The tea market is about to be monopolized by chain brands. There are 15 tea shops on a street, maybe 13 of them are chain brands, and there are only 2 independent self-owned brands. This is gradually becoming the norm in many places.

Chain brands are opening more and more, occupying more positions and human resources, grabbing consumers' attention, and independent brands' living space is being squeezed.

How to overcome the increasingly cruel competition situation?

ONE

Tea drinking "oligarch era" has really come

Qu Hehe's tea shop opened in a small city in Sichuan.

A few days ago, he suddenly discovered that the two independent brand tea shops next door had been transferred, one was transferred to Michelle Ice City, and the other was transferred to Gu Ming.

A few years ago, there were more than a dozen tea shops on the whole street, but now there are fewer than 10. Among all these stores, only Qu Hehe himself is left in his own self-made stores, and the others are franchised stores such as Book and Burning Immortal Grass, Tea Hundred Dao, King of Soldiers, Michelle Ice City, Guming, and Chayu.

The owner of the shop next door sometimes joked that “Chengdu Tea Drink F4” has finally been gathered in this street, referring to the 4 chain brands that have more stores in Chengdu-Shu Yi Shao Xian Cao, Tea Bai Dao, Gu Ming, Michelle Ice City.

In fact, in many regions of the country, such a situation of "tea drinking F6, F8, F10" is emerging.

On a pedestrian street in the city, in a county town, 70% of the tea shops are Michelle Bingcheng, Gu Ming, a little bit, CoCo, Book also burns immortal grass, Tea Baidao, Shanghai Auntie, Yihetang For large-scale chain brand stores, 20% are regional chain brands, while independent self-owned brands account for less and less.

Even in many northern second- and third-tier cities, it is obvious that there are Heycha and Naixue in the shopping malls, and the snack street outside the shopping malls is Michelle Ice City, and CoCo. brand.

It can be said that the tea industry is entering the "oligarch era".

"Oligarchy" is an economic term that describes a situation where a few manufacturers control the products of the entire market, and it means monopoly.

The current new tea drinks are also entering a state where several chain brands occupy more markets and have more resources.

Market competition has become a PK between regional brands and national brands, and a "head-to-head" between top chain brands, and the stock of independent small brands is becoming less and less.

TWO

Chain brands use resources to crush

Is it hard to grow grass under the big tree?

The biggest threat to independent brands is that chain brand stores use resources to crush market opportunities and consumers' minds.

First of all, for the same cup of strawberry drink, the taste difference between independent stores and chain brands will not be particularly obvious, but the cost difference is very large.

Chain brands can obtain better raw materials at the same cost through large-scale procurement, or the same raw materials can have a lower price advantage.

Secondly, when consumers buy a cup of milk tea, they are not only buying a cup of products, but also the added value of the brand, interactive gameplay, and punch-in functions.

Through unified planning and management, chain brands explore popular elements that young people like and use more beautiful packaging, which will become more attractive to consumers at the same price.

"The same product sells 18 yuan/cup. Tea Baidao is cooperating with Dunhuang, and can take pictures and send it to Moments. Our family’s 18 yuan is a drink, and the gap is considerable. Chain brands can use many activities to make young people agree. , And what value can my unknown brand provide?" An independent store owner told me.

The high-density layout of chain brands occupies more space and has more exposure, so that consumers can see it frequently in one area, and their inner trust will be higher.

In addition, why do we like to order McDonald's at high-speed rail stations and airports? Chain brands will also be more professional in terms of hygiene, cleanliness, and image output.

As a result, a customer who orders a chain brand in his hometown and goes to a new place will still tend to choose a chain brand. The formation of this habitual cognition is the core consumer asset of a chain brand.

For example, some people in the industry have revealed that even in Xiamen and other places where independent specialty stores have emerged, the popularity and sales of Guming in the local area can still achieve a leading position.

Furthermore, chain brands have more advantages in mobilizing resources. Offline is more popular in shopping malls, and if you get a good position, new forms of platforms such as takeaways and small programs will give more resources and attention to chains.

Even in the recruitment process, the salary of the job, the decentness of the job, and the foreseeable promotion space, the chain brand will be more attractive.

This is the natural advantage of chain brands, and all industries will go through this process of being integrated. The current tea industry is going through this stage.

THREE

The monopoly situation is still going down

Chain brands are still racing more quickly.

In terms of capital, in addition to the direct brands known in the market such as Xicha, Naixue, and Chayanyuese, they have obtained financing. Before the end of 2020, franchised brands such as Gu Ming, 7 Fen Tian, Hushang Ayi have also announced that they have received large investments.

Recently, searching for related news such as "tea drink listing", the discussion about the first share of new tea drink has also been extremely intense. Who will lead the listing has become a topic of more concern than getting financing.

Perhaps, the market is also looking forward to the capital result of a new tea drink.

In terms of market occupation, chain brands are also developing in a rolling manner. At the end of 2018, there were a total of 163 Xicha stores; by the end of 2019, there were a total of 390; as of December 31, 2020, this number has reached 695, which is close to a doubling of the growth rate. In terms of brands that are positioned more universally, opening more than 1,000 brands a year can be achieved.

Sinking markets and remote cities have become the last hotspots and become the focus of the current chain brand layout.

In the second half of 2020, Qitaihe City, Heilongjiang, opened three Michelle Ice City in one go, and the layout of the chain brand has reached the northernmost town.

This year, Michelle Ice City has achieved the scale of 10,000 stores in the tea industry. At the same time, there are no less than 10 tea brands with more than 3,000 stores.

Most of these brands have a cost-effective advantage. The average product price is around 15 yuan, which is in line with the consumption level of the sinking market. They are all bringing large stores, image stores, and higher-quality products to the county to open stores.

This situation will inevitably have an impact on local self-owned brands.

In some regional markets, franchise stores of the same chain brand are opening closer and closer. In order to ensure the profitability of franchise stores, chain brands usually have protection policies, such as not opening multiple stores within 3 kilometers of the same brand.

As more and more stores open, this situation is being broken, and competition and risks among franchised stores have become obvious.

Are many chain stores on a street profitable? According to people familiar with the matter, the main determinant is still related to the location of the store. There are also related factors such as the length of opening, the activity of store marketing, and the effort and diligence of franchisees.

"On our street, Shu Yi Shao Xian Cao opened its doors first and occupies the best position. Consumer awareness has always been there, and the overall effect is good. Tea Island is the first to open takeaways. They have a good online business. Recently, we have been upgrading, and it has also attracted a wave of consumers." The insider said.

FOUR

Pressure from external markets is also increasing

The external test facing the tea market is also increasing.

This year, reports of food safety inspections in tea shops occurred from time to time. The news of the change of top tea brand executives will also arouse the attention of social media.

This may reflect that the requirements of the government, society, and ordinary consumers on tea shops are gradually increasing.

Under such circumstances, how to reduce or avoid risks through operational control? How to deal with and respond professionally and effectively in the face of crises is becoming urgent.

Chain brands may have room for adjustment, and self-owned brands can easily be fatal.

In fact, from grassroots stores to professionally matched executive talents, the stability of the development of chain brands and the construction of talents also have needs and problems.

The future of the layout is the construction of the supply chain and platform. The tea shop sells a cup of products, but when the chain of brands develops, the differences and strengths between brands have been minimal in products.

When the market puts forward a higher-dimensional demand for the tea industry, the living space of small and medium-sized brands is even narrower.

FIVE

PK chain stores can only take root in the gap

The self-made brand must be competitive, and it will test the boss's personal ability and quality, such as keen insight into consumer needs and control over market opportunities.

Judging from the recent experience of Khu Hehe, some self-made brands are overly entangled in product freshness and obsessed with taste, which is basically tantamount to "suicide".

“Don’t take how good you are and how much better you drink than big brands as a competitive advantage and talk about it, because few consumers drink the difference, and the blind pursuit of freshness and product innovation will only increase their costs and control quality. Complicated, and then lost a large number of customers."

His current approach is to export the explicit value of the brand while maintaining the advantage of the raw materials of the product.

For example, the recently launched wall-mounted milk tea creates a sense of starry sky, adding tea jelly to increase the richness of the small ingredients; sticking stickers on the cups makes the tricks more changeable.

By exporting a maverick brand style, you can pragmatically grasp the customers in the community and office building where your store is located, and there is room for serving the target customer group well.

Similarly, when playing a glass brand in Hangzhou, the boss is very good at discovering new product trends on social media. She always catches them quickly and launches them in her store to attract customers. In addition, she also stably operated the WeChat Moments of 2 mobile phones, and formed high-frequency interactions with familiar customers.

It can be said that to seize the two people who can directly see the brand value, good service and coverage, form a stable consumer group, maintain the flexibility characteristics of independent brands, and give full play to the advantages of human touch. It is a feasible way to create a brand.

The arrival of the oligarchy era means that the competitive environment has intensified.

Under such circumstances, whether a chain or a self-made brand, the only thing that can be done is to keep up with market changes, do the right thing, and travel through every trend.