370 new brands were added in 180 days, and lemon tea turned into an internet celebrity

Can lemon tea, which is popular in summer, survive into winter?

At the moment when Naixue ’s tea rushed to the market and Hey Tea and Michelle Ice City were their respective kings, most people believed that the new tea industry’s “three-legged” pattern had been set, but ” a dark horse ” suddenly came out-this is it. Popular hand-made lemon tea this summer. Driven by the concept of “hand fight”, lemon tea has become an Internet celebrity drink that many young people are vying to try.

On the other side, new players quickly entered the game. “The data we got shows that in Shanghai alone, there were more than 370 new lemon tea brands in the first half of the year. This does not include the existing lemon tea chain brands.” The tea drink chain brand ” Guiyuanpu ” brand The person in charge said to ” the front line of entrepreneurship “.

The profit margin of lemon tea also makes the entrants crazy. A franchisee said that one of their stores, with a total investment of 126,000 yuan, opened for 5 days and had sales of 67,000 yuan. According to this calculation, the cost will be paid back in less than half a month.

The emergence of lemon tea has allowed new tea drinkers to see a new possibility. However, the threshold for lemon tea is not high. How can new players differentiate? Lemon tea is more suitable for cold drinks. After summer, how can the main lemon tea brands maintain their vitality?

At the same time as the rapid expansion, there are also questions to be solved before the players.

1. Lemon tea “turns over”

It is estimated that many people did not expect that this summer, the once mediocre lemon tea, coupled with the concept of “hand-made”, turned into an Internet celebrity in the beverage industry.

Hand-made male lemon green tea, duck feces bergamot tea, and bitter gourd lemon tea that combines bitter gourd and lemon… These ingenious new teas have been spread on major social platforms .

The so-called hand beating is to manually beat the lemon out of juice. Some hand-made lemon teas use perfumed lemons. This lemon has a thick skin and a fragrance. Beating it can increase its fragrance. At the same time, the process of making hand-made lemon tea is also “ornamental”, and this fresh experience has also promoted its outreach.

As a result, driven by the concept of “hand-beating”, the inconspicuous lemon tea in the past was able to stand up. This sub-industry was suddenly pushed to the public , and even the track became huge.

“The data we got shows that in Shanghai alone, there were more than 370 new lemon tea brands in the first half of the year. This does not include the existing lemon tea chain brands.” The tea drink chain brand “Guiyuanpu” brand The person in charge said to the “frontline of entrepreneurship”.

Among the many new brands, “Ling Ji” established in Changsha is well-known and has a rapid development momentum. In February of this year, Ningji’s first store opened in Changsha, and the number of stores currently exceeds 140. Even head brands such as Hey Tea and Lele Tea have launched new categories of lemon tea.

The battle for lemon tea has spread to third- and fourth-tier cities.

More than two months ago, Zheng Yujie found that lemon tea was showing signs of popularity, and he founded the hand-made lemon tea brand “Jianwei” in Shanwei City, Guangdong Province. “In something of a popular second-tier cities, must also be fire to the four-tier cities.” He said with conviction.

Later facts proved that his prediction was accurate. “When I first opened the store, there were not many people in this city who made hand-made lemon tea. Since July, there have been stores opening one after another, and there are only five I know.” Zheng Yujie said to the “Frontline of Entrepreneurship.”

Consumers have shown great interest in lemon tea. “When we opened for 3 days, many neighbors, Lin Xiangning’s customers came to us to buy, and they became our old customers.” Zheng Yujie said that the customer repurchase rate was about 80%.

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Picture / Simple hand-made lemon tea

The capital market has also sensed this wave . According to reports, Guangzhou’s well-known lemon tea brand “Uncle Qiu” received more than 100 million yuan in financing at the beginning of this year. After 10 days, the two institutions pursued investment again, and Uncle Qiu’s valuation nearly tripled within 10 days. At the beginning of July this year, Ningji also announced that it had received tens of millions of yuan in Series A financing, and the investor was Bytedance .

In the pursuit of many brands, the small perfume lemon has also sold sky-high prices. According to Zheng Yujie, affected by market supply and demand and bad weather, the price of perfume lemons has soared from two to three yuan per catty to 35 yuan per catty, and it has remained at a high price of more than 20 yuan per catty until now.

The popularity of lemon tea has caused a series of “chemical reactions”, and the upstream and downstream related to it have entered a new round of development peak period.

2. March to the north

In fact, the sudden emergence of lemon tea is also reasonable.

Today’s new tea industry, the high-end market is firmly occupied by top brands such as Hey Tea, Naixue’s Tea, Lele Tea, and the sinking market is the main battlefield of Michelle Ice City. The waist market also has CoCo, Xiaodian, Tea With many brands such as Baidao, the pattern of the beverage industry has shown a rough outline.

Then, if you want to continue to cultivate tea, you must continue to subdivide it, and lemon tea, which has a wide audience, belongs to the sub-category and has great potential.

Last year, “Answer”, a FMCG think tank under Huoquan, found through word frequency statistics that “lemon” is the most popular type of fruit tea, and lemon-flavored products accounted for 17.34% of the total tea beverages.

The “2021 China Lemon Tea Industry Development White Paper” also mentioned that in 2020, the number of lemon tea specialty stores nationwide will exceed 2500. Last year, these specialty stores sold about 280 million cups of lemon tea. It is expected that China will make (hand-made) lemon tea in 2021. The scale of tea consumers will exceed 30 million. These data are sufficient to prove the vast market space of lemon tea.

For a long time, lemon tea has been the standard in Hong Kong-style tea restaurants, and it has blossomed in Hong Kong, Guangzhou, Shenzhen and other regions. There is still a saying in the industry that “lemon tea can’t be exported from Guangdong”. However, in this wave of lemon tea, practitioners also have a tendency to go north.

For example, Ningji chose Changsha as the “Internet celebrity city” from the very beginning, and some lemon tea brands that have long been rooted in Guangdong are also expanding their markets northward. “We have more than 300 stores in Guangdong Province, the brand is already very mature, and we are currently focusing on exploring the northern market.” Fan Ting (a pseudonym), a franchisee in the neighborhood, said to “Forefront of Entrepreneurship.”

Liu Wei (a pseudonym), a franchisee of another lemon tea brand “Da Ning”, also told the “Forefront of Entrepreneurship” that Da Ning has been open for franchising since 2019. There are now more than 400 stores, mainly in southern China. Expanding inland.

In the highly competitive South China region, it is difficult for new lemon tea brands to play new tricks. In contrast, the North is still a blank market. As the players marched northward, the lemon tea has a tendency to start a prairie fire.

Of course, what attracts players most is the huge profit margins of lemon tea itself.

At the beginning of the business, Zheng Yujie and another partner invested 30,000 to 40,000 yuan each. “If business is good, we can sell more than 200 cups a day, and it will be reduced by half on rainy days. It is expected that we can pay back in one or two months.”

In addition, according to franchisees, lemon tea is a very profitable business.

“Our main cup of hand-made lemon tea costs about 3 yuan, and we can sell it for 13 to 14 yuan in Guangzhou. After including labor and rent costs, the profit can reach 70% to 80%.” Liu Wei said.

 “Our gross profit margin can reach 80%.” Fan Ting also said that in the more than 300 stores they currently open, they sell for more than 3,000 yuan a day, which is usually 6,000 or 7,000 yuan. “We have a store in Chengzhong Village, Xiaolan Town, Zhongshan City. It opened on July 1, and the sales in 5 days was 67,000 yuan, while the total investment of this store was only 126,000 yuan.” 

If calculated according to this, some stores will be able to pay back as soon as half a month.

However, it needs to be clear that the above-mentioned franchisees are all established brands, such as Da Ning and Neighbors, which generally have their own cooperative orchards and tea gardens, which can not only ensure the stability of the supply, but also reduce the cost of raw materials. But for small players or early invasive product brand, this market is not so friendly.

Because he is in the initial stage and the quantity of goods is small, Zheng Yujie does not have a price advantage when buying lemons, and the price of drinks cannot be as high as in first- and second-tier cities. “Our pricing is divided into two gears of 13 and 15 yuan. Overall, we can make three or four yuan per cup. We mainly run volume.” 

In first- and second-tier cities, a cup of hand-made lemon tea can easily sell for 20 yuan, or even more expensive. The “Frontline of Entrepreneurship” checked the tea prices in several Lin Xiangning stores on Meituan, and found that most of the lemon tea was over 17 yuan, and the expensive one was even more than 40 yuan a cup.

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Photo / Tea prices at Lin Xiangning’s Zhengzhou Longzihu store

It is not difficult to see that taking advantage of this wave of new tea drinks, lemon tea has not only been able to “turn over”, the price has also doubled.

3. Survive the winter

How is a cup of hand-made lemon tea made?

The black tea or green tea boiled to open, filter out the tea cold standby, then cut thin slices of lemon perfume, into the measuring cup, add ice, beat them, and finally adding ice tea, shake, a cup of tea with lemon on hand to play it is done. This is a hand-made lemon tea making tutorial shared by many netizens on Douyin and Xiaohongshu .

The ingredients of lemon tea are mainly lemon and tea. The ingredients and procedures are simple and easy to scale, but this also makes its threshold seem not high, and the product is easy to homogenize.

However, if you want to make hand-made lemon tea delicious, the threshold is not low.

The lemon that has been beaten gives off a fragrance, and if artificial force is too strong, it will also produce a bitter taste. After a while, the made lemon tea will become bitter and difficult to eat. Therefore, lemons need to be beaten several times, what heat is used to make tea , how long to cook, and when to put sugar-these seemingly simple processes are all the key points.

The taste of lemon tea can not only be reflected in the process, but also can be differentiated in the use of raw materials.

“Although the raw materials are relatively simple, the tea base formula and raw materials of each brand are different.” said the person in charge of the Guiyuanpu brand.

He revealed that the tea used in Guiyuanpu was produced in Sri Lanka at an altitude of 1,700 meters. “The quality of the tea in each area is different. After a lot of tests, we selected this tea that matches the brand.”

Guiyuanpu’s lemons also come from Anyue, China’s largest lemon commodity production base, and only purchase high-quality first- and second-class fruits. “You buy tea that others can’t buy, and use high-quality lemons that others can’t use. This is where the difference lies.” said the person in charge of Guiyuanpu’s brand.

In addition to ensuring the quality of the product, how to maintain user stickiness is another challenge facing the Internet celebrity lemon tea brand.

Young people like to be curious and have low loyalty to the brand, especially the ingredients and processes of each lemon tea brand are similar, and it is difficult for consumers to have a deep impression on a certain product. This requires brands to continue to innovate and build their own benchmark products in order to form a “brand mind” in the minds of consumers.

“Rooted in the area of well-known brands allows the user to remember, such as Changsha mentioned we think of drinking tea Yan Yue color . Similarly, if a brand flagship product, it can also be user in mind, for example, you will see the seven Sweet Think of drinking poplar twig nectar; when you see Guiyuanpu, everyone will think of drinking frozen lemon tea and eating egg waffles.” said the person in charge of the Guiyuanpu brand.

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Picture / Guiyuanpu Iced Lemon Tea

Before the practitioners, there is another cruel question: Lemon tea is more suitable for making cold drinks. After summer, what will these lemon tea brands sell? Especially when many brands are currently expanding the northern market, this has become a problem that cannot be avoided.

“The South China market is hot weather for about 10 months every year, which is suitable for the development of lemon tea. However, the winter in East China and North China is long, and consumers cannot still drink ice drinks in winter. Therefore, tea brands still need hot drinks to fill the difference of users. Demand.” The person in charge of the Guiyuanpu brand told the “Frontline of Entrepreneurship”, “This is also the reason why many chain brands are unlikely to only produce a single product.”

Can lemon tea, which has suddenly become popular, maintain its vitality after summer? In the short term, it is more urgent to make a clear choice.

Therefore, for lemon tea brands, while they are expanding rapidly, they need to think more about how to survive the winter and retain those consumers who always pursue freshness?

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/370-new-brands-were-added-in-180-days-and-lemon-tea-turned-into-an-internet-celebrity/
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