Through strategic cooperation, HeyTea can deploy its capital in the coffee field, and Seesaw can learn from HeyTea’s experience in digitalization and market expansion.
On July 21, the specialty coffee brand Seesaw announced that it has completed the A+ round of financing of over 100 million yuan. Among the investors this time, a new tea brand, Hi Tea , appeared . As a strategic investor, Hey Tea has invested in shares, and the old shareholder Hony Pak Fook also followed suit. This round of financing amounted to more than 100 million yuan, which will be used for nationwide store expansion, supply chain construction and digital construction.
Founded in 2012, Seesaw, a specialty coffee brand from Shanghai , quickly became one of the representative brands of domestic specialty coffee by virtue of its differentiated positioning and exquisite space design from Starbucks . However, Seesaw’s expansion rate has been relatively slow.
After Seesaw opened its first store in Shanghai Jing’an Design Center, a total of 7 stores have been opened in the next five years. By 2017, Seesaw accelerated its store opening after receiving a round of financing from Hony Capital, but it still has more than 30 stores, mainly in high-end shopping malls in first-tier cities.
Seesaw Chongqing store. (Image source: Seesaw WeChat public account)
However, Seesaw, which has completed the A+ round of financing of more than 100 million yuan, may be ready for future large-scale expansion. Seesaw said that the team has completed the establishment of a senior management team, including senior practitioners from top catering platforms such as Starbucks and McDonald’s , as well as post-90s talents from the new tea and beverage, brand marketing and new retail industries.
In accepting the shareholding of HiTea, Seesaw stated that “the two parties will share advantageous resources and synergy in terms of brand potential energy construction, innovative product research and development and supply chain development, corporate digitalization and organizational construction.” Already have nearly 60 cities across the country. The 800 stores of Hey Tea undoubtedly have richer experience in digitization, supply chain construction, and rapid store expansion, and it can also provide Seesaw with experience reference.
Hi Tea aspects of the interface information expressed, Seesaw is a very good local specialty coffee brand, in terms of product, brand and design are very good, and the spirit of the brand hi tea to match.
For Heytea, investing in specialty coffee brands is not only optimistic about the future development of the specialty coffee track, but also has the possibility to strengthen its own coffee business. At present, some Heytea stores have always sold coffee products, but they have not been able to match the main tea business. Become an important new point of performance.
At present , specialty coffee brands such as Seesaw have entered the stage of searching for brand characteristics and conducting differentiated competition.
In 2020, Seesaw has carried out a comprehensive brand upgrade and incubated a creative coffee product line combining “specialty coffee quality + creative product flavor”. Benefiting from this, Seesaw’s store performance has achieved sustained growth in the past 12 months, with more than 90% of stores continuing to make steady profits; brand members and fans have exceeded 1.5 million, and the repurchase rate of creative coffee is as high as 40%. The performance of stores in the core business district is second only to Starbucks in the same business district.
On the other hand, like the forest after the brand strength and growth, founder of Tang Bin Sen established a series of consumer brands Challenger capital investment, now momentum track new tea tea greatest joy, no doubt eager to battle into the capital, with investment For a strategic layout other than the main business, investing in Seesaw may be just the beginning.
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