Can Metaverse revitalize Michelle Ice City?

Is it reliable for Michelle Ice City to embrace the meta-universe?

The meta universe is like a basket, everything can be put in it. The news about Metaverse has not been interrupted recently. In addition to technology-related companies, players in many other fields are also entering Metaverse. According to the Tianyan Check App, Michelle Ice City Co., Ltd. is applying for Metaverse related trademarks, including Xuewang Yuan universe, Michelle Yuan universe and MIXUEMETA, etc., are currently under application for this series of trademarks.

Not only Michelle Ice City, Zhangjiajie Scenic Area also announced the plan of Metaverse not long ago. This is not over yet, and some countries even want to set up the first Metaverse Embassy. With the help of the meta-universe craze, it seems that any industry or thing can take the concept of meta-universe and cross-border once. From a development point of view, Michelle Ice City’s application for the meta-universe trademark may not only be a gimmick, Now Michelle Ice City has more than 20,000 offline stores, but it is still facing some development difficulties. It is necessary to find new ways of high-end breakthroughs to accelerate the store layout in the first- and second-tier markets.

Diversified exploration of Michelle Ice City

When it comes to Michelle Ice City, many consumers will think of its magical brand promotion song and a few dollars of ice cream and lemonade. In other words, it is “down to earth” enough to build from the brand image to the product price. The approachable development route of Michelle Ice City is the key to its rise in the sinking market, but it also limits the further development of the brand to a certain extent.

Michelle Ice City has been making continuous moves recently, and is catering to different consumers with more diversified layouts, trying to find new development routes beyond milk tea. At the market level, Michelle Ice City opened its first “Snow King Castle Experience Store” in its headquarters in Zhengzhou some time ago, focusing on experiential consumption, divided into dessert area, fried skewers area and DIY handmade area to allow consumers to stay in the store. Longer, buy more new products and increase the customer unit price; in terms of industrial layout, Michelle Ice City established Snow King Agricultural Company and Snow King Investment Company to strengthen its control over the supply chain.

Can Metaverse revitalize Michelle Ice City?

Speaking back to the meta universe, from another perspective, meta universe is not the tall digital holographic world in the movie. The digital development of human beings is also part of the meta universe. Luo Yonghao’s previous repost of foreign blogger Shaan Puri’s views is similar. The emergence of this kind of technology has led human beings to the digital world, and also pushed humans into the meta-universe in a disguised form.

Therefore, the Snow King Metaverse in Michelle Ice City is not a physical milk tea product metaverse or a snack metaverse, but an industrial metaverse that is digitally managed in the supply chain and offline stores. The rise of Michelle Ice City appears to be the success of the low-price strategy. In fact, the core of the low-price strategy requires a complete supply chain to support. Only through self-operated supply chain and enterprise digital management to improve efficiency, can we extract as much as possible Every bit of profit. The low-price strategy of the current tea market seems to be easy to replicate, but how many brands can really achieve 10,000 stores?

Michelle Ice City adopts a self-operated model in raw material production, storage and transportation. The back-end self-operated network supports the daily operation of the front-end franchise stores. To some extent, this is the meta universe of the supply chain. At the raw material production end, Michelle’s own raw material factory produces puree and special milk for various products, and then sends them to storage bases in different regions of the country, such as Central China Warehouse, East China Warehouse, and South China Warehouse. Finally, according to The needs of different stores are distributed, and every link in it is inseparable from digital management. According to the needs of different regions and different stores, reasonable production materials are used to reduce waste in production and distribution.

According to the company’s search , Michelle Ice City has established nine new companies in recent years, covering food, technology, supply chain management, agriculture and corporate management. The business scope of Snow King Technology includes Internet of Things application services, computer system services, and corporate management consulting. Considering Michelle’s stringent demand for supply chain management, Michelle’s diversified expansion requires supply chain and technology. Paving the way in advance, there is currently only one Snow King Castle experience store selling fried skewers, and the store’s product SKUs are much more than ordinary stores. If you want to promote this model on a large scale in the future, you cannot do without a new supply chain. That is, “The store SKU has not moved, and the supply chain management and control first.”

Can Metaverse revitalize Michelle Ice City?

Diversified honey snow Bard to change, rooted in the sinking market honey snow and ice city to fight a lot , like, have to break up demand, a series of experiential consumption and help to change the mode of multi-SKU honey snow Bard The brand image allows it to at least catch up with Nayuki’s tea and other brands in terms of store area and product SKU , and enter more first- and second-tier cities in shopping malls. Of course, honey snow Bard break up or need to shop in essence, as long as more stores to Fun economies of scale, to maximize supply chain advantage.

Playing with economies of scale

Twenty thousand stores are not enough, and Michelle Ice City will open more stores. Similarly, Michelle Ice City also has stores closing, but the rapid increase in the number of stores cannot be held. In June last year, the number of Michelle Ice City stores exceeded 10,000. By October this year, the number of stores exceeded 20,000, and the number of stores was much larger. in hi tea , Chennai tea and a little snow and other brands.

Michelle Ice City is keen to open stores, one of the reasons is to widen the moat. The entry barrier for the current milk tea industry is not high, especially in the low-price range. It is mainly brewed with raw materials such as modulated milk and milk powder. As long as consumers need them, they can purchase raw materials online for brewing milk tea. The low threshold makes Michelle Ice City need to reduce the cost of franchise stores, supplemented by convenient supply of self-operated raw materials, and hit the low-price milk tea market by depressing prices and multi-store strategies.

In terms of the market, according to data compiled by Industrial Securities, the CR5 concentration rate of the domestic tea industry in 2019 is only 27.12%, that is, the market share of the top five players in the market is relatively low, and the market has not yet formed a real industry giant. Over 70% of the market belongs to other players. Correspondingly, the CR3 rate of the U.S. coffee market in 2020 is 78%. In the domestic smartphone market in the first half of 2020, Huawei alone accounted for more than 40% of sales. High players.

Can Metaverse revitalize Michelle Ice City?

There seem to be many stores in Michelle Ice City, but in fact they are not enough. Michelle Ice City still has a lot of room for growth in the first- and second-tier markets. According to data from Jihai , in 2020, the stores in first-tier, new first-tier and second-tier cities will only account for 38.51% of the total stores. Secondly, the distribution of Michelle’s stores also has obvious regional characteristics, with nearly 70% of the stores. Distributed near residences and schools, the proportion of stores in shopping venues is 17%, which is much lower than CoCo and Happy Lemon. The economies of scale of Michelle Ice City are not perfect at this stage. The commercial districts of first- and second-tier cities represent new consumption scenarios. In addition to the down-to-earth brand characteristics, Michelle Ice City needs to find new entry points to enter other markets.

Take Heycha, whose stores are mainly distributed in first- and second-tier cities, as an example. Although it is not chasing the meta universe, it is much more flexible than Michelle Ice City in the application of new concepts, and it often launches joint new products to attract consumers. According to the statistics of New Game, from 2017 to May 2020, Hey Tea has had a total of 74 joint activities with 74 brands, which is more than the current SKU of Michelle Ice City (about 30 kinds), and well-known The co-branding of the brand can enhance the visibility and value of the platform and move closer to the high-end direction.

The current situation in front of Michelle Ice City is that its market share in some of the sinking markets has been saturated. Breaking upward is the dual need of brand economies of scale and long-term development. The essence of the theory of economies of scale is to increase the absolute quantity of products in order to reduce the unit production cost of products and increase profits. Economies of scale are also applicable to the milk tea market in first- and second-tier cities. Reduce costs with the large-scale operation of opening more stores. Hi-Tea and Naixue’s tea, which are positioned at high-end, are also expanding stores, opening more stores to share the cost. Hi-Tea will add 304 stores in 2020, which is close to the total number of stores opened in the past eight years.

In general, whether it is a tea brand that is originally positioned in a high-price area or a low-price area, it needs to play with economies of scale. For Michelle Ice City, the diversified exploration at the store and product level is to cut into the malls in first- and second-tier cities. As for how to expand the store SKU, Michelle Ice City’s self-operated raw material factory needs to develop new products and optimize storage and storage. In the distribution chain, the storage and distribution requirements of high-priced fresh fruit and fresh milk tea are higher than that of the prepared puree. The high-end breakthrough of Michelle Ice City is also a movement of supply chain innovation.

What will happen in the future?

The concept of Meta Universe has been very popular recently. Many companies want to try to take this high-speed train to make their stock prices take off. To determine whether they are fighting for a gimmick or really want to develop Meta Universe, it is necessary to make a judgment based on the company’s existing industrial layout and future layout. .

Michelle Ice City’s application for the registration of the Meta universe series of trademarks may also symbolize Michelle’s digital improvement in the supply chain and industrial technology. It not only wants to find more footholds in first- and second-tier shopping malls, but also wants to ensure certain Product cost performance and profitability are inseparable from the ultimate cost control at the end of the supply chain.

With the continuous expansion of the number of stores, the major domestic tea brands are basically spending money on the market. Michelle Ice City registered the Yuan universe trademark, which is also suspected to cater to the preferences of the market and capital. However, the false bubble will always burst one day. What really makes Michelle Ice City go further is the supply chain construction and store layout behind it. The development of chain brands such as KFC and McDonald’s benefited from the supply chain and brand standardization. Construction.

Many industries may strengthen refined operations and management in the future. Intelligent digital systems play a key role in them. After the market dividends on the toC side gradually disappear, more and more players will focus on the toB market, allowing traditional companies to touch the Internet and accelerate them. Digital transformation. The digitization of the current tea market includes the digitization of business operations and the digitization of the supply chain. Michelle Ice City has successively registered multiple companies in different fields, which may mean that it wants to increase the control of the entire tea industry chain. In the past, Michelle Ice City With the rise of supply chain and economies of scale in the sinking market, this strategy can also be used in the future to explore the high-end, bringing a little bit of difference in the first- and second-tier tea market.

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