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    Home > Biochemistry News > Biotechnology News > Milk tea is used as a capital harvester: 480,000 stores, 80% of which have a daily income of less than 150 yuan

    Milk tea is used as a capital harvester: 480,000 stores, 80% of which have a daily income of less than 150 yuan

    • Last Update: 2021-04-16
    • Source: Internet
    • Author: User
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    In an era when funds are finding homes and buying houses are difficult, this young man chooses to pour happiness into the sweet and greasy milk tea with one bite.
    After all, RMB 2,30 can meet the demand on the tip of the tongue, and it is worth the money in this inflationary period.



    The "just need" of young people has created a huge new tea market.


    Statistics show that 70% of China's new tea drinks were drunk after the 90s and 00s.
    Nearly 30% of them spend more than 400 yuan a month, and more than 30% are spent on 200-400 yuan.


    Milk tea has become the "spiritual opium" of a new generation of workers.
    This is the golden age of new tea, but the epidemic has changed everything.



    In the sixth year of the business, Nayuki submitted the prospectus on New Year's Eve, trying to become the "first stock of new tea drinks".



    At a delicate point in time, Nayuki's listing seemed a bit rush, but it was not surprising.


    In the past few years, the new-style tea industry has been recognized as closely tied to capital, but the goals of the two are the same, both in order to capture the hearts and pockets of young people.




    Nayuki's IPO prospectus gave us a glimpse of the true face of the new tea industry.


    This industry that once attracted many young people and entrepreneurs has finally ushered in a data-based disenchantment.




    The explosion of the new-style tea industry has its inevitability, but more of it is taking the old road of consumer product development: explosion-listing-involution.



    When imitation becomes "tacit understanding"

    When imitation becomes "tacit understanding"



    In 2020, under the haze of the epidemic, the milk tea industry became the first group to resume the takeaway business, saving the taste buds of many people who are isolated at home, which made Chen Xi, who is tired of the life of Beijing Internet giants, determined to escape the Internet.



    "Opening a small shop is my wish.


    There are no professional requirements for milk tea, not to mention that I am a milk tea fan myself.
    " After returning to his hometown in Yantai, Chen Xi joined the local brand "Ahua's Tea".




    “Two of you remembered the take-out orders most clearly in the store.


    One was a friend who delivered three cups of take-out a day, morning, afternoon, and evening, and the other was a customer who ordered 38 times in January.
    ” Based on big data, Chen Xi’s milk tea shop settled in Near the university town, perhaps the site was chosen appropriately.
    “The epidemic is finally over, but there has been no profit.



    For the locals in Yantai, the limited number of stores and the high unit price, the charm of Hey Cha Naxue is not enough to eclipse "Ahua's Tea", but there is another tacit reason in the industry that makes Chen Xi's little girl.


    The shop is maintained.




    "The hottest thing in our shop is grape cheese, and many people say they don't lose Hey Tea.


    " Chen Xi revealed that Succulent Grapes has been the annual sales champion of Hey Tea for many years, but it is not difficult to reproduce this classic, even if it is.
    Small brands have the opportunity to do it.




    In the field of milk tea where the moat is not so high, the best-selling means that there are many followers.


    A common perception of most consumers is that among the various milk tea brands today, whether it is rich milk caps, fragrant tea bases, or pearl tea jelly red beans and other accessories, the products are rich in variety and frugal, but At the same time, it always gives people the feeling of "déjà vu".




    In the melee, imitation and plagiarism are becoming a "tacit understanding" in the milk tea industry.


    In 2018, Naxue’s tea founder Peng Xin publicly accused Heycha of copying its new products, and spending about 60 yuan on Taobao can buy some well-known milk tea “recipes” that are difficult to distinguish between true and false.



    The profit-seeking nature of capital stems from the huge market temptation.
    According to the "2020 New Tea Drinks White Paper" published by Naixue's Tea in December 2020, the market size of new tea drinks is expected to reach 102 billion yuan by the end of 2020.
    By 2020, the number of consumers of new tea drinks is expected to exceed 340 million.
    Will continue to improve.



    Constantly researching and developing new products, for fear that consumers have forgotten their own brands, how anxious are the brands in the roll? The new product is Nayuki every week, and the new product is Hey Tea in an average of 1.
    2 weeks.
    The unhurried Starbucks only releases new products every week and a half.



    There are only a few star products, and the products of each brand are almost similar.
    What innovations can there be even if there is frequent research and development? The answer is cruel: no matter how the brand plays, breaking the limit of milk tea taste is a problem.



    "In fact, no matter whether you use B-fruit oil (freshly squeezed concentrated juice) or jam, the taste of the product is very similar, the only difference is the cost.
    " Senior supply chain person Ling Ke told 36Kr.



    However, the discussion from the perspective of pursuing sales clearly cannot withstand the "soul torture" of a broader perspective.
    Chen Xi, who has worked hard in the Internet circle, has keenly discovered that the milk tea industry is becoming more and more centralized, and the already "crowded" industry has entered a new round of involution.



    The restless capital is also following.
    Naixue's tea sprint is listed.
    After the C+ round of financing, the valuation of Heytea exceeds 16 billion yuan.
    The waist brands such as Guming, Qifentian and Hushang Ayi also broke out financing news one after another.
    At the same time, franchised and independent brands of milk tea shops are flooding the streets and all kinds of fake and independent brands emerge in an endless stream.



    Under the major examination of the epidemic, the milk tea industry has accelerated into the era of oligarchy.
    According to the "2020 New Tea Drinks White Paper", as of November 30, 2020, more than 130,000 Chinese tea companies have ceased operations, accounting for 43% of the total number of companies in the tea industry.
    The retreat of long-tail players has increased industry concentration.
    degree.



    There are nothing more than two reasons behind this, the high premium ability under the brand scale and the constantly crowded track.
    The involution of major brands has just started, and the sickle of large funds is about to be raised.
    Small players like Chen Xi can only survive in the cracks.



    Who is paying for not making money?

    Who is paying for not making money?



    It is really hard to make money to open a milk tea shop.

    It is really hard to make money to open a milk tea shop.



    Naxue’s prospectus revealed this truth for practitioners: In the new tea drink 3.
    0 era, the top seller of milk tea, the three-year revenue was 5.
    7 billion and a loss of 138 million.
    In 2020, the net profit of Naxue’s tea was 4.
    484 million yuan.
    The overall net profit margin is only 0.
    2%.



    Regarding this point, Chen Xi, who is a franchisee of the milk tea brand, has a great say.
    The location of the store was chosen next to the university.
    "The rent alone accounts for half of the ratio, which is a large part.
    "



    Rent is like a double-edged sword.
    A favorable location means higher rents or strong resource support.
    Strong brands can often achieve rent reductions, but this is often a "privilege" that only the head of the brand can have.

    From the perspective of rent ratio, Hi Tea has a slightly stronger premium.
    The rent ratio of its standard stores is 12-13%, and the go store is 10%, which is 2-5% less than the rental cost of Nay Xue.
    As a subdivision giant in the catering industry, they are eclipsed by Starbucks and Haidilao.
    Starbucks' rent cost is 10% of the total cost, and Haidilao's rent accounts for less than 4%.



    Brand positioning consultant Zhang Zhiyu told 36 krypton that according to his calculations, taking Starbucks as an example, Starbucks' profit in 2018 was 16%.
    If it fails to rely on the brand to obtain rent reduction, based on the 25% rent ratio of the industry, Starbucks' profit is only 1 %.
    In this way, Starbucks will become a slave to the rent and eventually make a lonely one.



    "The more stores, the higher the reputation, the higher the turnover of a single store, and the stronger the brand premium ability.
    KFC China has about 6000 stores and McDonald's about 3000.
    The turnover of KFC single store is about 4 million, and McDonald's 2 million.
    Left and right.
    " Zhang Zhiyu said to 36 krypton.



    During the epidemic, news of the collapse of milk tea shops can always get into the mobile phones from time to time, but even if the milk tea shops lose a lot, the head of the industry is accelerating its dominance of the market.
    As of December 2020, the number of newly opened tea stores in Naxue has increased by 20% year-on-year, and Heycha has increased by 31% year-on-year.
    In 2020, the number of leading tea companies has opened stores faster than in 2018 and 2019.



    The number of stores is increasing, and the bargaining power of the headquarters is getting stronger.
    The prices obtained from brands and suppliers are getting lower and lower, and then large-scale procurement is carried out to obtain better raw materials at the same cost.
    As a result, the greater the profit margin, the more secure the quality of the product.



    “In front of the head of the industry, it is difficult for local small brands to occupy an advantageous position in the hearts of suppliers.
    Suppliers always have to guarantee the benefits and costs of the'big customers', so that they can win-win.
    ” Senior supply chain person Ling Kexiang 36 Krypton revealed such an unspoken rule, the involution of each brand will be more serious.



    Although the cost-effectiveness of the shop rent cannot be compared with the head, the small and medium-sized milk tea shop owners have a common topic with Nayuki on the link of raw materials, which requires large capital mobilization.



    "Raw materials are also big heads.
    Even in the later stages of normal operation, the proportion of raw materials must be about 30%.
    " Chen Xi's troubles are not unusual.
    Apart from rent, the largest investment in opening a milk tea shop is mainly in personnel and raw materials.
    Taking Nayuki's tea as an example, the proportions of these three parts are roughly 15%, nearly 30%, and 35-40%.



    With heavy investment, both directly managed and franchised milk tea shops are under great pressure.
    At the current 480,000 milk tea shops across the country, 80% of them earn less than 150 yuan a day, and only 100,000 can make money.



    It is difficult to make a profit, let alone want to earn back the franchise fee? To open a small store of 25 square meters, the initial fee to be invested ranges from 300,000, 400,000, and 1 to 1.
    5 million.
    What is even more difficult is that the previous investment of 200,000 can be used to open a store and pay back half a year.
    Nowadays, not to mention the increase in investment, it will take at least 18 months to pay back.



    Although standing on the commanding heights of the industry, the life of the industry giants is not so easy.



    In addition to the internal rolls of milk tea brands, Nayuki teas also have to face the suppliers' price adjustments at any time.
    This is another round of new harvest for the brand’s profit margin.
    Due to the characteristics of agricultural products, this harvest is volatile.
    .
    Whether it is the acceleration of the plastic restriction order, or creamer, fruit, paper cups.
    .
    .
    The recent raw material suppliers are busy raising prices.



    According to the increase in raw materials, the media generally estimated that the cost allocated to each cup of milk tea should rise by about 0.
    7 yuan.
    1:Dian did not evade, bluntly saying that the cost made it raise the price.
    From February 1st, the price of all products of 1:00 milk tea will increase by 1 yuan.
    In contrast, there is no news of price increase in the heads such as Nayuexi tea.
    , But it is the small brands that are most affected.
    They are afraid of losing customers, so they can only choose to resist.



    "No price increase, it's miserable! I am afraid that the students will not be able to bear it, and the cost of raw materials will rise, so I can only carry it by myself.
    " The epidemic is not over, and Chen Xi's local brands dare not increase prices.
    Consumers who choose them often pursue cost-effectiveness.
    For price-sensitive groups, such struggles will continue for a long time.



    After harvesting the brand franchisees, perhaps consumers will be next.
    The industry generally believes that the peak season is coming, and the demand for raw materials will only increase.
    The price of milk tea is likely to usher in two waves in June and September.



    Reaping and counterattack

    Reaping and counterattack



    Wu Dong and his wife, who graduated from the School of International Relations, opened an independent milk tea shop four years ago.
    In order to meet the daily demand for fruits in the store, at three or four in the morning, the two of them will go to Beijing’s well-known fruit and vegetable distribution center.
    The fruit stall owner bargained.



    In terms of personnel expenses, which accounted for 30% of the cost of opening a store, Wu Dong and his wife decided to "do it yourself, get enough food and clothing", incarnate the machines on the assembly line, cut fruits, make tea, and distribute ingredients.
    .
    .



    The Wu Dong couple milk tea shop has all kinds of fruit teas, and the Chenxi milk tea shop has "not lost love tea" grape cheese.
    In the milk tea 3.
    0 era, fruit tea has become a popular niche in new tea drinks.



    This has been recognized by the digital marketing director of Lele Tea, “The most popular thing is to use fresh fruits as ingredients to get the fresh quality intuitively, and the selected ingredients themselves have a high national recognition and good reputation.
    ” Lele Tea Digital Marketing The director spoke to 36 krypton.



    The presentation of the data is more straightforward.
    According to the data of Huachuang Securities, as of the third quarter of last year, Naxue’s three best-selling tea drinks are Domineering Cheese Strawberry, Domineering Orange and Domineering Cheese Grape, which together contributed 25.
    3% of the sales of freshly made tea drinks.



    Lingke also revealed the second unspoken rule of the tea industry, not only the price, but also the product form is closely related to the supplier.

    “In the face of some brands with weak research and development, suppliers can even directly determine the product form of the brand.
    Simply put, it is to push the formula and the product together.
    The same supplier may distribute raw materials at different prices for products of different levels.
    "



    "Freshness" has become the pursuit of major brands.
    Under this standard, fruit has become the driving force of their supply chain.
    In the catering industry, the supply chain of freshly made tea is relatively simple, but the supply of fruit is a major difficulty.
    This is the fate of the major brands.
    This is also the reason why the tea leaders are crazy to build their own orchards.
    Only a steady supply of fresh fruits all year round can guarantee the supply of fruit tea, the most popular product at present.



    Taking tea supply as an example, the digital marketing director of Lele Tea also confirmed the importance of the supply chain on the 36Kr side.
    "To some extent, self-built supply chains are breaking the current uneven supply of tea industry: good tea is too much.
    Depending on the variety and place of origin, the cost of tea is getting higher and higher.
    "



    In the final analysis, milk tea is a capital game field, behind which is nothing more than a game of big funds such as Tencent, Ali, Hillhouse Capital.
    Between 2011 and 2020, the major milk tea brands raised at least 50 times, with a total financing amount of more than 4 billion.



    Some of these capitals are not only money, but also the ability to mobilize high-quality supply chains.



    Rejecting today's capital, Nayuki has a soft spot for Tiantu Capital.
    Obviously, it is not money.
    Fruit tea is Nayuki's main product.
    Fruit and tea are the key to this product, and Tiantu Capital has everything.



    In 2014, Tiantu Capital invested in the eight-horse tea industry.
    In the following year, Baiguoyuan’s income was subordinated.
    It was this year that the first Naxue opened, and Tiantu Capital also began to pay attention to the downstream industry of tea, perhaps Tiantu I have long been looking for a source for my upstream.



    Lingke pierced the illusion of huge profits for milk tea.
    "The gross profit margin of the upstream supply chain is generally maintained between 20% and 40%.
    The gross profit margin of the brand side is generally around 50% or 60%, which is very profitable, but this is to exclude the cost of raw materials The gross profit of the last cup of milk tea does not exclude rent, labor, and high marketing expenses.
    Once eliminated, the brand's profitability is not considerable.
    "



    It can even be said jokingly that Nayuki Tea is just a wage earner from upstream suppliers, and consumption of the supply chain is the goal.



    However, the current Naxuexi tea still has not shown a situation of dividing and conquering the world.
    There are still 45% of other brands occupying the milk tea market, and an invisible giant in the milk tea industry has gradually emerged.



    The operating mode of the Hakata Group is completely different from that of Hi-Tana Nasuki’s independent brand.
    It takes the supply chain as its origin, and 90% of the raw materials are produced in-house.
    In order to consume its own supply chain and build different brands at the same time, independent teams operate independently and even compete with each other.
    , And quickly occupy the market and share risks in the form of franchising.



    The more intense the brand competition, the more stable the upstream supply chain will be.



    The halo of domestic first-line brand suppliers such as CoCo, 85°C, Hushang Auntie, Gu Ming, Uni-President, Xiang Piao Piao, etc.
    , Jiahe Foods, which produces and sells non-dairy creamer, has had its IPO at the end of last year.
    Compared with Naxue’s losses, Jiahe Foods’ net profit deducted from non-parents was 187 million yuan, 244 million yuan, and 256 million yuan from 2017 to 2019.



    The top players of milk tea have already penetrated this way, and of course they are not reconciled to being harvested.



    For the head of the industry, compared with price, out of stock and low quality are the risks they cannot bear.
    The scale of the milk tea industry is forcing the supply chain to take shape, and at the same time, the brand is desperately cutting into the upstream industry chain for more stable quality and greater industry voice.



    "After Nayukicha entered the upstream supply chain, the life of the upstream supply chain (factories, traders, brokers) was not so easy.
    At present, some suppliers have achieved a 20-30% gross profit margin.
    " Lingke The Nayuki teas in their mouths are shifting the pressure of involution to the upstream link.



    When the milk tea industry leaders are in a melee, the hands of capital are like industry sickles, pruning and cutting leaves at the same time harvesting downstream.
    On the eve of the new tea-drinking oligarchy era, no one knows if they are being used to "sacrifice the sky".



    How long have you not seen the unique decoration and the cool name of the store on the street? Independent brand milk tea shops belonging to small entrepreneurs are dying.
    No matter which city you are walking on, the milk tea shops on a street are nothing more than those chain brands.



    Faced with such a change, Wu Dong was a little bit anxious.
    Before opening a milk tea shop, he and his wife were both civil servants, a stable but boring job he said.
    Now he only feels that it is difficult to tell himself whether his decision to open a milk tea shop was correct.



    "After persisting for so many years, we are very tired.
    In fact, the net profit for the first two years was about 300,000 yuan per year, no more, no less, but I was very happy and felt that I was living for myself, but this time I really couldn’t hold it, or didn’t want to.
    The industry has changed.
    "

    Source: Shang Wenduo

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