Major Chinese tea chain, Mixue has recently entered South Korea and Japanese markets in late-2022.
Mixue has identified Omotesand?, Tokyo, a high-end business district, as its first store location although it seems contrary to Mixue ‘low cost’ drink image. However, Mixue also plans to open stores in Kyoto and other cities in Japan.
Mixue store in Korea opened in late October near Chung-Ang University, where local students and Chinese students often gather. The type of drinks offered are basically the same as those in China, but the prices are slightly higher. Lemonade is around Rmb 8 (US$1.14), which is similar to the price of a bottle of water in Korea, and the most expensive drink costs less than Rmb 16 (US$2.30).
Another Chinese milk tea brand called Gongcha has opened over 700 stores in South Korea, with a higher price range of Rmb 23 – 42 (US$3.40-6.20). Similarly, other milk tea brands such as COCO, Tiger Sugar and Guming, have also expanded their stores to South Korea but their prices are much higher.
Mixue faces initial hiccups when they first entered Korea and Japanese markets like raw material supply and logistic issues which made their products often out-of-stock, as well as their product packaging still in the Chinese language.
Mixue also has strong presence in regional markets like Vietnam and Indonesia where it has more than 250 stores and 317 stores respectively. In total, Mixue has more than 22,276 stores across the globe and it posted revenue of Rmb 10.35 billion in 2021 (US$1.525 billion).