The smell of gunpowder in the competition for new tea drinks in the sinking market has become stronger.
With the launch of the coffee sub-brand Lucky Coffee, the tea market is becoming more and more saturated, and brands are no longer limited to a single field, but to expand their audience and find new growth points by launching differentiated sub-brands.
Shanghai Auntie, who has submitted an IPO prospectus on the Hong Kong Stock Exchange, has also joined this differentiated battle.
On March 6, Shanghai Auntie launched a new tea brand "Tea Waterfall", although it belongs to the same tea field as the main brand, the unit price of "Tea Waterfall" is 2-12 yuan, aiming at students and the Z era.
Obviously, the task of Tea Falls is to grab the sinking market.
In factShanghai aunt has a certain advantage in the sinking market. According to the previous prospectus, as of September 30, 2023, Shanghai Auntie has a total of 7,297 stores, of which 49% are located in third-tier cities and belowThe proportion is second only to the "King of Sinking" Honey Snow Ice City.
The distribution of stores of new tea drink IPO companies, see the self-made map of the research on Zhizhi).
Shanghai Auntie also emphasized the importance of the sinking market again at the press conference, "Due to the slowdown in economic growth, consumption is graded, consumers' demand for high-quality and affordable products has increased significantly, and the milk tea market below 10 yuan has shown a blue ocean trend." ”
Compared with most milk tea brands gathered in the 10-20 yuan ** band, occupying the largest share of the tea market, the competition is extremely fierceThere are fewer participants below 10 yuan, and there are only 3 milk tea brands with a scale of 5,000 stores, and the market is mainly dominated by Mixue BingchengIt is also the biggest contender for Tea Falls.
According to the data of Guolian**, Mixue Bingcheng has monopolized the sinking market by virtue of the scale effect of 30,000 stores and the cost reduction of the ** chain and its own factories accumulated over the yearsshare.
During the reporting period, Shanghai Auntie closed 210, 393 and 298 franchise stores respectively, and the corresponding closure rate was. 49% and 411%, and the company remained below 3% in the same period.
According to the disclosure of various prospectuses, the revenue of Mixue Bingcheng, Gu Ming and Tea Baidao will reach 135 in 20227.6 billion, 555.9 billion, 423.2 billion, of which Gu Ming's revenue is about 2 times that of Shanghai Auntie, and its net profit is more than 3 times that of Shanghai Auntie.
So what does Shanghai Auntie rely on to attract franchisees?
This year, the fierce competition in the sinking market is no longer the same, not only the second- and third-tier brands through the establishment of sub-brands to seize the spot, more high-end brands such as Naixue and Heytea have also recently lowered the threshold to join to grab the share of lower-tier cities.
At the same time, as IPOs are approaching, they need to let the capital market see more "growth potential".
Tea waterfall, which is not dominant in scale, can only attract franchisees to open stores quickly through lower fees and more subsidies, although the limited number of stores in the early stage can not play a role in scale effect, but in view of its sharing of the Shanghai aunt's ** chain system, the cost pressure will not be particularly large.
In terms of franchise fees, the franchise fee for the standard version of Shanghai Auntie is about 200,000, Mixue Bingcheng is about 210,000, and Tea Waterfall is 120,000. Even if the decoration cost of about 60,000 yuan is removed, it is still about 30,000 yuan higher than that of Tea Waterfall.
According to the franchisee, the tea waterfall also has a subsidy fee for the franchisee, including a "fixed-point subsidy" for honey snow ice city or sweet lala within 100 meters of the straight line; Franchisees who receive more than 100,000 yuan in any month within 3 months of business can also receive a subsidy of 20,000 yuan. Obviously,Tea Waterfall urgently needs to "envelop" franchisees through this rapid subsidy method to achieve the purpose of narrowing the gap between the number of stores and the head brand.
In addition, according to the menu of the Tea Waterfall store, the unit price of the Tea Waterfall is 2-12 yuan, and there are many drainage products or core explosive products with a high degree of overlap with Mixue Bingcheng, such as ice cream for 2 yuan and lemonade for 4 yuan.
But it can still be seen that Shanghai Auntie's differentiated product selection strategy. Aunt Shanghai emphasized it at the press conferenceAffordable light milk tea products are not only different from Mixue Bingcheng, which is the main fruit tea with the same **, but also different from Bawang Tea Ji Fresh Milk Tea at a price of 15-20 yuan.
A selection that distinguishes it from Honey Snow Ice City).
A number of bloggers have said on XiaohongshuThe taste of the light milk tea of the tea waterfall is similar to that of the Bawang tea girl, and ** is only half of the Bawang tea lady. Tea Waterfall is expected to attract a group of its own customers with differentiated selection.
With the addition of Shanghai aunts, the ** belt below 10 yuan will usher in more fierce competition.
With Mixue Bingcheng, Tea Baidao, Gu Ming, and Shanghai Auntie submitting IPO prospectuses on the Hong Kong Stock Exchange, the capital market is eager to hear the story of growth, which also meansNew tea brands must quickly compete for low-tier market share, and it is not excluded that brands will enhance their competitiveness through mergers and acquisitions, while small brands that do not have financial strength and cannot hold their thighs will usher in a wave of liquidation.
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