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    Store Password, Fawn, Tea Run Truth: Go To The Countryside, Burn Money, Slum Girl...

    2019/11/19 16:44:00 0

    Xi ChaRui XingFawn Tea

    On the line for half a year, "flying alone" for two months, fawn tea suddenly accelerated.

    "28 cities across the country, here we come!" Recently, the deer tea in exclusive micro-blog, WeChat announced the explosion shop news. Xiao Zhan, the mouthpiece of the deer's tea, dressed in "the deer tea blue", laughed a big white tooth.

    One breath, 28 cities, 42 stores, celebrity endorsements + burn subsidies, the "Crazy" pace of the deer's tea is exactly the same as that of Rui, who was born at the beginning. But we should focus on the expansion of the stores behind the two aspects.

    Relying on the sinking market and "0 yuan to join", the fast attack method of fawn tea has been much lighter. But "light", to a certain extent, means instability. Stall has become a potential crisis.

    01

    Go to low level cities

    According to the statistics of commercial real estate headlines, 26 of the newly opened 42 stores are located in second tier cities, accounting for 61.9%; 9 cities in three cities and below, accounting for 21.43%; only 7 in the first tier cities, accounting for 16.67%.

    As far as the layout of the store is concerned, the main attacking city of the deer tea focuses on the 234 line, and the consumption scenario is mainly leisure. With the flagship of a second tier city and the locking of office workers, Rui Xing can form regional complementarity.

    Rui Xing prospectus shows that as of March 2019, Rui Xing coffee store has reached 2370, all self run. Among them, Guangdong ranks the top in 386 stores, followed by 343 in Shanghai and 336 in Beijing. It can be seen that the first tier cities are their intensive layout areas.

    On the other hand, compared with coffee, tea drinking has a wider track in the low level cities, and this can also enhance the competitiveness of Rui in various cities to a certain extent.

    According to the data provided by Rui Xing, the market size of China's current tea drinking market in 2018 was 68 billion, and it is expected to rise to 158 billion by 2023, with a compound annual growth rate of about 18.4%.

    According to the 2019 China tea industry trend report, the growth of tea shops in the first tier cities has increased by 59% over the past two years, while the second tier cities have increased by 120%, and the growth rate of the three cities has reached 138%.

    Specifically, fawn tea has 2 or more stores in Fuzhou, Ningbo, Suzhou, Chongqing, Shanghai, Guangzhou, Nanjing, Hefei and Chengdu, and the remaining 19 cities have 1. These cities have the following two characteristics in consumption demand and competition environment:

    Source / US group comment on drawing / commercial real estate headlines

    Great potential for consumption. US group comment data show that in 2018, the top ten of milk tea sales increased. Chongqing, Nanjing, Shanghai and Guangzhou were all listed in the fawn tea store with more stores, and the demand for milk tea was strong.

    Moreover, in the low level cities such as Changzhou, Zhenjiang and Jiujiang, the growth rate of total retail sales in the past five years has been maintained at around 10%, higher than that in the second tier cities, but the consumption demand is huge, but there is no chain brand with scale effect. The deer tea has a certain potential.

    Bypassing strong competitors. At present, the layout of the deer's tea focuses on East China and southwest China. The number of stores is 61.9% and 14.3% respectively.

    In these areas, the tea of Xi Cha and Na Xue has not yet formed a full coverage situation. For example, in Fuzhou and Ningbo, there are only 2 stores in Xi tea, and 3 in fawn tea respectively.

    02

    Targeting families and wage earners

    The channel is relatively sinks and stores are spanning multiple urban levels. This requires that little deer tea be more flexible when choosing a site.

    Commercial real estate headlines statistics found that the main purpose of the deer tea shopping center as a development channel, followed by office buildings. In addition, it also entered 4 schools (3 universities) and 2 Shang Chao (all Huarun 10000).

    Business district selection, according to win big data analysis, deer tea prefer to enter the city's core business circle.

    11 of the 42 new stores are located in the business circle designated by the big win business, and 7 stores are located in mature business circles and municipal business circles, mainly in first tier cities and three line cities, such as Shanghai Nanjing West Road, Guangzhou Beijing Road business district and Changzhou South Street, Tangshan department store business District, etc.

    As a new tea brand, the primary task of this year's tea is to become famous. Therefore, whether it is stationed in the core business circle with fierce competition and expensive rent, or choose the three line business circle, the purpose is to increase the brand effect.

    It is worth noting that the number of residential areas in the 1 kilometers surrounding the commercial area of the deer's tea is more than that of the office buildings. This shows that the group of young deer is not focused on the office white-collar workers, but the family and the salaried class.

    According to win big data, 11 small deer tea shops can be included in the monitoring area of business circle.

    More women than men, young people gathered, the average age of 19-34 years old young people accounted for about 28%, of which 25 years old or above accounted for 34.5%;

    This group has a certain purchasing power, is not sensitive to price, and likes to follow the fashion. According to China Merchants Securities data, the consumers of milk tea products are mainly 15-25 years old, and the consumer group under 30 years old accounts for 71%. The consumption of milk tea was mainly students. In recent years, the demand of high income white-collar workers in big cities has increased.

    Xiao Zhan, the spokesman for the deer tea, is popular among young people, especially young women. Fans are very effective.

    The average wage earners accounted for 43.8%, more than the middle class and the rich.

    At present, the brand differentiation of the new tea industry appears. The price of the tea is high and the span is small. The price of the tea is bigger and the demand is wider. Lele tea attracts customers by pushing the price low.

    Fawn tea is priced at medium level, but because of the large amount of subsidy, the actual purchase price is often very low, which is more welcomed by the working class than the middle class.

    03

    0 yuan to join, partnership shop

    The wider 234 line market and larger consumer groups laid the foundation for the rapid expansion of the deer's tea. But there are two main reasons behind its opening of 42 stores in just two months.

    On the one hand, Rui Xing's pressure to bear the performance demanded that fawn tea must be fast. Since landing in 2017, Rui Xing has been running all the way by virtue of Tang Wei and Chang Chen's celebrity endorsement and large subsidy. It has been established for more than a year to land on Nasdaq, creating the fastest IPO record in the world.

    However, the trend of this crazy expansion slowed down in 2019. By the end of June this year, there were 2963 stores in Rui Xing, a net increase of 890 in half a year, and the expansion in the first quarter slowed down significantly.

    Although the speed of opening shop has been improved after listing in May, according to the current progress, it is necessary to achieve the goal of 4500 stores nationwide by the end of 2019. After all, losses are still rising.

    In the second quarter of 2019, the total revenue of Rui Xing coffee was 909 million, up 689.4% from the second quarter of 2018. However, the total cost of revenue reached 1 billion 599 million, which shows that its net loss in the second quarter was 681 million (the net loss in the first quarter was 552 million).

    Against this background, the deer's tea became a booster for Rui Xing's fast running. In this regard, Liu Jian, chief operating officer of Rui Xing coffee, has also indicated that tea should be taken as another important starting point to further expand the breadth and depth of the market.

    But in terms of vision, operation, product mix and so on, the deer tea is different from Ruixing. Its location is "young people's vigor tea drink", which is endorsed by popular star Xiao Zhan. Its products cover a variety of milk tea, master coffee series, light food and its surrounding areas, and has an independent APP, public number...

    In the same way, the deer tea continued the Rui Xing crazy subsidy operation, a cup of original price 27 pieces of milk tea, after the discount generally only a few dollars...... This is undoubtedly an important reason for "sales exceeding expectations" since the launch of the fawn line.

    Of course, another subjective factor in the fast running of the deer tea is the "0 month franchise" partnership mode, which is in sharp contrast to the Rui Xing's self run strategy.

    According to Rui Xing official, fawning tea has a self operated store operated by headquarters and a new retail partner's investment and operation store. In essence, the "new retail partner" is joining.

    The difference is that the fawn tea does not charge the membership fee, and it also takes the cost of new user subsidies, providing brand marketing, product development, digital operation, supply chain management and other support.

    The location, decoration and daily operation of the store are the responsibility of the partners. As a result, two major costs of stores and labor were passed on to partners.

    On the other hand, Rui Xing gave a profit estimate. In the most ideal situation, if a daily sale of 800 cups of fawn tea, 13 yuan per cup and 50% gross profit, the gross profit margin of partners will be about 156 thousand yuan per month, and the monthly delivery fee will be 110 thousand and 600.

    This means that partners will be able to return to their books in a few months if other costs are deducted. In addition, Rui promised that the profit level of stores would not reach the expected level.

    0 yuan to join, quick return, sharing risks and other multiple "temptation", there must be a large number of new retail partners to rush to "lucky" work. But there are many problems behind the lightness of playing.

    It has been half a year since its listing, and its mode is still in the stage of continuous improvement. Whether it can really run through is still a question mark. In this context, how can we ensure that it has the ability to continuously provide operational guidance, technical support and business training for the new retail partners?

    In terms of luck, the addition of new retail partners will reduce the cost of expansion to a certain extent, but it may also encounter all the disadvantages of all franchisee models, such as confusion in management and the difficulty in ensuring product standardization. If it is not handled properly, it is also possible to smash the fawn tea sign.

    A high quality run is not shouted by slogans, nor by burning money. The lucky deer's tea needs to find the answer before stall.

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