In the past 10 years, after the fierce competition brought by the rapid development of China tea industry, the phenomenon of “rat race” has become more and more serious, the growth rate has slowed down, and the market has become saturated. It is urgent to lay out overseas and seek incremental markets. Overseas markets will become the second growth curve of tea brands.
After nearly half a year’s preparation, Runxiang Catering Management Co., Ltd., which has been operating in China for nearly 10 years, has launched a tea brand in Indonesia with more than 3,000 stores: WEDRINK.
WEDRINK’s first stop overseas was in Indonesia, the world’s largest island country, which is the high temperature in Southeast Asia all year round, with an average annual temperature of 30 ℃, which can be described as the “golden temperature” for the development of cold drinks. Southeast Asians have demand for cold drinks almost all year round, and there is almost no difference between off-season and peak season in the cold drink market.
Secondly, there is a saying in the industry: Those who win Indonesia win Southeast Asia. After all, the population of 270 million is definitely not a small market. And Indonesia’s population aged 15-65 accounts for almost 70%. The proportion of young people around the age of 30 is relatively large. Moreover, at present, no tea brand in Southeast Asia can dominate the market, so the unique business environment provides attractive conditions for tea brands.
Runxiang Restaurant has successfully operated brands such as Baidu Beverage and Chazhuzhang in China, and has developed in the tea industry for decades. However, in order to survive and develop in the Indonesian market, the past supply chain system and operation management experience can only be used as the basis, and overseas is full of opportunities and challenges. For example: Product taste, price range, development stage of national economy in Southeast Asia, and infrastructure construction all challenge the past management mode. How to take root here is the direction that tea brands need to make continuous efforts.
To this end, WEDRINK has made the following adjustments:
- Pay attention to the construction of the supply chain, and a stable supply system is the basis for a good brand. Set up a number of large warehouses to support the timely delivery of raw materials supplied by multiple islands, and set up a transit warehouse in Guangzhou, China, and a professional team to ensure the normal operation of overseas warehouses.
- Adjust the overall product structure and taste. Promote ice cream, sundae-based products, with Indonesia’s favorite pearl series, add 1L barrels of fruit tea, and innovate a number of matcha-flavored products. At present, nearly 10 shops opened in Jakarta are interpreting the charm of innovation and change. Secondly, in order to satisfy the taste of Southeast Asians who are fond of sugar, the taste sweetness of each product is adjusted so that consumers can enjoy more delicious products.
- For overseas brands, overseas operations and human resources are far more demanding in China. After trying, many tea brands are also trapped in the small circle where Chinese are located in their management. In order to achieve rapid expansion, the depth and systematization of management is an inevitable choice. WEDRINK plans to continue to open about 20 direct stores in Indonesia in the early stage, and establish WEDRINK’s supervision system, store manager system and training system through direct stores, so as to continue to empower the chain stores.
- WEDRINK’s operation and promotion are combined with local channels, and local employees are recruited and appointed. TikTok, Facebook, talent live broadcasts of shop visiting and outdoor advertisements are constantly integrated into Indonesia, affecting Southeast Asia.
“Plant up the parasol tree, lead to come to gold Phoenix”. During the renovation of WEDRINK Company, preparations for ten stores in Jakarta have been under way, and more than 30 new stores have been opened one after another. In the new tea industry, the Matthew effect of the stronger and the weaker will become more prominent, and Southeast Asia will surely become an important step for WEDRINK to go global.