Heytea, a leading Chinese tea chain, plans to open its new branch in Paris ahead of the 2024 Olympics, following its announcement of reaching 4,000 global branches. With a focus on the US and UK, Heytea has been expanding internationally while facing saturation in Chinese Tier 1 and 2 cities. The company faces competition from CHAGEE, particularly in lower-tier cities. As the domestic market shows signs of decline, Heytea's overseas expansion becomes crucial for sustained growth and success.
Heytea, the prominent Chinese tea chain, is set to open its latest international branch in Paris, coinciding with the 2024 Summer Olympics in the French capital. This exciting announcement follows Heytea's recent social media posts, in which the brand proudly revealed its global reach of 4,000 branches. Embracing a more inclusive identity as a "New Asian Tea brand," Heytea exemplifies the evolving guochao 3.0 trend, which celebrates new-style tea with a modern Chinese touch.
While domestic growth has slowed, Heytea continues to accelerate its global expansion. The company's 2023 annual report highlighted a total of 3,200 locations by the end of the year, including 2,300 franchised branches. Remarkably, Heytea has opened 800 new locations in the first half of 2024. While this figure is lower compared to 2023, Heytea remains committed to expanding its presence worldwide.
The United States and the United Kingdom are now the focal points of Heytea's global strategy. With overseas franchising introduced in March 2023, Heytea successfully launched its first UK branch in August of the same year. Currently, the UK boasts seven Heytea branches, with five more in the pipeline. In the US, Heytea has two locations and plans to establish 22 additional branches.
In China, Heytea is shifting its attention to Tier 3 cities and beyond, recognizing the saturation in Tier 1 and 2 cities. The brand faces formidable competition, particularly from CHAGEE, which has surpassed Heytea in terms of branch numbers. As CHAGEE has concentrated on lower-tier cities and towns from the beginning, Heytea's move into these areas signals intensified competition between the two companies.
Recent data indicates a potential decline in the freshly-made tea market, with projected growth rates of 19.7% in 2024 and 12.4% in 2025, compared to 44.3% in 2023. As expansion opportunities within China become more limited, Heytea sees international expansion as a promising avenue for future growth.
By venturing "overseas" (出海), Heytea aims to sustain its upward trajectory and continue captivating tea enthusiasts globally. The opening of the Paris branch ahead of the 2024 Olympics not only showcases Heytea's commitment to international expansion but also positions the brand at the forefront of the evolving tea industry.
Comments