Hi tea, a new tea brand, announced a price reduction on February 24. The whole line of products will be less than 30 yuan, and promised that the price of existing products will not rise during the year. Many experts interviewed said that the current new tea drinking track shows a trend of polarization , some choose to increase the price and some choose to reduce the price, but the two different price strategies are difficult to drive the growth of revenue in the short term, and the dilemma of low net profit of the industry is still difficult to solve.
△ at present, there is no single product with more than 30 yuan on the standard tea drinking menuP align = "center" all products are less than 30 yuan
It is understood that after this round of price reduction, there are no single products with more than 30 yuan . Hi tea said that the prices of several drinks recently put on the shelves, such as light waxy, full bottle of guava grape, full bottle of grape mulberry, are controlled at more than 20 yuan, and more than 10 yuan of drinks will be launched in succession.
When it comes to the reasons for the price reduction, Xi tea said that thanks to the brand potential, scale advantages and deep cultivation and accumulation in the supply chain, it has the ability to adjust the price of 23456 products without changing the materials and quality of products.
Xi tea also said that it has never been a high-priced tea. In the time of growth and development, the price of its mainstream products has been maintained between more than ten yuan and more than twenty yuan for a long time. And this is not the first time that Xi tea has lowered its price. As early as January this year, Xi tea began a round of price reduction.
The reporter compared the menu and found that the price adjustment covers the vast majority of cheese tea, fruit tea, milk tea, pure tea, coffee and other products sold by Xi tea. The price adjustment range ranges from to 10 yuan , and the price adjustment range of a single product is up to 10 yuan. At present, except for a small number of special products, the price of tea like drinks has been lower than 30 yuan, of which the price of pure Lvyan tea and American coffee is only 9 yuan after price adjustment.
Industry insiders said that the catering industry is generally having a hard time. On the one hand, it is difficult for businesses to open source. On the other hand, a number of high costs are tightening their belts. A rise of 1-2 yuan has to be considered carefully for fear of losing their old customers. The price reduction of Xicha has compressed its own profits, which has also brought hidden pressure to other brands P align = "center" what is the price reduction
China Business Daily reporter visited a number of Xi tea offline stores in Beijing and found that consumers did not respond strongly to the price reduction, and the passenger flow of Xi tea stores in several popular business districts did not fluctuate significantly. Some consumers said that doesn't really care about for the price fluctuation of about 1-5 yuan. On the contrary, they pay more attention to the taste of products and the speed of iterative updating.
China Industrial Securities Co.Ltd(601377) 's research report points out that high-end tea drinks rely on high passenger flow and high passenger unit price on the income side and negotiation ability on the upstream and property on the cost side. This is the basis for the price reduction of Xi tea. The brand and scale advantages make Xi tea have a certain price adjustment ability on the consumer side and supply chain.
Bai Wenxi, chief economist of IPG China, said in an interview with China business daily, "At present, the catering industry generally chooses to increase prices due to cost pressure. The practice of happy tea is more a market competition strategy and a correct decision conducive to its long-term development. Happy tea can stimulate the operating revenue in this way, so as to dilute the relevant costs and promote the growth of business performance , and will not squeeze the performance from the profit side. At most, the gross profit margin will increase Narrow. "
Zhu danpeng, an analyst of China's food industry, believes that the price reduction of Xi tea is a way for the whole new Chinese milk tea to enter the mature stage , which is not only conducive to the orderly development of the whole industry, but also meets the cost-effective needs of the new generation of consumers for high-quality products, and better matches the current development strategy of Xi tea.
"It is not ruled out that the adjustment of Xi tea is to connect with the subsequent listing and obtain more customers through price reduction, so as to cover a larger market and obtain a higher market share. Xi tea's current playing method of high quality and medium price has also accelerated the reshuffle of the industry to a certain extent ." Zhu danpeng saidP align = "center" new tea is difficult to make a profit
new tea drinking track "difficult to make money" . Taking Naixue tea, the only tea that has successfully landed on the Hong Kong stock exchange, as an example, its operating revenue from 2018 to 2021 was 1.087 billion yuan, 2.502 billion yuan, 3.057 billion yuan and 4.28 billion - 4.32 billion yuan respectively; The net losses in the same period were 66 million yuan, 39 million yuan, 202 million yuan and 135165 million yuan respectively.
There is no public financial data on Xi tea, but the data of the third-party Jiuqian Consulting Center shows that from July 2021, the Ping efficiency and average store income of Xi tea across the country began to decline. In October last year, the average revenue and sales efficiency of Xi tea shop decreased by 19% and 18% month on month compared with July, and decreased by 35% and 32% compared with the same period last year.
According to the market share, Xi tea and Naixue tea can be called the absolute head brand of the new tea industry. In fact, as early as the beginning of this year, the two have secretly launched a price war , tentatively reducing the prices of some products. For example, the price of fruit tea that likes tea decreased by 2-3 yuan, and that of pure tea decreased by 3-5 yuan; Naixue's tea also lowered the price of some products by 5-7 yuan, and the lowest price of tea and coffee products is only 9 yuan.
It is believed that the purpose of the two leading enterprises to take the initiative to lower their prices is to occupy more sinking markets and middle and low-end users, compete with brands with a gear of 10-20 yuan .
Due to cost pressure, since 2021, Diandian, chabaidao, coco, yihetang, chayan Yuese and other tea brands have raised prices one after another. The hot line of tea which has always been in line and is considered to be a good seller has been caught up with micro-blog hot search topic shortly before the boss quarrelling with employees. The reason behind it is that employees are tasked with low salary and squeezed feeling, while the boss make complaints about the company's loss of about 20000000 yuan a month. After this, the outside world just learned that the tea Yan Yuese, who originally looked very profitable, was actually losing money.
In addition, the development of the new tea industry began to slow down significantly . According to the 2021 new tea research report released by China chain operation association, the growth rate of new tea will slow down periodically in the next two to three years, adjusted to 10% - 15%. Analyze the reasons behind the slowdown. From the perspective of enterprises, in the face of the superposition of factors such as intensified competition, high rent, limited talent reserve, food safety management to be further strengthened, high proportion of takeout and low profit, rapid growth will have great management risks; From the perspective of external competition, the consolidation of sinking market and the development of Western and northern market all need market verification.
Bai Wenxi believes that the current tea industry shows a polarization trend, and the price increase and price reduction are the price strategies of different enterprises under different development strategies and competitive choices. In the long run, the profit problem of the tea industry should also be solved through scale and improving the management level and operation ability to solve.
