Xi Tea price, tea Yan Yue color price, milk tea industry “battle royale” is still continuing

2022-08-02 0 By

Business | moment, author | yunmeng ze, edit | Zhou Ye milk tea industry “polarization” intensified.On January 5, Tea Yanyue announced the price hike on its wechat public account, raising the price of most of its milk tea products by one yuan, zhi Xiao by two yuan.Tea Yanyue said in its official account that raw materials and other costs in the market have been rising year by year, and the dividends accumulated before can not bear a series of overlapping costs, so the price rises.However, recently, Xi Tea, the first echelon of milk tea track, chose to operate against the wind and lowered the prices of some products, including fruit tea, milk tea, pure tea and many other single products, with a range of about 3-7 yuan.Now when you open the mini program Xicha Go order, you will see that xicha has launched two categories of products “to be affordable” and “to be simple”, and even products with single-digit prices.Compared with the “large” price reduction of Xi Tea, the “price increase” of Tea Yanyue rose by 1 yuan and some single products by 2 yuan, which is very careful. But between this decrease and increase, it also reflects the white-hot competition situation of milk tea industry.According to iResearch, the market share of high-end brands in China’s new tea drinks — those with a unit price of more than 20 yuan — will be only 14.7 percent in 2021.More than 85 percent of the market share is dominated by low-end brands with a unit price of less than 20 yuan.Xi Tea shop, Picture/Xi Tea official Weibo The first echelon of Xi Tea by reducing prices, expand customer groups, trying to compete for the middle and low-end market, and tea Yan Yuesei struggling in the middle market, not only to remedy the economic losses caused by a series of large-scale store closures, but also to reserve funds out of Changsha, price rises is a helpless move.In fact, due to the continuous rise of raw materials and other costs, the general rise in consumer prices has been inevitable. The price rise of Tea Yan Yue Se is just the epitome of the “price rise tide” in milk tea industry.2022 is still in the beginning, and the elimination of milk tea industry is still continuing.On the one hand, the market competition is intensified due to the continuous rise of raw material costs, while on the other hand, the head player likes tea to go against the trend and cut prices to impact the middle market, accelerating the industry reshuffle, and the war in the second half of milk tea industry will only be more tragic.Tea Yueyue color, once known as the “light of Changsha”, has risen in price after five years.On Jan 5, Tea Yan Yue Se announced on its official wechat account that most milk tea products will increase by 1 to 2 yuan from Jan 7, 2022.And as the core product of tea Yanyue color “Orchid latte” and “sound oolong”, the price of 1 yuan, respectively, from the original 16 yuan and 15 yuan, became 17 yuan and 16 yuan, and leisurely leisurely, floating life half a day, zheng zheng paper kite this time does not rise.The price rise of tea Yanyue color has been trending on Weibo, showing a haggard face in need of funds.Tea Yanyue also mentioned in her wechat account that it has been more than five years since the last price adjustment.The price has not been raised before, which is supported by brand dividends and purchasing dividends brought by scale expansion.As for the reasons for the price increase, the official of Tea Yan Yueshi said that raw materials and other costs in the market are rising year by year, and the accumulated dividend cannot bear a series of overlapping costs.Chayanyue’s official twitter post explained the price hike in detail, and it’s not hard to see chayanyue’s cash-strapped predicament.In 2021, Tea Yanyue has experienced a wave of store closures, including the first temporary closure at the beginning of the Spring Festival and the second one at the end of July when the epidemic was repeated.On November 10 last year, Tea Yanyue announced its third store closure through its official Weibo account. About 80 stores in Changsha were temporarily closed, and will be reopened gradually depending on the situation. It stressed that temporary closures in some areas with high density will become normal.Frequent and mass closure of stores three times a year also led to the failure of tea Yanyue’s income.In the third wave of store closure alone, although 480 stores of Tea Yanyue are in normal operation, most of the 87 stores temporarily closed are located in Changsha, which is equivalent to a direct reduction of nearly 15% of the revenue source.In addition to the hit revenue sources, tea Yan Yue color regional dividends are slowly fading.Before the “store closing tide”, Cha Yan Yue Se had nearly 500 stores in Changsha alone, and the number of stores in changsha’s Internet celebrity pedestrian street even reached a dozen. Opening stores of the same brand in the same area is bound to share the geographical location of stores, and the market share is limited. In the long run, it will naturally lose regional dividends.Repeated epidemics, disorderly expansion, fading regional dividends and economic losses brought about by the “tide of shop closures” make the decline of Tea Yanyue color fully manifest.Frequent “store closure tide”, Tea Yanyue se must have more funds to support, so the price of the product is understandable, it wants to go out of Changsha, also need more income.In fact, tea Yueyue has been exploring out of Changsha, the local store density can not support tea Yueyue further penetration, the new growth curve needs to blossom in more places, to break out of the external to obtain new vitality.However, want to go out of Changsha is not easy, to a second-tier city, tea Yan Yue color to face entrenched for a long time like tea, nai xue tea, we must do a long line of battle “burn money” plan.And to expand the sinking market to counties and towns, but also with Michelle Ice City, a little waist brand hand-to-hand, it is difficult to win the favor of young people in small towns in terms of cost performance.When Shenzhen Wenheyou opened, there were two tea Yanyue “pop-up shops” on the negative first floor and the third floor respectively. At one time, 50,000 people queued up and scalpers bought a cup of tea yanyue for up to 200 yuan.However, the good times did not last long. After only five months, Tea Yanyue announced its withdrawal from Shenzhen. Tea Yanyue wanted to replicate the success of “Changsha model”, but there was a long way to go.”Going out of Changsha” and “closing shop tide” have become the dilemma of tea Yan Yue Se, and the product price increase as a means of directly increasing income, is expected to alleviate the dilemma brought by both.For tea Yanyue se, the irresistible tide of closed stores, changsha, all through the “lack of money” signal, but the price may also let consumers choose other brands, in the competition of the hot tea market, this is undoubtedly a risky move.02 Happy tea price reduction, harvest more market in the tea yan Yue color price rises in the waves, happy tea has “done the opposite” began to reduce prices.On January 10, many netizens found that the price of some products of Xi Tea was reduced.Specifically, pure tea products are the cheapest after price reduction, such as pure green tea from 13 yuan to 9 yuan, pure bud from 16 yuan to 11 yuan, Zhizhi green tea from 19 yuan to 14 yuan;Milk tea category has the biggest price reduction, for example, pure milk tea from 22 yuan to 15 yuan, down 7 yuan;Pure raspberries in fruit tea have also been reduced by 7 yuan to 25 yuan, while fleshy grapes without cheese have been reduced from 29 yuan to 25 yuan, and Zhizhiberry/manmang has been reduced from 32 yuan to 29 yuan.Small ingredients, cheese also down 1 yuan.However, compared with other mid-end milk tea brands with an average price of about 15 yuan, The Price of Xi Tea still does not break away from the price range of Gaoke unit price.Xi Tea this bucking the trend of price reduction behavior, and tea Yan Yue color helpless price rise formed a sharp contrast.At this time, Xi Cha lowered the prices of some products in order to retain consumers with the advantages of high-end brands combined with “cost-effective” in the fierce competition in the tea market, and expand customer groups, and compete for the sinking market with the increasingly popular low-end brands such as Xi Cha, which is also a weapon to quickly seize market share.What is revealed behind this is that Xi Cha is trying to expand the mid-end market, trying to exchange for a larger consumer market with the price and compete for more users who were originally hesitant about the price.As for the question of high-end quality brought by price reduction, Xicha officials mentioned that this round of price reduction benefits from brand potential, scale advantage, continuous accumulation in the supply chain and deep cultivation in the upstream, Xicha has the ability to adjust the price of some products on the premise of unchanged product formula, material and quality.For Xicha, the initiative to lower the price is not really for the welfare of consumers. Up, it can compete with nai Xue tea, which is also the head track, and down, it can compete with CoCo Duke, Little tea, Tea Baidao and other mid-range brands.The “price war” initiated by Xi Tea, no matter up or down, can compete for a part of the previous “swing consumers”.From the point of view of the main signature products, Lele tea’s strawberry peach cheese, cherry cheese and grape cheese are priced at 31 yuan, 35 yuan and 29 yuan respectively, while Naisue’s Baqi cheese Mango, Baqi cheese strawberry and Baqi jade orange are priced at 30 yuan, 32 yuan and 29 yuan respectively.And happy tea with the type of products in the price, meaty grapes, meaty manawn manganlu, zhi Zhi berry did not exceed 30 yuan.Hei Cha and Nai Xue cha, priced at around 30 yuan each, are touted as the first tier of freshly made tea.After the price reduction of Xi Tea, although there is only a few yuan difference, it may affect the decisions of many consumers. This is undoubtedly a strategic means to grab customers and reap more market.And xi Tea price down after the market, the audience is broader.According to the “2020-2021 Chinese New Tea Industry Development Report” released by NCBD, in the acceptable price range of a single cup of milk tea, 10-15 yuan corresponds to the most extensive consumer group, accounting for 57%, followed by 15-20 yuan, accounting for 27%.10-20 yuan price range of products gathered the most extensive consumer groups.Previously, Xi Cha launched its sub-brand Xi Xiaocha, aiming at this price range, but The expansion of Xi Xiaocha was not fast and it had no presence in markets outside Guangdong.Because this has always been “high-end” the happy tea personally end, through this price reduction, there are also many products into this territory.This will further increase the “roll-in” degree of milk tea industry.The cost is rising, but the competition is more fierce under the epidemic, the consumer goods industry “rising sound”, milk drinks and other fields of many enterprises have raised the price of products, milk tea track is also in hot water.On January 4, Shanghai Hairong Food Technology Co., LTD., a major supplier of dairy products upstream of the milk tea industry, announced that it would raise the ex-factory prices of some products by 5%-8% due to rising costs of major raw materials.Panda Dairy Group Co., Ltd. also announced that it will raise the ex-factory prices of its main condensed milk products by 3 percent to 10 percent.And the price of sugar, the main raw material for milk tea products, continues to soar.Prices have also been rising since the second half of 2020, according to public data.At the beginning of 2021, the average price of first-grade white sugar was 5630 yuan/ton, and at the end of the year, the average price of first-grade white sugar was 5718 yuan/ton, up 1.56% and 5.82% compared with the same period last year.Global sugar prices also rose during the same period due to an associated rise in shipping costs, as well as a string of droughts and frosts in Brazil that reduced sugarcane production.In the cost of freshly made tea, raw materials are the most important cost, accounting for about 40%.In addition, packaging consumables, machine metal parts prices have also increased to a certain extent.The increase of raw materials is serious, and the implementation of “plastic limit” has increased the operating cost of milk tea industry, including paper straws and fully degradable plastic straws, which makes the daily operating cost of stores increase sharply.The milk tea industry is experiencing a surge in price rises in the supply chain. However, in the context of the general rise of raw materials, Xi Tea is cutting prices for the first time, which makes the competition on the track more internal.Xi Tea’s initiative to reduce prices, the biggest impact is bound to be the mid-end brands, and lower gross profit milk tea brands will directly face the test of life and death.Xi tea after the price, the guest unit price has been lower than 30 yuan, “parity” and “simple” two big price range of the tea series, and is the second tier of the world, tea also this product such as book, tea way, Shanghai aunt, COCO, most tea brand products are concentrated in this price range.Obviously, the price reduction of Xi Tea directly accelerates the industry reshuffle, and most brands in the mid-end tea market do not have sufficient moat to carry out a price war with it.In the soaring raw materials, high rent, rising labor costs and other factors, many brands in the mid-end tea market are Mired in the struggle between gross profit margin and single store flat efficiency.The gross margin of Xi Tea is almost the highest among all brands. According to the special research report on high-end tea industry released by Guosen Securities, the gross margin of Xi Tea is about 65-70%, and the ping efficiency of Xi Tea shop is as high as 120,000 yuan/year/square meter.In a research report measured by Dongwu Securities, the same standard store ping effect, Michelle Ice City only 50,000-67,000, tea hundred way, a little bit and other brands squatting in the low-end market can not compete.Xi Cha cut prices to grab users and market share, which will further compress the living space of competitors, and even some low-end brands will be difficult to survive.The industry reshuffle of tea beverage in the second half may accelerate, and the number of users, stores and the final scale of revenue will be a sharp weapon to compete for the market.The cost is rising, and the war of milk tea industry will only become more fierce, tea brands without the strength to obtain lower raw material prices, or will come to the crossroads of survival, survival is a difficult problem.In 2022, the tea industry will stage a new round of “battle royale”.