Shut it all down! Xi Cha gave up.

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According to media reports, the last store of Xi Chazi brand Xi Xiaocha in Guangzhou Chengtu Building has been closed, and it has been only two and a half years since it opened. Mini Program, which likes Xiaocha, can no longer be searched, and official account's last tweet was posted on July 20, 2022. So far, Xicha officials have not responded to this.

Xi Xiaocha, a sub-brand of Xi Tea, has been ploughing the Pearl River Delta market, opening 22 stores in Shenzhen, Guangzhou, Dongguan, Zhongshan, Foshan and Huizhou. Xi Xiaocha store is small, and the space for customers to order and pick up goods is only about 3-5 square meters. Most of the locations are located in the general area of Huaqiang North, but they mainly focus on the business circle of affordable consumption. Focus on buy-and-go mode and takeout business, focusing on online ordering, self-pick-up or delivery mode.

In April 2020, Xi Xiaocha opened its first shop in Huaqiang Plaza, Huaqiang North Road, Futian District, Shenzhen City, Guangdong Province. the price of each product was between 8 yuan and 16 yuan, which was equivalent to half of the price of Xi tea at that time. In the following months, Xi Xiaocha gradually spread to more cities in Guangdong, including fresh milk tea, fruit tea, coffee, ice cream and pure tea. Including soy milk, fruit, etc.

According to the first Anniversary report on Xixiaoca released in 2021, Xixiaoca has sold more than 2.8 million cups of drinks since its opening year. At its peak, Xixiaoca has more than 20 stores. It is reported that the vast majority of Xi Xiaocha stores remain profitable until the shop is closed.

At the beginning of this year, Happy Tea entered the hot search list of Weibo with "30 yuan for happy tea" and announced price cuts for some products, including 3-5 yuan for pure tea, 2-3 yuan for five types of fruit tea and 1 yuan for cheese tea. On February 24, Xi Tea announced that it would no longer launch drinks worth more than 29 yuan this year, and promised not to increase the price of existing products. It was further announced that all the new products were priced at no more than 20 yuan.

There has been no big difference in product standards between Xi tea and Xi Xiao tea. Xi Xiao tea uses "real tea and real milk", and Xi Xiao tea also insists on "real materials", so it is difficult to further reduce the cost. In the face of the price reduction adjustment driven by the main brand, Xi Xiaocha is also keeping up with the pace, price adjustment, and promised to launch drinks within this year no more than 15 yuan, the two brands are gradually similar in terms of product positioning and pricing.

It is understood that behind the price reduction of Xi tea, like Xiaoca, we want more consumers to enjoy products of high quality and low price, customize small materials according to their preferences, choose specifications, and enjoy different prices. The development trend of new tea is also increasingly fierce, Xi tea in this case to reduce the price, or in order to seize a wider range of consumer groups, to achieve the purpose of small profits and quick turnover.

According to the report, younger people who like small tea are also more popular with the same young consumer groups, with 61 percent of consumers in the same age group, compared with 49.2 percent of post-95 and post-00 consumers who like tea. The post-90s consumers of Xi Xiaocha account for about 22%, the post-1995 consumers account for about 39%, and the post-00 consumers account for about 22%. The overall consumer population has this great potential in society.

When the main brand and sub-brand attack the same market in the same way, Xi Xiaocha may have accomplished the task and quit. It may also be the price reduction strategy of Xi Xiao tea, which forms a direct conflict with the price belt of Xi Xiao tea, and becomes one of the reasons of Xi Xiao tea pass shop.

Photo Source: Internet

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