With tens of billions of market penetration space, Xixiaocha has more possibilities.
One year after its debut, Xixiaocha has “small achievements”.
This sub-brand, launched by the pioneer of the new tea industry, Xicha, has attracted a lot of attention and discussion in the industry in the past year. Since it started from Shenzhen Letaoli store on April 3 last year, as of the beginning of April this year, Xixiaocha has opened 22 stores in 6 cities including Shenzhen, Guangzhou, Dongguan, Zhongshan, Foshan, and Huizhou, becoming a Xitea business. A vital force in the innovation process.
Not only is the rapid expansion, the “report card” of Xixiaocha’s store management is also remarkable:
According to the “Xixiaocha First Anniversary Report” released on May 19, Since its opening one year, Xixiaocha has sold more than 2.8 million drinks, and this is still less than half a year after opening in most stores. in the case of. Not only that, on November 29 last year, Xixiaocha’s Guangzhou Chengtou Building store created a sales record of nearly 60,000 yuan in a single day. In the following December, the store exceeded 800,000 yuan in sales in a single month, with an average daily sales volume of over 2,000 cups.
Xixiaocha’s wide acclaim is derived from the store’s many celebrity single products: Yangzhi Ganlu Jade, Original Douhua Shuangpin, Tender Grass Grand Slam and other three products, which have dominated the list for the entire year. The sales volume of Lexi Xiaocha is the top three.
This is just a microcosm of the launch of Xixiaocha products in the new year. At the beginning of its establishment, Xixiaocha launched a total of 20 products covering three categories: milk tea, bean flower tea, and fruit tea. Today, it has expanded to original cake milk tea, original bean curd milk tea,There are 28 products in five series including fruit tea, Qingyou Xueding tea and milk tea.
Judging from the exploration of the past year, the new brand born from Hi Tea has now its own product line, and the store operation effect has also reached the forefront of the industry. And their secret to do all this in a short time may be hidden in a set of “Hi Tea OS” system.
Behind the high quality of Xixiaocha
Product and supply chain complement each other
At the beginning of its birth, Xixiaocha completely inherited the ultimate productism concept of Xicha, which is mainly reflected in the insistence on using high-quality natural raw materials, including tea base, pure milk, small ingredients and other all-real materials.
Different from the traditional industry using tea powder, tea dregs or ordinary tea leaves to make base tea, Xixiaocha chooses four types of tea: Hongyun, Luoying Oolong, Xiaohongpao and Cuiyu as the original tea base, In the past year, nearly 100,000 high-quality boxes of pure milk have been consumed. In addition, Xixiaocha also selected more than ten kinds of snacks including highland barley, cake sauce, oreo chopped and peanut chopped.
Under the premise of ensuring product quality, the price band of Xixiaocha products is positioned below 20 yuan, and the product has a significant sense of value. Good quality is an important reference standard for consumers to purchase a cup of tea. The results of a consumer survey in Sullivan’s “2020 New Tea Industry Development White Paper” (hereinafter referred to as the “White Paper”) show that as many as 71% Consumers will take product quality as a consideration when purchasing new tea products. The new generation of post-90s and post-00s consumers are more sensitive to prices.
This product positioning has enabled Xixiaocha to successfully gain the unanimous recognition of younger groups, and it also enables Xixiaocha to have a strong penetration ability among younger groups. According to the “Xiaxiaocha First Anniversary Report”, As of the end of 2020, the post-90s consumers of Xixiaocha accounted for about 22%, the post-95 consumers accounted for about 39%, and the post-00Consumers account for about 22%. Among them, the proportion of post-95s and post-00s consumers (61%) is higher than the proportion of consumers in the same age group of Hey Tea (49.2%), and the development potential of the overall consumer population cannot be underestimated.
In addition, Xixiaocha’s consumer praise rate has long led the public comment tea category hot list for a long time, and many consumers gave “favorable taste”, “large portion”, “good service”, and “exquisite decoration”. “And many other evaluations. In other words, even if it is less than 20 yuan, it is not only an option that traditional tea shops usually use creamer powder blending. The reason why the product quality with the same price can be optimized is due to the accumulation of supply chain resources in the early stage of Hey Tea. It is reported that the same raw materials, Xicha and Xixiaocha use the same product from the same supplier.
In the list of Xixiaocha’s suppliers, there are international suppliers that supply raw materials for McDonald’s and Starbucks, as well as medium-sized suppliers that have the ability to do reverse customization for the raw materials of Xicha/Xixiaocha, as well as A new supplier developed with the new tea. The balance and development of these large, medium and small suppliers are the basic source of guarantee for the product quality and bargaining advantages of Xixiaocha.
The digital construction of Xicha has also penetrated into the entire supply chain system, providing a basic guarantee for product innovation. It is reported that as early as 2017, Hey Tea launched the EPR system, starting from the raw material quality control stage, optimizing the entire standard operation of procurement, inventory, and distribution management. At the same time, it will also assist in new product research and development decisions based on consumer data, carry out online marketing with thousands of people, and flexible inventory marketing and control.
At the same time, HeyTea established a food safety committee internally earlier to create a full-chain food safety management system. In terms of food safety management in stores, Hey Tea also specially deployed a 70-person food safety management team, and uniquely configured a “food safety commissioner” to systematically guarantee the high quality of drinks.
Look at Xixiaocha from site selection and operation
Reach a wider range of consumer groups
In the past year, Xixiaocha has summed up a set of store operation system that operates in a healthy manner under the entire Xicha ecology through practice.
From the dimension of store landing, we can have a more intuitive understanding: Guangzhou and Shenzhen are the base camps of Xixiaocha. According to the statistics of the report, in the past year, among the 22 stores that Xixiaocha has opened, there are 15 stores in Guangzhou and Shenzhen, accounting for more than 68%. The remaining stores are located in Dongguan, First- and second-tier cities such as Foshan, Zhongshan, and Huizhou.
The common feature of these cities is that in the same province, the tea drinking culture is mature and similar, and the city’s commercial facilities are complete and relatively concentrated. More importantly, Xicha also has stores of corresponding scale in these cities, and Xixiaocha can have a closer linkage with Xixiaocha in terms of supply chain and store operation.
Xixiaocha is still very young, and the polishing of the store is still one of the necessary tasks at present. In terms of store format, Xixiaocha has made explorations in many directions, including landing in shopping malls, street shops and scenic spots.
There will be subtle differences in the landing of specific stores. For example, the first store in Shenzhen Letaoli is a typical mall property store type of Xixiaocha. It is located in the Huaqiangbei area with dense traffic and is located along the exit of the subway. As the first store in Guangzhou, the Xixiaocha Chengtou Building Store is closer to the Beijing Road business district, subway entrances, and the old residential area, making it more “lifestyle”.
The pertinence of this location selection is reflected in the different user portraits of the two stores. Shenzhen Letaoli store’s customer base is mostly young people, including fans and regulars from nearby business districts; Guangzhou Chengtou store’s customer base is more diversified, including tourists, fans, passersby, and Old man and child. The diversified setting of scenes allows Xixiaocha to reach a wide range of target consumer groups more quickly.
At the same time, with the help of new forms of digital operations, a more flexible and efficient ordering experience can be guaranteed. This is also the unique advantage given by Hi Tea. According to the “White Paper”, online consumption has become a new consumption habit of young Chinese consumers. Today, with the high popularity of mobile Internet, online ordering has become the “standard configuration” of the industry, and HiTea is at the forefront of the industry in this regard. The young Xixiaocha has a “sophisticated” application to digitalization: At present, more than 710,000 users have used the Xixiaocha WeChat applet. Among consumers who order online, 68% choose to pick it up at the store, and 32% choose takeaway delivery.
Compared with Xicha, Xixiaocha also has a higher proportion of takeaway orders. For Xixiaocha, which has a smaller store area and the main form of take-out, this performance means that to a certain extent, it means its Efficiency and operational efficiency have great potential.
This is a gradual exploration process, and the support of Hey Cha is an important start. Shenzhen Letaoli store is the rudimentary form of the operation style of Xixiaocha store. At first, it basically followed the training process of Xicha. At that time, employees were recruited from the original Xicha system for training. After groping from 0 to 1, when preparing for the second store, the Xixiaocha team can already conduct training one month in advance based on the summarized experience.
With the gradual expansion of subsequent store scales, Xixiaocha’s own unique store operating style has gradually taken shape, including optimization of material distribution, oral broadcast, and the brand’s own style characteristics. From the past ” “Welcome to Xixiaocha” to “Haocha real milk is fresh and not greasy”, and gradually began to explore the range of store order thresholds.
Conversely, this flexible exploration has also “unlocked” some drinking methods and product categories full of high-quality experiences, and product packaging details, equipment and other ideas or creativity can also provide more for HiTea Reference.
Ten billions of market penetration space
There are more possibilities for Xixiaocha
2012 is considered to be the first year of the development of China’s new tea market. However, this market is showing a trend of rapid growth. The data in the “White Paper” shows that 2015-2019 has a high compound annual growth rateIt will reach 280%, and the compound annual growth rate from 2019 to 2025 will also reach 30%. There is still tens of billions of market space to be penetrated in the future.
New market prospects are giving birth to new industry opportunities, including on January 15, 2021, the official website of the Ministry of Human Resources and Social Security issued the “Announcement on the Proposed Publication of Professional Information for Integrated Circuit Engineers and Technicians.” , A number of professional certifications have been added to the announcement, including the new profession of “Mixer”.
Currently, the number of tea blenders on duty has exceeded 10,000, and the post-95s are mainly distributed in various stores across the country. This aspect reflects the advantages of Heytea’s industry scale. The deeper reason is that Heytea’s stricter SOP and higher standard store operation system.
This is also part of the exclusive “HiTea OS”: as the most important precipitation of HiTea in the past nine years, this system extends the pursuit of ultimate products, digital technology applications, store operations, supply chain resource precipitation, and talent training, etc. The ability to systematize, on the one hand, ensures the rapid spread of Hey Tea across the country, on the other hand, it also ensures the consistency of consumer experience and brand image.
At the same time, the innovative case of Xixiaocha is also sufficient to prove the maturity of this system.
Under the wave of consumption upgrades, the new generation of consumers is paying more attention to more Chinese brands. The rich brand culture also brings more consumer identity and sense of belonging to brands. New tea drinks may be one of the tracks that benefit significantly. High-quality, strong digital experience, and interesting social content and scenarios have become an important application exploration direction for the new tea market.
Hey tea is a prominent presence in the top brand of new tea drinks. A survey conducted by Sullivan on consumers’ “favorite freshly made tea brands” shows that among the popular new tea brands, as many as 32% of consumers mentioned Hey Tea, which is far more than Other new tea brands.
From the perspective of consumer preference in the past year, through the application of “Xiacha OS”, Xiaxiaocha has proved to the tea market the possible new height of tea products below RMB 20. And then, this market may have more categories and surprises worth exploring.
The full text of “Xixiaocha First Anniversary Report” is attached below:
