The capital battle in the 100 billion tea drink market: the ultimate competitor is Ruixing?

Pan Pan has always had a hunch that there would be a Starbucks-like international brand in China, and in the middle of last year he told the media, "This brand must be different from Starbucks. It's going to be a product that combines Chinese culture, and tea is a good vehicle for that." Pan Pan is the managing partner of Tiantu Investment, and has been following the turnover of the tea beverage market since he invested in Eight Horse Tea.

This hunch is not empty. 210 million takeaway orders a year, sales are much higher than coffee, and the business of pop-up tea drink stores is even hard to find a cup. This is a far larger market than coffee, and can be wireless to expand the sinking space, according to the estimated data of the China Business Industry Research Institute, the market size of the freshly made new Chinese tea drinks is close to 100 billion yuan.

Capital is also pouring into this market.CV Sourse disclosed data showing that since 2018 so far, there have been 15 financing events for new Chinese tea drink brands alone, and valuations are often on the order of billions of yuan. "This is a very fierce industry, and there are still a lot of dividends," Zhang Yeqiu, vice president of investment at Zonghai Investment, told Investing.com.

Capital boosted, the giant will also be produced, coffee and tea drinks, the two solutions quite close to the needs of the carrier of the beverage, will eventually in the "lifestyle services" in the field of the short war.

The reason why the original investment in Lele Tea, Zhonghai Investment also valued its multi-category multi-SKU expansion ability. "Lele Tea from the early days of the soft buns, fresh fruit cheese, ice cream and new tea drinks, and each category of SKU can do very well, which is very important for the investment of this track, because it is not difficult to expand the SKU of a single category, the difficulty is to expand the category. If you focus on a single popular product SKU products to hit the explosion, the brand's life cycle will decline with the life cycle of a single SKU, only multi-category multi-SKU success is close to the lifestyle builder, penetrate more user scenarios and needs," Zhang Yeqiu said. Pan Pan also told InvestmentNews that he invested in Nachel's Tea as a "lifestyle" project.

This intersection of competition is even reflected in the fight for the takeaway market. With reference to the data that "76% of freshly ground coffee consumption is dependent on takeaway", Ruixing Coffee simply put down the offline market, through the first cup of free subsidies to capture users, even if the user goes to the store to order, but also only through the online program to order, so as to complete the transfer of users to the line. At the same time, almost all of the head of the new Chinese tea drink brands have developed their own small program, and in the takeaway platform for user penetration, the difference is that the customer base from the offline spontaneous transfer to the line, reflecting the advantages of the product and brand premium, but also more than Ruixing the function of a store experience.