Chinese bubble tea in SE Asia - food tech news in Asia

Mixue Bingcheng, a Chinese bubble tea franchise operator has already begun its expansion in the Southeast Asian market. By 2020, the brand became the first Chinese beverage enterprise to have achieved the milestone of 10,000 stores worldwide.

In 2018, Mixue Bingcheng set up another brand name “MIXUE” and opened its first store in Vietnam. Up to now, the brand has nearly 200 stores in the local Vietnamese market and has expanded to neighboring countries such as Myanmar and Indonesia.

In Vietnam, a cup of milk tea costs around 25,000 VND (US$1.1); and MIXUE also maintained such a price range. Today, one can find many bubble tea brands in the street in Vietnam, including KOI, Gong Cha, Chatime, and more, most of which come from Taiwan and Mainland China. Chinese brands from the mainland such as MIXUE and YH.TANG also started targeting to target the Vietnam market. High-end brands, such as Heytea and Nayuki, chose the more economically developed market – Singapore. In our previous news, we have mentioned that Heytea opened the first professional-grade food nutrition and science research center.

When selling bubble tea in Vietnam or other Southeast Asian markets, brands have to constantly adapt to local consumption habits. Except for lively music and flashy light at the door, it may be a bonus point if it is convenient to park motorbikes in front of the store. Different from consumers in China, few people choose the option of less sugar here in Vietnam, although brands will still provide flexible options such as standard sugar and less sugar. Besides bubble tea drinks, brands will offer snacks. For example, Burmese people like to eat fried food, and bubble tea brands should add fish cakes and French fries to the menu to enrich the customers’ experience.

In addition to the desire for brands to become global, the popularity of the new bubble tea brands overseas is also related to the increasingly competitive domestic tea market in China. A new bubble tea brand, that ventures overseas, not only needs differentiated innovation but also needs to test the brand integration ability and supply chain supportability.

However, brands like MIXUE, which are good at managing franchisees in the Chinese market, are also “exporting” their franchise experience to Vietnam. In June this year, MIXUE announced on its Facebook account in Vietnam that it plans to offer a free franchise, design, and management fees in the third quarter of 2021 to attract franchisees. This may help the brand capture the local market in a short time – just as it did in China.

Considering the influence of Chinese brands and the development potential of the Southeast Asian market, we believe that Southeast Asian bubble tea shops have not yet reached a highly competitive situation; currently, in the Southeast Asian market, there is no leading brand. With experience and supply chain advantage, this may become the main overseas advantage for Chinese brands.

You May Also Like

Feihe and Midea partner up to promote a healthier lifestyle

On 23rd July, Chinese giant dairy company Feihe and Chinese famous housing…

Bestme infant noodles focus on baby health

Bestme Guangzhou, a baby supplementary food company located in Guangzhou city, launched…

Overview of baby food in China

As the average income is increasing in China during the last years…

Major bubble tea brands launch new products

In Chinese culture, hot beverages are believed to promote blood circulation, while…

SHUANGTA Food to purchase peas from Russia and Turkey

For Better risk management of Peas ingredients of SHUANGTA FOOD, the company…