Lack of innovation of solid milk tea encounters bottleneck
Solid milk tea due to the lack of innovation encountered a bottleneck period, the overall market began to reduce forward. In recent years, the sales volume of several solid milk tea brands has declined, and the market share of the largest xiang piao brand in the market revenue has also declined. Industry insiders said that influenced by the impact of instant tea, the increase of consumers' demand for health and insufficient product innovation, the solid milk tea business encountered a bottleneck period and gradually entered the dilemma of slow growth and limited growth space.
On the evening of Aug. 16, xiangpiaopiao released its interim results report, saying revenue was 870 million yuan, up 55.38 percent from a year earlier. The net loss in the first half of the year was 54.58 million yuan, down 78.92 percent year-on-year. A loss of 30.5081 million yuan in the same period last year.
Xiangpiaopiao officially went public on November 30, 2017. Nine months later, the capital market is not satisfied with the performance of xiangpiaopiao. As of Aug. 16, xiang's shares closed at 19.36 yuan per share, down 1.33 percent and 26.81 percent so far this year. Revenue rose sharply but profit lost, which xiang attributed to seasonal factors.
Xiang explained that the second quarter is traditionally a slow season for solid milk tea in cups. Because the main product of xiangpiaodao is milk tea in solid cup, its characteristics of instant drink determine its hot drink properties, hot sales in winter cold weather, but less sales in summer. Therefore, the fourth quarter of each year to the first quarter of the next year is the peak sales season, and the second and third quarter of each year is the company's product sales slack season.
On the other hand, rising costs are also the main cause of losses. Since 2017, the price of raw materials has increased a lot, but the price of xiangpiaopiao products has not been adjusted, resulting in a sharp decline in the company's gross profit rate compared with last year. Milk tea industry shows that in the first half of 2017, the company's gross profit rate of products was 33%, which further dropped to 30% in the same period this year. The rising cost has a great impact on the company's profits.
But in fact, xiangpiaopiao performance loss of another reason, and sales expenses related. Xiang piao has been known for its huge marketing expenses in the market. During the first half of the year, xiangpiao's sales expenses reached 317 million yuan, up 54 percent from a year earlier and accounting for 36 percent of revenue.
In the first three years of listing, xiang piao's prospectus shows that from 2014 to 2016, the company's advertising expenses were about 333 million yuan, 253 million yuan and 359 million yuan respectively, accounting for 28.81% of the operating costs in the three years, while the net profit was only 70% of the advertising investment.
Enterprise fa li cup liquid milk tea
Young people are the main force of milk tea consumption. In July, 83 percent of milk tea consumption was made by people born in the 1980s and 1990s. Among them, the post-80s and post-90s women showed their super fighting power, and they drank up 51% of the milk tea in the city. For most young women, milk tea in their hearts has approached or even exceeded the status of three meals a day.
Statistics show that women born in the 1980s and men born in the 1980s Shared the highest per-capita consumption of milk tea in July. Interestingly, the higher the temperature, the lighter the taste of people in nanjing. According to the data, from April to July, with the increase of temperature, the market share of sweet milk tea such as red bean and pudding and all kinds of rock salt milk tea decreased, while the market share of original milk tea and oolong milk tea with lower sugar content increased gradually.
Previously, xiang piaodao has been criticized by the market for its excessive reliance on brewed milk tea. In order to fill the off-season sales, xiang piaodao launched two new series of "lanfangyuan" and "MECO" in April 2017. However, according to the semi-annual report of xiangpiaomiao, the sales revenue of tea with cups and mixed milk in the reporting period was 732 million yuan, still accounting for about 85% of the total sales.
But cup liquid milk tea market has excessive competition, unified, master kong, kirin, wahaha, suntory launched as early as before or cup liquid milk tea tea is hard to do, or the starting point is mainly in order to complete the product line, from the perspective of competition not wrong, but the consumer and the market has not accepted, the medium and long term strategy has obvious problems.
Brewed milk tea and cups of liquid milk tea won't sell, but high-priced ready-to-eat tea and street milk tea are selling better. Insiders believe that this is because instant tea and milk tea meet the core needs of consumers, and they are fast and have social functions, especially web celebrity milk tea.