Milk tea has become somewhat of a national obsession, and a booming business, in China. Many tea connoisseurs said they just can't wait for the COVID-19 pandemic to end so they could resume indulging in their favorite pleasure－drinking milk tea.
Not so long ago, such consumers would line up outside milk tea stores. But, the advent of online service platforms that offer home and office delivery has transformed the business, expanding its scope and reach.
Now, the pandemic and the attendant stay-in lifestyle have led to further growth of online orders and contactless deliveries of beverages, spurring exclusive e-stores on Alibaba's Tmall shopping platform.
Far from crimping the milk tea market, the pandemic appears to have presented new growth opportunities, an industry expert observed.
"The epidemic has forced some small businesses to shut down due to financial pressures, and this will likely benefit reputable brands that boast deep pockets and loyal patrons. The industry will see concentration of leading brands that are expected to enjoy long-term dividends," said Neil Wang, president of consultancy Frost& Sullivan China.
Hey Tea is one such leading brand. Guangdong province-based, the popular milk tea maker debuted in 2012. It will soon launch its official store on Tmall, and offer a group of new products such as tea gift boxes, juices, yogurt, biscuits, coupons, and some other cultural derivative products.
"We aim to keep innovating and diversifying our portfolio, and create freshness for consumers. By retailing online and cooperating with renowned brands, we can further expand our consumption scenarios and create more demand," said Huo Wei, public relations director of Hey Tea.
"The brand has expanded its hot-selling flavors and is an inspiration for other joint products and more channels. Thus, it will slowly foster its explosive IP (intellectual property)," she said.
The epidemic had a negative impact on China's catering sector, including the milk tea segment. In the first two months of this year, sector-wide sales declined nearly 40 percent year-on-year. Since March, the sector started to recover, according to Frost& Sullivan.
Source: China Daily
