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    Home > Food News > Food Articles > Can "sinking market" become a "Nugget Point" for new tea drinks?

    Can "sinking market" become a "Nugget Point" for new tea drinks?

    • Last Update: 2022-09-01
    • Source: Internet
    • Author: User
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    The recent overall performance of new tea shops is not as satisfactory as in the past two years, and this is matched with contractionary tactics such as price cuts and store closures


    iiMedia Research recently analyzed that, from the perspective of scale, cost and consumption trends, the sinking market has huge potential; but the sinking market is complicated, and for a specific brand, the sinking market may not be as "everywhere" as imagined.


    The new tea shop collectively moved to the sinking market

    The "2021 China New Tea Industry Analysis Report" pointed out that the sinking market has become a new growth point for new tea


    Especially after about two years of rapid expansion, new-style tea shops have generally encountered scale bottlenecks


    First of all, the population base of the sinking market is quite large


    According to the survey data of iiMedia Research, some new tea shop brands are mainly targeting the sinking market, while some high-end brands are entering the sinking market.


    Secondly, the operating cost of the sinking market is relatively low


    In the sinking market, due to the relatively low price of urban locations, store rents are cheaper, and labor and other costs are also lower than first-tier cities


    Once again, the consumption potential of the sinking market is huge


    It is these characteristics that are different from the first- and second-tier cities that make those midstream brands of new tea drinks that are not well-known in the first- and second-tier cities, but operate exceptionally well in the sinking market and jump to the forefront brands, such as Yihetang milk tea in many three.


    The sinking market is not "gold everywhere"

    iiMedia Research believes that the sinking market has opened up a new "blue ocean", but as a new "gold nugget", it is not "gold everywhere"


    The operation mode of new-style tea beverages may be more difficult for new-style tea shops that started from first-tier cities to enter the sinking market, and the layout of the industrial chain needs to be readjusted


    From the second half of last year to this year, many new-style tea shops have shrunk their front lines, and the opening of shops has slowed down significantly


      For those new tea shops that did not start from first-tier cities, the sinking market is the most familiar field, and perhaps it is more familiar to move to the sinking market


      First, location selection is more important


      For the first-tier cities with huge urban scale, there are many main commercial centers, sub-commercial centers, and even many community centers have a denser flow of people, which provides a steady flow of customers for new tea shops


      In the sinking market, there may only be one commercial center, and the location is limited, and the market competition is more intense; if it deviates from the mainstream commercial center, the sales volume will drop significantly; if the distribution is unreasonable, it will also affect the overall performance.
    Yan Yuese revealed poor management and labor disputes, one of which is that the layout is too dense
    .

      Second, the model is more particular
    .
    New-style tea shops are gradually subdivided.
    In addition to tea, first-line brands such as HEYTEA and Naixue’s tea are more prominent in “sit down and leisure consumption”, and the leisure area is larger; while some brands are mainly operated in stalls , FMCG or takeaway, no leisure area
    .

      The two models have their own advantages and disadvantages.
    Young consumers in the sinking market not only have a strong demand to catch up with consumption trends and seek leisure experience, but also have a demand for light fashion and fast-moving consumption
    .
    It is worth weighing and considering which operating model to adopt
    .

      Finally, price is more sensitive
    .
    It is an indisputable fact that the overall purchasing power of the sinking market is not as good as that of the first-tier cities, and consumers are more price sensitive
    .
    At present, the price of a cup of new tea in first-tier cities is relatively moderate at 15-22 yuan, but the average price in the sinking market will drop to 10-15 yuan
    .
    Some operators have reported that opening a milk tea shop in Guangzhou follows the opening of a milk tea shop in Qingyuan, and the price factor has a great influence
    .

      For operators, although there is huge space and less cost to sink into the market, the market situation is relatively more complex, and the overall layout, model and price positioning need to be considered
    .
    This is also another "internal strength" that tests refined operations
    .

      (Luo Chen)

     

      "China Food News" (May 16, 2022 Edition 07)

      (Editor in charge: Luo Chen Gao Jiaodi)

     

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