Xi Cha announced that it will not increase the price this year and will no longer launch drinks of more than 30 yuan. Xi Cha related companies have added new fruit planting in their business scope.

New tea brands have sprung up everywhere in Chinese mainland, including pleasant tea in Changsha, Xi Tea and Nai Xue in Shenzhen, Honey Snow Ice City in Zhengzhou, Lele Tea in Shanghai and so on. Each brand of new tea has its own characteristics, but there are similarities in the products. The similarity is that almost all new tea products contain fruit ingredients.

Some brands go to the end on the way to reduce costs. According to the Beijing Business Daily on February 23, recently, Shenzhen Maigo Technology Co., Ltd. has undergone industrial and commercial changes, and the scope of business has increased the planting of fruits. The company was established in January 2019, the legal representative Liu Zhichao, registered capital of 300000 yuan, by Xicha (Shenzhen) Enterprise Management Co., Ltd. indirect wholly-owned control.

Since Nai Xue's tea launched the "domineering jade mandarin" drink and quickly became popular, the new tea has gone further and further on the road of digging for different kinds of fruits. Due to the need to invest a lot of fruit in the production process, in order to reduce costs and control quality, some new tea brands have set their sights on a more upstream industry, that is, the cultivation of raw materials.

There is a precedent before. The "Snow King" who successfully brainwashed many workers by saying "you love me, I love you, honey" set up an agricultural company at the end of August 2021.

At the beginning of 2022, when the prices of many new tea brands rose one after another, Xi Tea dared to be the "rebellion" of the new tea drink, not rising but falling. Although it has received a lot of praise, it has also attracted questions. Some skeptical netizens said how high the profit margin of the new tea should be.

During the Chinese New year, there was news that 30% of Xi Cha's employees had been laid off. There are also reports on the Internet that some employees of Xicha have revealed that the year-end bonus of Xicha is only 188 yuan, in addition to being harsh on employees. Xi Cha gives an explanation for this: internal optimization and adjustment. What's more, the internal staff of Xi Tea revealed that the phenomenon of ganging between the senior management team within Xi Tea is serious, the internal management is chaotic, and the staff mobility is large.

From the happy tea in the last two years, we have invested in many brands about new tea or coffee, such as SEESAW COFFEE, Yoyama extract and so on. While the development of offline stores of the Xi Tea brand itself, the speed of opening stores has slowed down significantly. By the end of 2021, the number of stores under Xi Tea was 865, with a net increase of 170 stores. This number is 135 fewer than in 2020.

The new tea drinks are now highly homogenized. In similar product types, they are eager to "blend in" with young people, but they frequently turn over in the process of "blending".

Just reducing the price can no longer allow consumers to experience the good intentions of tea-loving, and there are no more drinks with the beginning of three words on the standard tea menu. On the afternoon of February 24, Xi Tea announced that it would no longer raise prices this year, and that it would no longer launch products worth more than 29 yuan this year.

It is no longer enough for the "rebellious son" of the industry to absorb a wave of fans with the help of "price reduction". If we can avoid raising the price, we will be happier, but now the rising cost forces Xicha to try its best to reduce the cost burden. And agricultural planting is one of the controllable ones.

It's like brewing coffee at the end of drinking coffee, roasting coffee at the end of coffee making, and planting at the end of roasting. If you want the quality of raw materials to be controllable and the price to be low, you have to plant them yourself. The raw material of taro mud wave series is a good example.

Photo Source: Internet

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