Not laughing out of the “wahaha milk tea” people
The story of Wahaha’s milk tea tells us that the $100 billion market for new tea isn’t that dynamic.This article is originally published by Hongcan18, author: Yuhao Jian.March 10, the original Guangzhou Wahaha health drinks Co., Ltd. officially changed its name to Guangzhou Chamei drinks Co., LTD.The name change means that Wahaha group has withdrawn from the milk tea operating company.It is worth noting that before Wahaha withdrew its shares, the main body of the wechat public account of “Wahaha milk tea” had been changed to “Zhejiang Wahaha Health Management Co., LTD.”, which is 100% owned by Wahaha Commercial Co., LTD.This series of moves can not help but wonder: after the removal of the licensing business model, Will Wahaha milk tea under wahaha’s own rebirth?In reality, the market leaves little room for Wahaha’s imagination.At present, the development of the tea market is hitting the ceiling, nai Xue, Xi Cha and other top brands have cut prices to seek new consumer groups;For Wahaha milk tea, the early franchisee storm has made its image damage, and now coincides with the upgrading of the tea market competition, to “turn over” I am afraid it is not so easy.Wahaha’s “oolong” milk tea is full of people, Wahaha in the tea drink this road has been tortuous for nearly three years.According to wahaha’s official website, preparations for the wahaha milk tea shop began in May 2019, followed by construction in November and nationwide investment in December.In Just one year, Wahaha milk tea opened its first direct store in Wushan Business District in Guangzhou in July 2020.Looking back on the opening day, Zong qinghou, 75, flew from Hangzhou to Guangzhou to personally stand for the store.Today, wahaha milk tea’s official website also clearly records the scene of the opening day: “At the opening scene, Chairman Zong Qinghou expressed strong confidence and support for the tea industry, and gave high praise to the company.””Zong qinghou said that after the first store in Guangzhou, other stores nationwide will open in succession.”With the resounding brand reputation of wahaha, Wahaha milk tea soon attracted a number of entrepreneurs to join in.Franchisee xiaoxia to accept the red food network interview said that the original choice to join is to see the brand effect of Wahaha.”Many franchisees like me, take a fancy to Wahaha is a big brand, Tianyan check also confirmed hangzhou Wahaha shares are willing to join.When we signed the contract, they said hubbard Group would take care of the operation.”But after signing the shop, xiaoxia and some franchisees found that wahaha milk tea shop is not directly managed by the Wahaha Group, but authorized to Guangzhou Wahaha health drinks Co., LTD.According to Zong Qinghou, Wahaha milk tea positioning is “healthy, no added, nutrition, zero fat”, and wahaha tonality almost the same, this invisible words also confused the public and franchisees, we all think that “Wahaha milk tea” and “Wahaha” the two brands have a direct correlation.Only later did Wahaha clarify that the milk tea project was not a direct operation of Wahaha, but a project licensed to a partner.This is not the end of the wahaha official s blunder.Like most brands, Wahaha milk tea franchisees need to buy materials from the brand side, and the high purchase price is another point of ridicule.Wahaha milk tea currently has more than 300 stores, 53 of which have suspended business, according to data from Narrow Door Restaurant.A few days ago, the reporter visited the red food network found that the first Wahaha directly operated store in Guangzhou wushan business district has suspended business.And located in guangzhou, a Wahaha milk tea shop in the business district of the guest village, customer flow is not much, and the nearby Xi Tea and a little bit of a sharp contrast.Wahaha milk tea opened more than a year on 375 stores, now nearly three years in the past, the number of stores is not rising but falling, from the original declaration of “ten thousand stores” target is getting further and further away, wahaha do milk tea in the end where the problem?AD calcium milk is not fragrant era, who will care about AD calcium milk tea?As can be seen from the controversial licensing business model, one of the main reasons for Wahaha’s tepid milk tea business is its own business strategy.When it comes to the status quo of Wahaha milk tea, red food network columnist Zhai Bin said, Wahaha do milk tea, the main problems are obvious: the core competitiveness of the brand is insufficient, there is no advantage in the price, “not from fast selling ideas into food ideas, by playing ‘feelings’ is far from enough”.Wahaha tea ideal is very plentiful, according to their website, wahaha milk tea is early childhood nutrition with the feelings, the tide of new elements, the kingdom of moist tea brand, will highlight “childhood memories” for the product in the AD calcium milk, nutrition express, congee for inspiration, creative elements, the main features of AD calcium milk hot style series,It is mainly aimed at consumers aged 16-35.To some extent, the practice of selling feelings has also hindered wahaha’s product innovation.As time goes by, the post-00s have become the main force of tea consumption. For them, the beverage they drank in their childhood is no longer Wahaha. In addition, the current sales distribution of Wahaha products is mainly in the third and fourth tier cities, while the sales in the first and second tier cities are not large, and the coverage is not large.Therefore, for most of the post-00s, AD calcium milk is not “childhood memories”, let alone AD calcium milk tea, and Wahaha milk tea featuring AD Manawn bobo ice, AD grape bobo ice has not ushered in too much product update in the subsequent development, “feelings” has become the witness of their product aging.Embrace the “feelings” tactical failure, but also indirectly exposed wahaha milk tea brand core competitiveness is the biggest short board.Among the 20 products released by Wahaha milk tea shop, the price is mostly between 10-24 yuan, and the price per customer is about 18 yuan, which is just in the middle range of the largest tea market and fierce competition.In the in-depth Report of tea Industry in 2021, Shen Wan Hongyuan pointed out that the number and brand competition in the tea industry are obviously in a spindle shape, with fierce competition in the middle end.As a new person, Wahaha milk tea is directly on the target is a little, tea and other well-known tea brands, but in this strong competitors, Wahaha milk tea products do not have obvious advantages.Take the main AD manawn bobo ice as an example, Wahaha milk tea has been committed to promoting AD calcium milk as the base to create milk tea products, but AD calcium milk is not higher than ordinary milk tea nutritional value, and there is no obvious superiority.ZhaiBin said: “the category of tea track segment already very clear, do lemon tea, do fresh fruit tea, and each segment under the category of already has the representative of the brand, wahaha flagship has been AD calcium milk, however, does not belong to any a niche category now, alone feelings blessing, the core of the brand competitiveness is not enough.”Since the beginning of this year, the price cut of leading brands has worsened the situation of Wahaha milk tea.As one customer joked after drinking Wahaha milk tea, “it’s better to go to the supermarket and buy five bottles of the same drink than to spend several times more money.”Now, a few more dollars can drink a cup of fresh fruit tea with more materials and better quality, the lack of core competitiveness of Wahaha milk tea to gain a firm foothold in the market will only become more and more difficult.In addition, high franchise fees, star endorsements and other franchisee complaints, also pointed to wahaha milk tea operation problems.It seems that after withdrawal, wahaha milk tea even if it really returns to the direct business model, to personally continue the “Wandian dream”, but also to fill these past “holes” one by one.From the story of Wahaha milk tea can also be seen, the new tea drink this 100 billion market cake is not so active.Last year, wahaha for franchisees feather when things have gone too far to one place, it analyzed the cause of the wahaha tea will be a good hand smash, one of them is: before the birth of wahaha, milk tea, domestic tea market is very hot, wahaha incoming time too late, lead to brand did not grasp the dividend market.In fact, wahaha is not the only commercial giant that has taken a fancy to the tea market. Xiangpiaopiao, Wang Laoji, Mengniu and other old enterprises have proved that the timing of entry is not the key factor in determining their fate.Entering the tea market development bonus period, Wang Lao Kat once threatened to open 3,000 stores in 2021, but up to now, the total number of 1828 Wang Lao Kat herbal new tea stores is still not up to 100.Eager to tell their new story at the new racetrack of tea, these giants have repeatedly hit a brick wall at a time when their main business is facing a ceiling.By now, they should have realized that the road to tea isn’t as bright as they thought.Nai Xue announced on March 17 that the price of its tea products will be reduced by 10 yuan. Meanwhile, nai Xue launched the “Easy” series, featuring “super value and good drink”, with the price between 9 and 19 yuan.This is after the late February Xi Tea price reduction, another tea drink head brand announced price reduction push new.As the two giants cut prices to seek new consumer groups, Le Le tea was forced to join the price war.In this regard, some have analyzed that the penetration of top brands into the low price range of 1 and single-digit unit price reveals the true side of the brutal competition in the tea market.From the perspective of pricing, the current pattern of tea market may be the most clear: within 10 yuan, Michelle Ice City has opened more than 20,000 stores nationwide, which is the only one existing.In the 10-25 yuan range, the brand competition is fierce, there are more than 7,000 stores of books and baked xiancao, more than 5,000 stores of ancient tea and tea, three or four thousand stores of CoCo can, a little bit, there are also from Changsha Internet celebrity upstart tea Yan Yue se.In the price of more than 20 yuan, Xi Tea, Nai Snow two major brands, the number of stores have nearly a thousand.It is clear that the tea market has become extremely introverted.Under white-hot competition, the growth rate of the whole market is gradually slowing down.According to the 2021 New Tea Drink Research Report released by China Chain Store and Franchise Association, the growth rate of new tea drink will slow down to 10%-15% in the next 2-3 years.”The tea market is facing high costs, slowing growth and other problems, and has entered the stage of ‘deep stock game’. The industry is in urgent need of finding new growth points.”Zhai Bin said.In such an environment, most of wahaha’s outsiders have not yet come out of the fast selling market and have not formed the ideas needed for catering, which will undoubtedly make their exploration in the tea circuit lag behind, and immature products and operations may make them face the dilemma of being eliminated from the competition.