Regardless of whether the end of the tea drink is franchised or not, once it opens, the brand hopes to attract more franchisees. On February 28, Nai Xue's tea (hereinafter referred to as "Nai Xue") announced a new franchise policy in 2024, with the investment budget of a single store adjusted to 580,000 yuan, and franchise stores that have completed the contract before June 30, 2024 can also enjoy a marketing subsidy of 60,000 yuan for a single store. Specifically, the 580,000 yuan invested in the early stage includes 250,000 yuan of equipment and props, 120,000 yuan of decoration fees and 60,000 yuan of brand cooperation fees.
According to Nai Xue, on the basis of adhering to the dual-category operation of "tea + baking" and the unchanged consumer experience, franchisees can flexibly choose coffee machines, piping rooms and other store configurations according to the actual consumer needs of the market. According to the data, as of the end of February, Naixue had more than 1,800 stores nationwide, more than 200 franchised stores had been opened, more than 300 stores had completed site selection, and more than 1,000 people had paid 100,000 yuan of intent money.
Regarding the reason for the adjustment of the franchise policy, the relevant person in charge of Naixue said that since the opening of the franchise last year, the enthusiasm for the national intention to apply has been high, and in order to allow more high-quality talents to join the new tea beverage entrepreneurship business, the franchise policy and cost have been flexibly adjusted.
Indeed, compared with when the opening of the franchise was first announced, Nai Xue did lower the threshold a lot this time. In July last year, Naixue announced that it would open up to join, and in terms of funds, the cost of opening a Naixue would be about 1 million yuan, mainly including brand cooperation fees, training fees, equipment and props, decoration fees, and first distribution fees, of which only equipment and props and decoration fees would start at 750,000 yuan. At that time, even with such a high single-store investment, Nai Xue said that it was expected to pay back in about a year and a half.
In fact, there seems to be a certain relationship between Naixue's adjustment of the franchise policy and the current situation of the industry. At the beginning of January this year, Heytea, which is also a tea beverage brand, released data showing that by the end of 2023, the number of Heytea stores has exceeded 3,200, including more than 2,300 business partnership stores, which will be open to the public in November 2022. On the other hand, Nai Xue, 7 months after opening up to join, seems to be able to feel the pressure from her peers. In addition to the speed of opening stores, from the perspective of the same type of tea brand, Naixue's franchise threshold and investment funds are not low.
According to Zhan Junhao, founder of Fujian Great Aim Brand Positioning Consulting, with the intensification of competition in the tea market, Naixue needs to be more flexible to respond to market changes, and lowering the investment threshold can attract more franchisees to join, so as to achieve the purpose of rapidly expanding market share. At the same time, reducing the investment budget can also reduce the burden on franchisees, improve the profitability and payback cycle of franchisees, and further enhance the stability of the cooperative relationship between brands and franchisees. However, Naixue will also face certain risks after adjusting its strategy, in addition to reducing the investment in a single store may affect the company's profit sharing model, on the one hand, the increase in the number of stores will bring challenges to quality control, and on the other hand, if the pace of brand expansion is fast, it may lead to intensified competition, which will affect the brand image.
Looking at the tea market, brands are looking for incremental growth, not only to expand market share, but also to attract consumers by creating sub-brands, opening themed stores, telling health stories, etc., not to mention conventional strategies such as cross-border co-branding and low-price marketing. If Nayuki wants to continue to improve its competitiveness, it needs to do more homework on products and services.
Zhan Junhao believes that in the future, Naixue will also need to continue to innovate products and services to meet the needs of consumers. Not only that, Naixue also needs to strengthen cooperation with franchisees by providing more complete training and support systems, so as to improve the profitability and service quality of franchisees. In addition, Naixue also needs to clarify the brand positioning, strengthen the dissemination of brand culture and story, carry out differentiated layout, and pay attention to changes in market trends and consumer needs, adjust market strategies in a timely manner, and maintain the competitiveness and market position of the brand.
Beijing Business Daily reporter Zhang Tianyuan.