PPOSITE A UNIVERSITY campus on the ☐ outskirts of Jakarta, motorbikes line the front of Ricky Salim's ice-cream and tea store. One of thousands of Mixue franchise owners across Asia, Mr Salim says his business is so good he hopes to open more outlets this year. Mixue, a Chinese firm which built its brand selling flavoured teas and soft-serve ice-cream in smaller Chinese cities with relatively modest average incomes, is exporting its model across South-East Asia. Its nearly 22,000 franchised stores worldwide, by early last year, made it the fifth-largest fast-food chain in the world by outlet, behind McDonald's, Subway, Starbucks and KFC. Part of the reason for Mixue's success is that it sells rising Asia's favourite drink: bubble (or "boba") tea, a milky tea containing chewy tapioca balls. In China, the market for these newfangled, flavoured teas was twice that for coffee in 2021, with a $20bn turnover, according to Momentum Works, a research firm in Singapore. As growth has slowed in China, bubble-tea brands have set their sights on South- East Asia, where the market was worth $4bn. Several other large, Chinese, ready-made tea brands, including HeyTea, Nayuki Tea, ChaGee and Happy Lemon, have also moved into the region.

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter14: Marketing Channels And Supply Chain Management

Section: Chapter Questions

Problem 15DRQ

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Learning Activity 5: Expansion in Global Markets Discussion Questions: Bubble (or “boba”) tea is a milky tea containing chewy tapioca balls. It is has gained huge popularity in markets across Asia and is now also in North America and Europe. In your view will the recent exponential growth continue, and will it be at the expense of other drinks such as traditional black or green tea or coffee? Can global markets continue to support its growth, and what age group is mainly targeted?

Transcribed Image Text:PPOSITE A UNIVERSITY campus on the ☐ outskirts of Jakarta, motorbikes line the front of Ricky Salim's ice-cream and tea store. One of thousands of Mixue franchise owners across Asia, Mr Salim says his business is so good he hopes to open more outlets this year. Mixue, a Chinese firm which built its brand selling flavoured teas and soft-serve ice-cream in smaller Chinese cities with relatively modest average incomes, is exporting its model across South-East Asia. Its nearly 22,000 franchised stores worldwide, by early last year, made it the fifth-largest fast-food chain in the world by outlet, behind McDonald's, Subway, Starbucks and KFC.