Aiming at a 100-billion-dollar market
It is reported that Wancha is a self-branded tea drink launched by Wanda Film in its cinemas, including independent stores and integrated stores with Costa Coffee.
not only sells popcorn, the film industry giant is increasing its presence in the milk tea market.
Sky Eye Check shows that Dalian Wanda Group Co., Ltd. has recently applied to register multiple "Wancha" trademarks. The international categories include beer beverages, convenience foods, kitchen sanitary ware, etc. The current trademark status is awaiting substantive review. It is reported that Wancha is a self-owned brand of tea launched by Wanda Film in its cinemas, including independent stores and integrated stores with Costa Coffee.
It’s not just Wanda that is crossing borders. In June last year, China Post Pharmacy, a pharmaceutical retail business of China Post Group, opened a milk tea shop - Post Oxygen Tea under the sign of one of its stores in Fuzhou City, Fujian Province. The milk tea market, which has attracted many leading companies to cross borders, is booming. The market size of new milk tea reached 113.6 billion yuan in 2020, and some institutions predict that it will reach 340 billion yuan in 2025.
uses its own offline traffic
It is worth noting that as early as 2017, Wanda Film signed a strategic agreement with COSTA to reach an agreement on the establishment of joint brands and in-depth cooperation. In 2020, the cooperation between the two parties will be deepened again and a new model will be launched - Wancha and COSTA Quick Selection Fusion Store. At that time, reports mentioned that there were more than 70 Wancha stores nationwide.
It is reported that Wancha will be presented in two forms, one is a fusion store in cooperation with COSTA, and the other is Wancha’s independent store. In terms of products, Wancha is characterized by "self-operated innovation + selected tea sources", covering milk tea, fruit tea, cheese tea, etc. In terms of price, Wancha’s drinks are basically priced at around 19 yuan, while cheese tea, fruit tea and other categories are priced at 26 yuan.
In fact, what really brings high gross profits to Wanda Movies is the non-box office business with popcorn as its core. Taking Wanda Film's 2021 semi-annual report as an example, the company's movie viewing revenue was 4.04 billion yuan, accounting for 57.44% of revenue, accounting for only 33.36% of profit, and gross profit margin was 13.38%; merchandise and catering sales revenue was 778 million yuan, accounting for 10% of revenue. Only 11.06%, accounting for as high as 31.67% of profits, and the gross profit margin was 65.99%.
The reason why Wanda Movies entered the milk tea market is undoubtedly because it sees the broad market prospects and hopes to use its offline traffic advantage to increase non-box office revenue. According to
data, the market size of my country's tea industry in 2020 will be 410.7 billion yuan, with a compound growth rate of 9.8% from 2015 to 2020. Among them, new tea drinks began to grow rapidly in 2016. The market size will reach 113.6 billion yuan in 2020 (the compound growth rate from 2015 to 2020 is 21.9%), and it is expected to reach 340 billion yuan in 2025. New tea drinks will become the largest segment of the tea industry. Industry insiders believe that the current market penetration rate of new tea drinks still has considerable room for development.
But this tempting cake has attracted many players. In recent years, various Internet celebrity tea brands have sprung up, making it difficult for Wancha to stand out. According to CIC Consulting data, as of the end of 2020, there were approximately 3,400 high-end freshly made tea shops in China, of which approximately 100 high-end freshly made tea drink chain stores operated approximately 2,500 stores across the country, with a chain rate of 73.53%. The market share of the top five market players of high-end tea brands is approximately 58%, and the tea market share of Heytea and Naixue is approximately 46.6%.
Seeking new growth points
In the face of sporadic epidemics in many parts of the country, various film companies are facing greater operating pressure, and Wanda Film, the industry leader, is no exception.
The box office revenue of leading film investment companies in March
The two data for this year and the same period last year intuitively reflect the current operating difficulties of theaters. According to Beacon Professional Edition data, Wanda Film’s domestic box office in March this year was only 175 million yuan, only half of the same period last year. Faced with the above situation, Wanda Films has begun to focus on creating new growth points in addition to building a solid foundation of theater lines and content.
Taking the Spring Festival as an example, Wanda launched products such as Year of the Tiger series plush dolls, Fat Tiger series blind boxes, and Tiger Keychains during the movie period.At present, the company's derivatives are mainly divided into four series, namely, film and television animation series, national style and national implements series, great country heavy equipment series and trendy figure series. The company will also summarize the Spring Festival experience, continue to increase product research and development, and explore more innovations The merchandise is sold in theaters, continuously increasing sales revenue.
script killing has also become an expansion option. Wanda Film introduced in an institutional survey in February this year that this year the company will develop the entire industry chain from content creation, distribution, and channels. Wanda Film and Television will cooperate with IP-licensed scripts, and theaters will operate through self-operation, joint venture and other models. The company will also continue to promote the expansion of multi-functional cinemas. In the future, the company hopes to upgrade Wanda Cinema into a small comprehensive entertainment complex to innovate and increase revenue.
(China Securities Journal)
