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With 130 million registered members worldwide, the Chinese tea brand aims to sell 15 billion servings a year and pioneer modern oriental tea in the 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 on May 21, Junjie Zhang, founder and CEO of CHAGEE, revealed that the brand now serves more than 130 million registered members worldwide. world. CHAGEE has set a goal to serve consumers in 100 countries and deliver 15 billion modern oriental tea every year.
Since opening its first overseas store in Malaysia in August 2019, CHAGEE has further expanded into Thailand and Singapore, and now operates more than 4,500 stores worldwide. The expansion underlines the growing 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 brewing methods dating back 900 years by using modern technology. The initiative not only takes us back to the origins of tea, but It also redefines the contemporary way of drinking tea. CHAGEE focuses on promoting the health benefits of our products while facilitating cultural exchanges between China and the global community. Our goal is to build a world-class brand in the tea market. ready-to-drink tea, offering consumers around the world the opportunity to enjoy the taste of contemporary Asian tea.”
The rise of oriental tea brands on the world stage
CHAGEE, which was established just six years ago in Yunnan province, considered one of the historic origins of tea in China, has quickly risen through the ranks to become a leader in the competitive tea beverage sector. Specializing in fresh raw leaf milk tea, the company fuses traditional oriental culture with tea heritage and innovation. Its expansion into major provinces and cities in China illustrates CHAGEE’s rapid growth and significant penetration into the global market.
In 2023, CHAGEE achieved a gross merchandise value (GMV) of 10.8 billion yuan in the Chinese market. As of the first quarter of 2024, CHAGEE had reached more than 5.8 billion GMV and is expected to exceed 20 billion yuan by the end of 2024.
More importantly, the oriental tea brand is increasingly attracting a younger audience.
Unlike the traditional tea market, which typically skews older, CHAGEE has captured consumer interest in the 15-50 demographic. Its broad appeal is significantly unifying the perception of modern oriental tea across generations.
In recent years, CHAGEE has fused modern technology and health-conscious values ??with eastern traditions to promote its innovative tea products around the world. In 2023, the brand improved its product formulations by removing artificial flavorings from its tea bases, removing creamers from its milk, and ensuring its drinks do not contain trans fatty acids. CHAGEE also introduced novel features such as a product ID card and a health calculator, and took an unprecedented step by publishing reports on the calorie and nutrient content of its products, a first in the ready-to-drink tea industry.
In early 2024, the company continued to lead the industry by implementing the Nutritional Choice label at its Shanghai locations, introducing the first nutritional rating system specifically for tea beverages. The development marks the beginning of a new era focused on the management of sugar consumption. In March, CHAGEE first announced the glycemic index (GI) values ??of various tea beverages, providing a scientific basis for sugar management.
Today, CHAGEE’s signature offering, Jasmine Green Milk Tea, enjoys strong sales, with more than 230 million servings sold annually. The notable 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 increases profitability
In recent years, CHAGEE has dramatically transformed its operational processes, crucial in its mission to become a global competitive force.
The company has integrated modern management tools into its operations, establishing an online system that synchronizes personnel, inventory, delivery and store location management. This integration has led to the development of a holistic digital operations framework and a comprehensive digital management system, marking significant advances in the industry’s operational practices.
CHAGEE stands out as the only fresh brewed tea company in the country that has successfully implemented a decentralized local service center. The company operates under the ‘1 1 9 N’ model, which encompasses a head office, a dedicated local team, nine directly managed stores and an unlimited number of franchised stores. This structure offers substantial support to its franchisees, strengthening local operational capabilities and improving responsiveness to market dynamics.
CHAGEE also maintains a policy of operating directly managed stores before opening a new market to franchisees. When entering a new city, first open a flagship store to test the business model and establish a presence in the market. Depending on the needs of the local market, the number of directly managed stores may exceed nine to ensure commercial consistency is achieved before expanding the franchise network. The strategy has enabled rapid expansion and high profitability rates among CHAGEE’s national stores over the past six years, significantly helping its franchisees become profitable.
In the critical areas of digitalization and smart technology, CHAGEE has continued to invest and achieve significant results. The company began integrating automated tea-brewing equipment into select stores in 2022 as part of a pilot initiative. The following year, CHAGEE introduced the next-generation TEA BAR, featuring innovative offerings such as Tea Extreme Extract and Oriental Ice Tea, modernizing the traditional tea drinking experience with a technological twist. The period also marked the official launch of CHAGEE’s patented automated tea brewing equipment across all of its stores.
To ensure a strong supply chain, CHAGEE directly sources all tea and milk for its domestic operations and manages distribution through the group headquarters. The company has established multiple urban warehouses across the country to maintain optimal freshness of all raw materials. Internationally, tea products for CHAGEE stores are also sourced and logistics are handled through the headquarters, complying with all necessary international quarantine protocols. Additionally, the high-quality milk and other raw materials used at each location comply with local regulations, supported by CHAGEE’s local supply chains and warehousing solutions for easy procurement and distribution.
At the forum, Zhang also discussed the intrinsic appeal of tea as one of the world’s leading beverages, capable of transcending ages, borders and economic cycles. He envisions the future of modern oriental tea as a return to its roots and a means to connect people globally. “CHAGEE does not focus on creating demand but on discerning and meeting the expectations of tea drinkers around the world,” Zhang added.
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