Consumption Upgrading And Social Attributes, New Tea Has Entered The Golden Track

In 2020, 86% of users will purchase new tea at least once a week, and the existing tea will enter the golden track.

Liu Yuenan, an analyst at Guotai Junan, pointed out that the market size of the new tea industry will reach 113.6 billion yuan in 2020, with a compound growth rate of 22% in the past five years. It is estimated that the market size will reach 340 billion yuan in 2025. According to the model calculation, the floor area efficiency of mature new tea shops can reach 91000 yuan / m2, the operating profit rate is close to 30%, and the net interest rate is more than 17%, which is higher than that of Haidilao, Taier, Caozhi and other leading catering enterprises.

With strong social attributes, new tea has become the social currency and consumption carrier of urban young people, with high appearance, good taste and strong topic sense, which constantly improves the consumption intention of young people. The new type of tea not only satisfies the desire of consumers, but also satisfies the consumers' psychological self reward and small fortune. It is a good carrier of happy consumption.

With the capital entering the new tea racing track, it is expected that the number of new tea shops will keep increasing in 2021.

Taking heytea, a new tea chain brand in China as an example, the number of its stores is also expanding steadily. By the end of 2020, Xi Cha has opened 695 stores in 61 cities at home and abroad. The types of tea loving shops can be divided into main stores, take out flash go stores and concept theme stores with topic and experimental characteristics. According to the annual report of Xicha 2020, 157 and 202 main stores of Xi Cha will be added in 2019 and 2020, and 63 and 102 go stores will be added respectively.

Western securities analyst Xu Guanghui said: "from the perspective of industry competition pattern, the current new tea market concentration is relatively high. According to the data of burning knowledge consulting, the market share of Cr5 brand of new tea in China is as high as 55%, among which the market share of hi Cha and Naixue tea is significantly higher than that of other competitive products. The competition barrier of middle and high-end tea industry consists of product force, brand building ability, operation management ability and standardized output ability. And the new tea head brands in mainland China have gradually established their own advantages in these aspects, and have opened the gap with other brands. "

Market expansion

High end existing tea brands mainly started around 2015. High quality chain brands such as Xicha and Naixue tea, etc. lead the industry development in product innovation (adding fresh milk, milk cover, fresh fruit), creating social space, brand marketing and so on, creating a new mode of China's existing tea.

In the long run, China's tea market (especially the high-end tea market) has a large space to increase consumption.

According to cbndata data, the per capita consumption of milk tea in Taiwan and Hong Kong in China is relatively large, with an annual per capita consumption of more than 100 cups. Although there is no habit of consuming milk tea in the U.S., the consumption per capita per year is as high as 500 cups per year for coffee with similar functions. According to the market scale of China's existing tea drinks, assuming that the average price of each cup of tea is 12 yuan, the per capita annual consumption of tea in mainland China is about 7 cups; if the caliber of high-end tea drinks is calculated, the market scale of high-end tea drinks in mainland China is 12.9 billion yuan, assuming that the average price of high-end tea drinks is 20 yuan, the per capita annual consumption in mainland China is only about 0.5 cups, which is far away It is lower than that of Taiwan, Hong Kong and the United States.

At the same time, Xu Guanghui believes that from the perspective of consumption scenarios and frequency, tea is obviously superior to traditional catering, and is mainly self-contained or take away, not limited by time and space, with high turnover efficiency and more prominent profitability. "Combined with Naixue's tea prospectus and our hypothetical split, at present, the annual turnover of head new tea brand single shop is more than 10 million yuan, and the annual operating profit rate is more than 25%, which is better than traditional catering enterprises (Haidilao and Taier). From the perspective of long-term development trend, due to the small area and simplified staff, the pressure of staff costs and rental costs is relatively more controllable, and the location is more flexible, and the long-term opening space and profitability are better. "

During the epidemic period, consumers reduced in store food and increased the frequency of online takeout. In the post epidemic era, online ordering has become a trend. When consumers order online, they will pay attention to the activities on the applet, especially in the promotion and new product activities; for channels and brands, the marketing activities directly communicating with consumers will mainly be carried out through online tools.

According to the "2020 new tea white paper" released by cbndata and Naixue's tea, 54% of consumers will choose online channels to purchase new tea drinks in 2020, and the proportion of online orders for new tea drinks will increase by nearly 20% compared with that in 2019. According to the white paper, since Naixue entered tmall in March 2020, the online sales of new tea drinks on tmall have increased by nearly two times; from January to September 2020, the monthly growth rate of new tea drinks on tmall online is as high as 200%.

The rise of localization

The high-end tea brands have been innovating continuously in products, channels and brands, and the domestic brands have risen.

In recent years, China's new generation of tea brands, relying on local tea culture, have been constantly integrating and innovating, developing cheese tea, fruit tea, "tea + soft European package" and other product formats, breaking through the traditional tea market. The taste, appearance and ingredients of the products are highly recognizable, winning the young consumer market.

In terms of channels, it creates offline store experience in multiple dimensions, brings continuous freshness to consumers through multiple store styles such as standard store, mini store, concept store, etc., digital upgrading improves shopping convenience and marketing accuracy, and constantly extends consumption scenarios.

In Xu Guanghui's opinion, the new tea drinks focus on the application of digitalization and new technology, and the process of order receiving processing delivery is more modular and efficient, and the delivery process is more refined. "For example, Xicha go stores provide self pick-up service, which avoids some omissions and errors in the delivery process, and further improves the efficiency of the delivery process and the sense of technology experience. At the same time, through the new retail extension consumption scene, further strengthen the brand pull, expand cross sales. "

On the other hand, member management system is also one of the key factors to help the development of local tea brand.

The new tea brand pays attention to the development of its members, and actively develops small programs and app to deposit consumer data. At present, the number of tea brand members in Toutou is growing rapidly. According to the official tea website data of Xicha and Naixue, the number of members of the two brands both exceeded 30 million, and maintained a rapid growth momentum. Through the more refined management and marketing of members (points, friends order, etc.), we can improve the repurchase rate of members and the rate of recruitment.

"China's high-end tea market has high barriers, which are mainly reflected in the aspects of brand, channel and supply chain control. In the aspect of supply chain control, the stability of product quality is ensured through direct marketing of stores and self-produced core food materials; in terms of brand building, brand content and cultural transmission are strengthened through the means of rapid product promotion, cross-border Brand Co branding and new retail Continue to occupy the minds of consumers. At present, the tea like tea and Naixue tea have strong layout in the first and second tier cities, and have significant advantages in product power, brand power and store model, and are expected to take the lead in listing, and the development will be further accelerated with the support of capital. " Xu Guanghui said so.

?