The market scale is nearly 300 billion yuan! Not much attention? Will "Moutai in Tea" appear?
Tea is one of the three major beverages in the world. my country is a major tea producer. However, the tea industry has faced severe challenges this year due to the impact of the epidemic.
As the Mid-Autumn Festival is approaching, how are the tea merchants doing? Can the losses in the first half of the year be made up in the second half?
Offline passenger flow recovers 60% of tea enterprises preparing for the Mid-Autumn Festival
The Fangcun Tea Market in Guangzhou is the largest tea trading market in the country. The tea company where He Jie works has been doing business here for 10 years. The lease is signed every five years. The lease is about to come. They have no idea whether to renew the contract for the next five years. With complete certainty, what makes them entangled is whether the upcoming Mid-Autumn Festival and National Day peak season can make up for the losses caused by the epidemic in the first half of the year.
He Jie, Marketing Manager of Wuyishan Xiangjiang Tea Industry Co., Ltd.: The cost here is at least 50,000 to 60,000 yuan a month. This is the most basic. So far, the balance has just been maintained since June. At a loss, this year’s Mid-Autumn Festival has now been reduced by at least 40% and 50% compared to last year. Last year’s Mid-Autumn Festival started in August, and business was pretty good.
The reporter saw in the tea market that the overall passenger flow is still relatively sparse, and some businesses are not open. A shopkeeper told reporters that before the epidemic, he had to receive customers who came to drink tea from morning to night every day. This year, because of the epidemic, customers came to the door. obviously decrease.
The person in charge of the market told reporters that the Fangcun tea market began to develop in the 1980s and has gathered about five or six thousand tea merchants and tea companies. The customer base has spread throughout the country. This time in previous years, it was crowded with merchants from all over the country to prepare for the Mid-Autumn Festival. The tea gift boxes of tea have also started to be shipped early, and the sales increase brought by the Mid-Autumn Festival this year is not obvious, and some small-scale shops have closed.
Sun Xiyuan, manager of the business department of Qixiu Tea City Co., Ltd.: About 10% of the merchants can’t do it because of the epidemic, mainly in July and August. Since there has been no major improvement up to now, everyone is a bit unable to hold it. It only started around May. Customers, slowly recovering the flow of people, and now it has recovered about 60 to 70%.
Several merchants visited by the reporter stated that, as usual, Mid-Autumn Festival sales accounted for 30 to 40% of annual sales in previous years. Although the Mid-Autumn Festival market started late this year, they are still making full preparations.
New channels and new products epidemic catalyze the transformation and upgrading of the tea industry
Tea merchants are making every effort to prepare for the Mid-Autumn Festival. Under the epidemic, the tea sales model is also changing. This traditional industry, which is dominated by offline experiential consumption, is being catalyzed by the epidemic and is associated with new channels and a new batch of consumers. .
In a white tea plantation in Fuding, Fujian, Chen Xiaoyun is broadcasting live broadcasts to merchants thousands of miles away, while the staff around her filmed the live broadcast process into short videos and posted them online. Since the epidemic, they have become more and more in this process. Familiar with.
This year's tea picking season, foreign merchants were unable to come, and through live broadcast and short video "cloud tea, cloud tea" has become a new channel for Chen Xiaoyun to communicate with merchants.
The merchants watched the tea picking, tea making and tea making process through live broadcast, and then communicated and placed orders through online channels. The reporter noticed that before and after the interview, Chen Xiaoyun kept processing information on her mobile phone. Will also increase investment in online channels.
Not only have the channels changed, but tea products have also changed under the catalysis of the epidemic.
Lin Lijuan has been in the tea business for 20 years. There are 12 tea shops across the country. They are located in the Sanfang Qixiang Scenic Spot in Fuzhou City. In the past few months, affected by the epidemic, the tourist flow of the scenic spot has dropped sharply. Lin Lijuan brought the tea masters back to her tea garden in Wuyishan Here, live tea making and tasting. Many of the people who watched the live broadcast were young people. How to catch these new consumers became her biggest concern.
Lin Lijuan told reporters that the products they developed for young consumer groups have achieved good sales online, and through live streaming, some young consumers will also come to physical stores to drink tea.
At present, the passenger flow has gradually recovered, and her tea shop has become lively again.
Lin Lijuan, Chairman of Fujian Linjia Tea Mansion Development Co., Ltd.: Our side is 300 square meters, 5 boxes and 1 hall. We are basically full on weekends. If the turnover is small, it will be more than 200,000 yuan per month. Five hundred thousand yuan.
Online is a trend. Through the epidemic, we can think earlier about how to connect with young people online.
The peak of the chief expert of the modern tea industry technology system in Fujian Province: Internet celebrities bring the goods live, the marketing model is innovative, and another innovation is product innovation. The development of new products suitable for young consumer groups, such as new tea drinks and portable tea drinks, meets The younger generation's demand for the upgrading of tea products has better appearance and richer taste, similar to this product innovation.
Tea companies seeking to go public, "A-share tea company first share" or the future
my country is the world's largest tea producer and tea consumer market. However, in the A-share market, the number of listed tea companies is still zero.
Recently, the news that China Tea and Lancang Ancient Tea sprinted into A shares attracted market attention. Is the "first listed A-share tea company" coming?
A few days ago, China National Tea Co., Ltd. and Lancang Ancient Tea Co., Ltd. submitted listing applications to the Shanghai Stock Exchange and Shenzhen Stock Exchange respectively.
The prospectus shows that China Tea is currently the only state-owned enterprise in my country’s tea industry. The actual controller is COFCO. From 2017 to 2019, its operating income was 1.229 billion yuan, 1.490 billion yuan, and 1.628 billion yuan; the average annual compound growth rate was 15.09%.
According to the prospectus of Lancang Ancient Tea, it is mainly based on Pu'er tea products. Its revenue and net profit have gradually increased in the past three years. It is worth noting that the gross profit margin of Lancang Ancient Tea’s mature tea products is nearly three years. Over the years have exceeded 70%.
Statistics from the China Tea Circulation Association show that the tea consumption market is very broad. Domestic tea consumption increased from 988.1 million tons in 2010 to 2.0256 million tons in 2019, with an average annual compound growth rate of 8.30%.
In 2019, tea sales in the domestic market reached 273.95 billion yuan. However, in the capital market, the market scale of nearly 300 billion has not brought the tea industry the same attention as liquor.
Industry insiders believe that the listing of tea companies will help improve the standardization and concentration of the industry, but in the short term, it is unlikely that "Moutai in tea" will emerge.
Shen Junhong, founding partner of Shenzhen Shanglong Fund Management Co., Ltd.: Although both tea and wine are consumer goods, there are essential differences between the two. The wine making process is very skilled, and the tea making process has not yet reached standardization.
China's geographical differences are relatively large, and once the taste is formed, it is difficult to change, so it is difficult to open new markets.
Therefore, when investing, it is necessary to carefully consider the problem of inability to mass production and industrialization.