Take a look at the "money-making" strength of Mixue Bingcheng. According to financial reports in the past few years, revenue in 2019 was less than 3 billion, reached 4.6 billion in 2020, and directly exceeded 10 billion in 2021, an increase of 121% year-on-year. Net profit has also been rising steadily, maintaining 400 million to 600 million from 2019 to 2020, and reaching 1.9 billion in 2021.
In the past few years, physical business has been impacted, but Mixue Bingcheng's business seems to be getting bigger and bigger, with both revenue and profits achieving significant growth. Even in the first quarter of 2022, Mixue Bingcheng's profit reached 390 million, which shows its profitability.
You should know that other companies in the same industry are facing losses. In 2021, Naixue's Tea lost 145 million yuan, and in the first half of this year, it suffered a loss of 249 million yuan. In addition, Heytea, which is known for its high-end, has also declined successively. However, as of the end of the first quarter of this year, the number of Mixue Bingcheng stores has reached 22,276. Sometimes, two Mixue Bingcheng stores can even be seen in one street.
So, why can Mixue Bingcheng, which is also a new tea drinker, break the edge strongly? Not only is there no loss, but the number of stores is also opening more and more? Comprehensive analysis shows that there are mainly the following reasons:
low price attracts a large number of consumers
Contemporary young people have indeed "covered their pockets tighter and tighter", and there have been different degrees of consumption downgrading. In this regard, Mixue Ice City, which has lower prices and high quality, does have more advantages, so it seems that there is never a shortage of customers in front of Mixue Ice City's stores.
can drink a cup of milk tea and a cup of coffee for a few dollars, and the consumer group of Mixue Bingcheng tea drinks is also more popular. With the support of many consumers, there is a source of funds. As a freshly made beverage chain, it is natural to expand the number of stores.
operating mode is different
Mixue Bingcheng's model is "direct sales + franchise", of which franchise contributes more than 90% of the revenue. Among the more than 20,000 stores in Mixue Bingcheng, the number of franchise stores is as high as 22,000, and there are less than 50 direct-operated stores. Naixue’s Tea has achieved a completely self-operated model, which is even more costly.
According to financial report data analysis, 96% of Mixue Bingcheng's revenue comes from franchise sales revenue, of which food and packaging materials account for more than 80%. According to media reports, in the past year, Mixue Bingcheng sold more than 3.5 billion cups to franchisees, and more than 8,000 tons of tea sold. Mixue Bingcheng itself has a huge supply chain, which greatly reduces the cost of raw materials.
In addition, Mixue Bingcheng is also actively developing overseas markets and expanding its business scope. Mixue Bingcheng has seen the market growth potential of freshly made tea in Southeast Asia, and Vietnam, , Indonesia, have also opened hundreds of stores. Mixue Bingcheng has also launched a coffee brand and an ice cream chain brand. In the future, overseas markets, coffee and ice cream chain brands may become new business growth points for Mixue Bingcheng.
The real economy has been greatly impacted by the epidemic in the past two years. Although online orders have maintained a growth trend, most delivery orders have to rely heavily on third-party channels. Moreover, compared with offline consumption, online channels have thinner profits, so tea beverage brands still need to find ways to increase the number of offline stores’ orders. Only when the single-store profit model is mature can they gain a foothold in the highly inclined tea beverage market.
