that they love it very much, and it is very delicious. However, some netizens feel that it is more general, a little light, uncomfortable in the throat after drinking, or the flavor and creamer taste are relatively strong. Some netizens also thought that after drinking it, it tasted very similar to some brands of jasmine milk green.
Image source: Canned Gallery
Not only has the taste been questioned, but jasmine milk white has also had many food safety problems. On the black cat complaint platform, there are many complaints about jasmine milk white. A consumer complained that he drank a fly in a sealed jasmine milk white, and the merchant refunded the consumer without his consent. Another consumer was diagnosed with gastroenteritis in the hospital due to an unknown flocculent at the bottom of the jasmine milky white cup. This kind of thing is not an isolated case, on social platforms, some netizens complained that insects, hairs, magnets and other foreign objects were found in the jasmine milk.
Image source: Black Cat Complaint
In addition, although Jasmine Milk White has obtained a new round of financing, due to serious homogenization, brand competition to reduce prices, and the gradual saturation of the market scale, the new tea beverage industry is facing a cold situation in the capital market. The market value of Nai Xue's tea plummeted after its listing, and after the tea Baidao, the "third share of new tea drinks" was never born, indicating that the capital market's enthusiasm for the new tea drink industry is fading. This is a big challenge for the new tea brands that are backing on the rapid expansion of capital.
After the news of the new round of financing was exposed, Zhang Bocheng, the founder of Jasmine Milk White, revealed that in the first half of this year, Jasmine Milk White's revenue increased by nearly 400% year-on-year. As a rising star in the new tea beverage industry, the development speed of jasmine milk white is not fast, however, there are many leading players in the new tea drink market, and it remains to be seen whether jasmine milk white can be among them.