Partners spend money to buy peace of mind, but also have to spend 18 months.
Little deer tea “solo”. The Ruixun coffee, which landed on Nasdaq in less than two years, took less than five months this time. Tell a new story with Xiaolu Tea.
On September 3, Ruixun Coffee officially announced the independent operation of its sub-brand “Xiaolu Tea”. For this purpose, it launched independent apps, small programs and offline stores, and signed Xiaozhan as the spokesperson of Xiaolu Tea brand. The deer tea shop is mainly located in the second, third and fourth tier cities, focusing on the consumption sinking and the main leisure scene. It complements the main battlefield of Ruixing Coffee, which is the main battlefield of the first and second tier cities and office scenes.
Rui Xun launched the new retail operation partner model for Xiaolu Tea, and once again, the number of stores has increased. Liu Xing, chief operating officer of Ruixing, said that he still feels that the speed of opening a store is not fast. He receives feedback every day that there is no store around xx. The new new retail partner model is launched to make the store The expansion is faster.
To expand, to be independent, and to sink, can the new story of Xiaolu Tea make sense?
Go to the sinking market to do net red, Xiaolu tea can’t sell expensive
New teas are on fire, and consumers in first-tier cities are keen to chase the “flows” of the tea industryXi tea and Nai Xue の tea, but the sinking market is active with Jin Shangxi tea, joy tea, and hi tea. Waiting for the cottage brand.
In order to keep up with the consumption of tea consumption in low-tier cities, and to hit the cottage brand by the way, it was previously claimed that the core business district of the first-tier cities is the tea of the expansion and the tea of Nai Xue, and began to open the store to the second and third tier cities. . As a result, Guizhou, Jiangxi and other central provinces have hi tea, Nanning, Xuzhou, Shijiazhuang and other areas have Nai Xue の tea.
Little deer tea went straight to the sinking strategy, and opened the store to the second, third and fourth tier cities. The way of ordering online transactions did not give the cottage brand a chance to breed too much. But the reason why sinking is more important is that Ruixing, who is struggling with Starbucks, is exploring a more economical and rapid store expansion plan, and the sinking market just has a strong demand for new tea.
According to the “2019 China Beverage Industry Trend Development Report” released by the US Mission Review, the second quarter of 2018 compared with the same period of last year, the first-tier city tea shop closed shop rate is twice the opening rate, up to 55%. In addition, first-tier cities grew by 59% in less than low-tier cities in two years, second-tier cities grew by 120% two years ago, and third-tier cities and below grew by 138%, becoming the blue-sea market for new-style teas.
Chart Source: Ruixun Coffee
The pain point of the low-line tea market is that apart from the representative brands in Shanghai, such as aunts and teas, there is still a brand that can “sink down”. The price of Xicha and Naiyue tea single cups is more than 25 yuan, which is easy for the low-line city consumers to be price sensitive; honey snow ice city, COCO can be sold a little to 10 Up and down, but the “low price” brand label lacks some qualities that can be actively spread by consumers. Too much emphasis on cost performance is not sexy enough; in contrast, those street shops are more bleak and have a lot of operations. And management issues.
From hi tea, Nai snow の tea, to 楽楽 tea, antler lane, answer tea, the rise of new style tea is inseparable from the same trait – net red, they have their own brand characteristics, Fine production, high value of tea, and strong spreadability, in essence, is the flow business. Rui Xun Xiaolu Tea also wants to take the traffic route. According to official data, the exposure of Xiaolu Tea in social media has accumulated more than 1 billion times. In order to maintain high exposure, Xiaolu Tea invited the popular star Xiao Sha to be the brand spokesperson. .
In a tea brand, Xiaolu tea looks quite eye-catching: it has a black tea tonality, and the single cup is priced at around 27 yuan, which is the same as Xicha and Nai Xue, but under radical subsidy measures, You can buy a cup from the jacquard for a dozen yuan. This creates a consumer experience for the sinking market. It’s an unprecedented experience to spend a little bit of money and have a cup of tea.
It is foreseeable that using this strategy to occupy the sinking market will have obvious effects and greater risks. Price is a sensitive point that consumers in low-line cities can’t get around. Once Ruixing restores the original price, it is a price increase for consumers, and it is doubled up. It is easy for consumers to form a huge psychological gap, leading to Ruixing. Lost your work. Therefore, to gain a firm foothold in the sinking market, Xiaolu Tea can not be sold expensive, and it is necessary to maintain the subsidy price for a long time and even re-pricing.
After independence from Ruixing Coffee, Xiaolu Tea can have more initiative in pricing strategy, and there is no need to worry too much about lowering the main brand tonality. So new questions come, how does the cost go down?
Reducing costs and expanding stores, Xiaolu Tea also needs a “compromise” program
YesFor companies that are too costly and need rapid expansion, it is a sensible story to make a large-scale effect to form a scale effect. This story line is equally applicable to Ruisheng. Even if the opening speed has surprised the industry, Rui Xing still feels that he is not fast enough, so he launched for the deer tea new retail operation partner mode, to sink The market is alive and well.
This is an important step in the new tea world. A new tea brand is under the management of the franchise modeloose, product quality is uneven, Insufficient chain management capabilities, have been directly used as selling points and gimmicks, and slowly expanded under financial pressure, which led to the industry’s own stores and more than 500 brands. No. Official data shows,As of the end of 2018, the total number of Xicha stores reached 163; as of March 2018, several hundred million A+ rounds of financing were completed,Nai Xue’s tea has 40 stores in Shenzhen and 50 stores across the country.
The new retail operation partner model of Xiaolu Tea claims zero franchise fee. The partner store will not be drawn before the break-even is realized. After the profit, the partner will be made a certain proportion, and the new customer will receive the first subsidy cost. Committed by Xiaolu Tea. But it is still the franchise mode after the beautification, the purpose is to transfer the cost of opening a store and ease the pressure on funds.
Specific to the details of the cooperation, Little Deer Tea will store rent, store staff, material costs, amortization and other costs are transferred to the partners, in the latest quarterly earnings, these costs accounted for Nearly 60% of the overall operating costs. Xiaolu Tea is responsible for brand marketing, new promotion, digital operation system development iteration, supply chain management and other operational links.
In addition, the new retail partners can view the store operation data of store turnover, order quantity, inventory, etc. in real time, realizing the opening of raw materials, warehousing, logistics and store data; AI intelligent camera monitoring with face and product identification The system assists partners in improving store management efficiency. Compared with the franchise mode of drought and flood protection and transfer of business pressure to franchisees, Xiaolu Tea’s partners can save a lot of heart.
For Xiaolu Tea itself, this is a more “compromise” scheme, which is lower than the self-operated cost, higher than the cost of joining, and the store is controllable and will not break.