Do you want to bypass the “ceiling” for store expansion? Hi Tea to the left, MINISO to the right

For offline new catering, the winter of 2021 will come a little earlier than previous years.

On November 5, Haidilao announced that it would gradually close its 300 stores before December 31, 2021, which led to the largest wave of store closures since its listing.

On November 10, Cha Yan Yue Se also announced the temporary closure of nearly a hundred stores in Changsha. This is already the third time that Cha Yan Yue Se has temporarily closed stores this year.

"The offline catering service industry is going through the winter. Cha Yan and everyone are working hard together to keep warm."

Cha Yan Yue Se mentioned in the announcement Weibo that because Cha Yan Yue Se had intensively opened stores in Changsha before, now that the traffic dividend is no longer, the temporary closure of the store is a helpless move made during this special period.

Haidilao’s contraction plan is also due to the huge market opportunity that blinds the eyes and fails to see the level of consumption that the sinking market can accept. In the end, the expansion of new stores is too fast, management cannot keep up with operations, and it is difficult to continue to support. The high cost of opening a store.

Stores are the lifeblood of the offline economy, but the number of stores that each brand can carry is ultimately limited. There are many factors that determine the ceiling of this number, including the passenger flow of the business district, the average consumption level of the city, or the brand's market penetration rate. .

Once the brand's rapid growth has touched this ceiling, and the service has not made structural changes, what awaits them will only be the rapid retreat.

Almost all offline brands will meet the store ceiling sooner or later. So, are there any brands to break or bypass the ceiling? Newcomers may have new ways. Xicha is like an investment bank, while MINISO is a bit like an incubator.

New retail needs to "play cross-border"

What words would you use to define MINISO?

When MINISO was just starting out, we could use the "exquisite ten-yuan store" to summarize this boutique that flaunted the Japanese minimalist style, but with the expansion in recent years, the old label of the boutique has gradually fallen off.

In addition to the fact that it is already difficult for you to find products less than ten yuan in MINISO, more importantly, after years of layout, MINISO has gradually grown to span beauty, fashion, tea and retail. And other business groups in many fields.

The "quality life" defined by MINISO has emerged from the red and white grocery store at the entrance of the pedestrian street, and has become an exquisite blind box in the TOPTOY fashion store, and an orderly arrangement of lipsticks in the WOW COLOUR beauty store. Or the healthy avocado yogurt in Pinxiaocha.

Yes, even if you haven't stepped into MINISO, your life may have been surrounded by MINISO.

Niuniu, who works in an Internet company, accidentally "breaked into" the encirclement of MINISO not long ago.

Niuniu is not too cold with the exquisite life advertised by MINISO, and has doubts about the quality of its products, so he has almost never taken the initiative to walk into this boutique to shop.

However, Niuniu, who is keen on the two-dimensional culture, has the habit of collecting animation figures. When the trendy brand TOPTOY opened its first flagship store in Guangzhou, Xiaolei also lined up at the store for the first time.

Until he returned home with his favorite Gundam, Xiao Lei didn't realize that this Chaowan store, which made him wait in line for an hour to enter, was out of the same door with MINISO.

On October 15, 2020, MINISO, which only opened its first flagship store in Guangzhou seven years ago, was officially listed on the New York Stock Exchange.

One year later, MINISO released this month’s unaudited financial report for Q1 2022 as of September 30, 2021. The financial report showed that MINISO’s net profit for this year was RMB 154.5 million, compared with the net profit of the same period last year. The loss of 1.676.3 billion yuan has turned losses into profits.

Among them, the number of MINISO stores worldwide reached 4,871, including 1,836 overseas stores, a total of 122 new stores in the quarter. The number of TOP TOY stores increased by 39 in this quarter, reaching 72 in total. Not only has the number doubled, but the quarterly revenue has exceeded 100 million yuan for the first time.

Less than a year after its establishment, TOP TOY's growth momentum almost surpassed its own big brother MINISO.

Compared with TOP TOY, the makeup collection brand WOW COLOUR, incubated by MINISO's parent company Saiman Group, is a bit more low-key.

In March of this year, WOW COLOUR received 500 million yuan in Series A financing. According to reports, it has opened nearly 300 stores in 89 cities. In 2020, the annual passenger flow will reach 45 million. It is competing with the colorists of THE COLORIST offline. The strongest rival of the beauty collection store.

If you see this, you still feel that MINISO’s continuous cross-border business attempts are a bold gamble, so you might as well walk into the store nearest to you—each MINISO store is the epitome of its business empire.

Entering MINISO, the colorful beauty products at the door attract young girls to shop for consumption; the blind box products that occupy the largest display area are always the blind box products, with an average price of 49 yuan, which is the store's hope for income generation.

MINISO’s cross-border store opening is actually more like splitting the two most valuable categories in retail stores, focusing on making efforts, and re-leading the way on a new track. The cross-border logic is also very clear-based on The X strategy of MINISO when it went public last year.

Ye Guofu, the founder and CEO of MINISO, once emphasized that the X strategy will be MINISO’s business strategy in 2021. The so-called “X” refers to the continuous expansion of business types, the realization of diversified operations, and the development of MINISO’s business strategy. The new retail brand is transformed into a new retail platform and more sub-brands are incubated.

TOP TOY and WOW COLOUR are the first two results incubated by the X strategy.

However, creating sub-brands from scratch is not suitable for all brands. At least for Heycha, who founded Heyxiaocha last year, it is not easy to reproduce its own success again.

Starting from scratch is not as good as "investing"

According to the first anniversary report released by Xixiaocha in May this year, as of the beginning of April, Xixiaocha had opened 22 stores in 6 cities, and sold more than 2.8 million cups of drinks, whether it was competing products at the same price or Compared with Xicha's own, Xixiaocha's expansion speed is not radical.

Xiao Liang is an out-and-out fan of new tea drinks. He is keen to try every popular tea drink and is at the forefront of the trend. In his opinion, Xixiaocha will not be his first choice for buying tea.

"For teas that are positioned at the price of 6-16 yuan for the people, the taste of Xixiaocha is nothing extraordinary; compared with the high-end Xicha, the cheapness of Xixiaocha is more obvious than other people-friendly teas. Pick up When I like tea, there is always a lingering thought in my mind: Why don’t I just drink tea?”

After the first attempt, Xiao Liang did not continue to pay for the story told by Xi Xiaocha of "being close to the people, but also exquisite."

Xixiaocha's growth will take time, but in the ever-changing new tea market, waiting is extravagant. In the face of Nayuki and other eye-catching challengers, Hey Tea chose to take the initiative.

On November 12, HeyTea acquired 60% of the shares of Shenzhen’s new tea brand "Yecuishan" and became the largest shareholder of Yecuishan.

Founded in 2019, Yecuishan is a juice beverage brand that focuses on “molecular juices”. According to statistics, it currently has more than 30 stores in Shenzhen, with monthly sales exceeding 14,000 cups.

Comparing the stores of Yecuishan and Xicha, you can find many similarities: they are also positioned at a high price of 30 yuan, they also emphasize the quality of raw materials such as fruits, and they also pay attention to store decoration and material design (as a beverage store, it even has private boxes). ).

From the perspective of business model, Yecuishan's products, supply chain and brand are highly compatible with Hey Tea. It is not difficult to understand that Hey Tea will spend a lot of effort to integrate it with its own resources.

In fact, Hey Cha was already a veteran of "buying, buying, and buying" before starting Yecuishan.

On July 21 this year, Seesaw officially announced that it had completed a series A financing of more than 100 million yuan, of which Xicha has already sold and holds 5% of the shares.

Two months later, HeyTea made another move and invested in the plant-based brand "Wild Plant YePlant", which is mainly engaged in oat milk. It is speculated that HeyTea's operation is to prepare for its expansion of the coffee track and enhance its cross-border breadth.

In mid-October, Heytea launched its third investment, and the target was the tea brand "Hejitaotao" that focuses on sinking the market, and its product positioning partially overlaps with its own Heyxiaocha.

Hey Tea is not the first new consumer brand to enter the venture capital, but it may be one of the most frequent investors. The pressure of this is more or less from the old players in the tea market and the continuous entry new player,

If you want to increase your market share, "keep it fresh" is always the secret of the new tea. Hey Tea combines its own industry experience and invests in high-quality brands in the market, which is also a good way to maintain a sense of freshness.

Don't let go of that Gen Z

Whether it is "Molecular Juice", "Atomic Chocolate" or "Quantum Ice Cream", while expanding its products, Hi Tea is also constantly enriching its own freshness and avoiding being forgotten by Generation Z.

MINISO crosses the industry to create multiple types of stores, and Hexi Tea's acquisition of high-quality tea shops are essentially based on a common logic, which is to continuously create freshness for the brand and attract young people to consume.

Compared with blindly expanding the number of stores, this step is more stable.

MINISO pays attention to the more personalized consumption expression of young people, and HeyTea pays attention to the high-end consumption needs of young people. The two focus on consumption orientation are different, but the ultimate driving force of consumption is the pursuit of refined life by young people.

The boundless emotions of young people need a beautiful "plate" to carry. In the past, this "plate" was monopolized by overseas players such as Starbucks and MUJI, but now local brands such as Heytea and MINISO have gradually gained the favor of Generation Z. .

At this time, it is a smart way for the brand to slow down and practice internal skills, tell a more beautiful story, and improve its carrying capacity.

Stop talking nonsense.

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Ai Faner | Original link · View comments · Sina Weibo