With 130 million registered members
worldwide, the Chinese tea brand aims to sell 15 billion of
servings annually as it pioneers modern Oriental tea in
future
SHANGHAI,
May 21,
2024 /PRNewswire/ -- CHAGEE, a leading tea brand in
China, is aggressively expanding
its global reach.
At the International Tea Day 2024 - Modern
Oriental Tea Innovation Forum, held on May
21st, Junjie Zhang, Founder
and CEO of CHAGEE, revealed that the brand now serves over 130
million registered members worldwide. CHAGEE has set its sights on
catering to consumers across 100 countries and delivering 15
billion of modern oriental tea each year.
Since opening its first shop abroad in
Malaysia in August 2019, CHAGEE has further expanded into
Thailand and Singapore, and now operates over 4,500 stores
globally. The expansion underscores the increasing international
demand for oriental tea, with CHAGEE at the forefront of the
trend.
Speaking at the forum, Zhang said, "CHAGEE is
dedicated to revitalizing ancient tea-making methods that date back
900 years through the use of modern technology. The initiative not
only returns us to the origins of tea but also redefines the
contemporary tea-drinking experience. CHAGEE is focused on
promoting the health benefits of our products while facilitating
cultural exchanges between China
and the global community. Our objective is to build a world-class
brand in the ready-to-drink tea market, offering consumers
worldwide the opportunity to enjoy the taste of contemporary Asian
tea."
The Rise of Oriental Tea Brands on the Global
Stage
CHAGEE, which was established just six years ago
in Yunnan province—considered one of the historic origins of
tea in China, —has swiftly climbed
the ranks to become a leader in the competitive tea beverage
sector. Specializing in raw-leaf fresh milk tea, the company melds
traditional oriental culture with tea heritage and innovation. Its
expansion across all major provinces and cities throughout
China illustrates CHAGEE's
rapid growth and significant penetration in the global market.
In 2023, CHAGEE achieved a Gross Merchandise
Value (GMV) of 10.8 billion yuan in
Chinese market. As of the first quarter of 2024, CHAGEE had
achieved over 5.8 billion GMV and it's expected over 20 billion yuan by the end of 2024.
More importantly, the oriental tea brand is
increasingly attracting a younger audience.
Diverging from the traditional tea market, which
typically skews older, CHAGEE has captured the interest of
consumers in the 15 to 50 age demographic. The broad appeal is
significantly unifying the perception of modern oriental tea across
generations.
Over the past few years, CHAGEE has fused modern
technology and health-conscious values with oriental traditions to
promote its innovative tea products worldwide. In 2023, the brand
enhanced its product formulations by removing artificial flavorings
from its tea bases, eliminating creamers from its milk, and
ensuring that its beverages contain zero trans fatty acids. CHAGEE
also introduced novel features such as the Product ID Card and a
Health Calculator, and took the unprecedented step of publishing
calorie and nutrient content reports for its products, a first in
the ready-to-drink tea industry.
In early 2024, the company continued the lead in
the industry by implementing the Nutritional Choice label at its
Shanghai locations, introducing
the first nutritional grading system specifically for tea
beverages. The development ushers in a new era focused on managing
sugar intake. In March, CHAGEE announced the glycemic index (GI)
values for several tea beverages for the first time, providing a
scientific basis for sugar management.
Today, CHAGEE's signature offering, Jasmine Green
Milk Tea, enjoys robust sales, with over 230 million servings sold
annually. The standout beverage not only maintains a growing
repurchase rate but also demonstrates the brand's commitment to
meeting consumer expectations for quality, user experience, and
health benefits.
Modernized Operation Boosts
Profitability
Over the past few years, CHAGEE has dramatically
transformed its operational processes, crucial in its mission to
become a competitive force worldwide.
The company has integrated modern management
tools into its operations, establishing an online system that
synchronizes the management of personnel, inventory, delivery, and
store locations. This integration has led to the development of a
holistic digital operations framework and a comprehensive digital
management system, marking significant advancements in the
industry's operational practices.
CHAGEE stands alone as the sole freshly brewed
tea company in the country to have successfully implemented a
decentralized local service center. The company
operates according to the '1+1+9+N' model, which encompasses a
central headquarters, a dedicated local team, nine directly-managed
stores, and an unlimited number of franchised stores. This
structure offers substantial support for its franchisees,
bolstering local operational capabilities and enhancing
responsiveness to market dynamics.
CHAGEE also maintains a policy of operating
directly-managed stores prior to opening up a new market to
franchising. When entering a new city, it first opens a flagship
store to test the business model and establish a market presence.
Depending on local market needs, the number of directly-managed
stores may exceed nine to ensure business consistency is achieved
prior to expanding the franchise network. The strategy has enabled
rapid expansion and high profitability rates among CHAGEE's
domestic stores over the past six years, significantly aiding its
franchisees in becoming profitable.
In the critical areas of digitization and
intelligent technology, CHAGEE has continued to invest and achieve
significant results. The company began integrating automated
tea-making equipment in select shops in 2022 as part of a pilot
initiative. The subsequent year, CHAGEE unveiled the
next-generation TEA BAR, featuring
innovative offerings like Tea Extreme Extract and Oriental Ice Tea,
modernizing the traditional tea-drinking experience with a
technological twist. The period also marked the official rollout of
CHAGEE's proprietary automated tea-making equipment across its
stores.
To ensure a robust supply chain, CHAGEE directly
sources all tea and milk for its domestic operations, managing
distribution through the group's headquarters. The company has
established multiple urban warehouses across the country to
maintain optimal freshness of all raw materials. Internationally,
tea products for CHAGEE's shops are also sourced and logistics are
handled through the headquarters, adhering to all necessary
international quarantine protocols. Additionally, high-quality milk
and other raw materials used in each location comply with local
regulations, supported by CHAGEE's local supply chains and storage
solutions to facilitate procurement and distribution.
At the forum, Zhang also discussed the intrinsic
appeal of tea as one of the world's primary beverages, capable of
transcending age, borders, and economic cycles. He envisages the
future of modern oriental tea as both a return to its roots and a
means of connecting people globally. "CHAGEE is focused not on
creating demand but on discerning and satisfying the expectations
of tea drinkers around the world." Zhang added.
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