{"id":62935,"date":"2025-12-17T20:39:08","date_gmt":"2025-12-17T12:39:08","guid":{"rendered":"https:\/\/daxueconsulting.com\/?p=62935"},"modified":"2025-12-17T20:41:53","modified_gmt":"2025-12-17T12:41:53","slug":"chinese-beverage-brand-mixue","status":"publish","type":"post","link":"https:\/\/daxueconsulting.com\/chinese-beverage-brand-mixue\/","title":{"rendered":"How Chinese beverage brand Mixue successfully scales across emerging-tier cities"},"content":{"rendered":"\n<p>Mixue Group (\u871c\u96ea\u51b0\u57ce\u80a1\u4efd\u6709\u9650\u516c\u53f8) is a freshly-made beverage company. It has two brands: the tea drinks brand Mixue (\u871c\u96ea) and the coffee brand Lucky Cup (\u5e78\u8fd0\u5496). On March 3<sup>rd<\/sup>, 2025, the Group went public on the Hong Kong Stock Exchange and its shares surged by\u00a0<a href=\"https:\/\/www.bbc.com\/news\/articles\/c625n63epyzo\">over 40%<\/a>\u00a0on the first trading day, receiving global attention. As of June 2025, it has <a href=\"https:\/\/wallstreetcn.com\/articles\/3754256?keyword=%E8%9C%9C%E9%9B%AA&amp;utm\">over 48,000 stores<\/a> in China and over 4,700 stores outside of China, making it the largest fast-food chain in the world by store count, even surpassing McDonald\u2019s, Starbucks, and Subway. The Group was able to achieve such success in the <a href=\"It%20produces%2060%25%20of%20its%20ingredients%20in-house.\">food and beverage industry in China<\/a> through its competitive pricing, low-cost franchise network, efficient supply chain management, and innovative marketing and branding strategies. Having a large presence in the\u00a0<a href=\"https:\/\/daxueconsulting.com\/tea-market-in-china\/\">tea market in China<\/a>, the Chinese beverage brand Mixue is expanding overseas.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Download our China F&amp;B White Paper<\/h3>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1542\" height=\"1074\" src=\"https:\/\/daxueconsulting.com\/wp-content\/uploads\/2024\/04\/FB-WP-cover.png\" alt=\"China F&amp;B white paper 2024\" class=\"wp-image-61588\" srcset=\"https:\/\/daxueconsulting.com\/wp-content\/uploads\/2024\/04\/FB-WP-cover.png 1542w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2024\/04\/FB-WP-cover-300x209.png 300w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2024\/04\/FB-WP-cover-800x557.png 800w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2024\/04\/FB-WP-cover-768x535.png 768w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2024\/04\/FB-WP-cover-1536x1070.png 1536w\" sizes=\"(max-width: 1542px) 100vw, 1542px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<script charset=\"utf-8\" type=\"text\/javascript\" src=\"\/\/js.hsforms.net\/forms\/embed\/v2.js\"><\/script>\n<script>\n  hbspt.forms.create({\n    region: \"na1\",\n    portalId: \"21091266\",\n    formId: \"0198d19d-779c-46ea-a72c-e35e05f4588d\"\n  });\n<\/script>\n<\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Mixue Group\u2019s history dates back earlier than McDonald\u2019s and Starbucks<\/h2>\n\n\n\n<p>Mixue Group\u2019s history\u00a0<a href=\"https:\/\/mixue.asia\/\">dates<\/a>\u00a0back to 1977, when Zhang Hongchao, a student at Henan University of Economics and Law, opened a small shaved ice shop named \u201cCold Snap Ice\u201d (\u5bd2\u6d41\u5228\u51b0) in Zhengzhou, Henan province. He started this as a part-time gig to help with his family finances. However, it didn\u2019t turn out well, eventually leading to its closure.<\/p>\n\n\n\n<p>In 1999, however, Zhang opened a second store and formally registered it as Mixue Bingcheng (\u871c\u96ea\u51b0\u57ce), meaning \u201choney snow ice city\u201d. This time it sold soft-serve cone treats and rapidly attracted nearby students and locals of low incomes. Over the years, it expanded by building centralized factories in 2012, introducing new products like bubble tea, and launching Lucky Cup in 2017. Since 2018, it started expanding to other countries, opening its first store in Vietnam.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Low costs and prices make Mixue accessible<\/h2>\n\n\n\n<p>Tea brand Mixue\u2019s flagship products, such as lemonade and milk tea, are priced between RMB 2 to 8 (about USD 1 or less), making them appealing amid the economic slowdown and accessible to a wide range of consumers.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img decoding=\"async\" width=\"800\" height=\"528\" data-src=\"https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Mixue-Lemonade-Milk-tea-800x528.png\" alt=\"Mixue\" class=\"wp-image-62938 lazyload\" style=\"--smush-placeholder-width: 800px; --smush-placeholder-aspect-ratio: 800\/528;width:480px;height:auto\" data-srcset=\"https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Mixue-Lemonade-Milk-tea-800x528.png 800w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Mixue-Lemonade-Milk-tea-300x198.png 300w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Mixue-Lemonade-Milk-tea-768x507.png 768w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Mixue-Lemonade-Milk-tea-1536x1013.png 1536w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Mixue-Lemonade-Milk-tea-2048x1351.png 2048w\" data-sizes=\"(max-width: 800px) 100vw, 800px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" \/><figcaption class=\"wp-element-caption\"><em>Source: RedNote, Mixue Bingcheng\u2019s Freshly-squeezed Lemonade (\u51b0\u9bae\u6ab8\u6aac\u6c34) and Milk Tea (Bubble Tea\u73cd\u73e0\u5976\u8336)<\/em><\/figcaption><\/figure>\n\n\n\n<p>This pricing strategy is possible due to the company\u2019s ability to keep costs low through supply chain optimization. Mixue Group controls its entire supply chain, from raw material sourcing to production and distribution.\u00a0<a href=\"https:\/\/www1.hkexnews.hk\/listedco\/listconews\/sehk\/2025\/0221\/2025022100009.pdf\">60%<\/a>\u00a0of the ingredients it supplies to its franchisees are self-produced. This reduces the costs and ensures consistent product quality. For example, its procurement costs for milk powder and lemon of the same type and quality\u00a0<a href=\"https:\/\/www1.hkexnews.hk\/listedco\/listconews\/sehk\/2025\/0221\/2025022100009.pdf\">were<\/a>\u00a010% and 20% lower, respectively, than the average of its competitors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Mixue focuses on emerging markets<\/h2>\n\n\n\n<p>As of September 30<sup>th<\/sup>, 2024, Mixue Group is the largest freshly-made drinks company in China and in the world in terms of number of stores. It&nbsp;has <a href=\"https:\/\/wallstreetcn.com\/articles\/3754256?keyword=%E8%9C%9C%E9%9B%AA&amp;utm\">over 48,000 stores<\/a> in China and nearly 5,000 stores outside of China.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Mixue Group has an extensive presence in lower-tier cities<\/h3>\n\n\n\n<p>In China, the Group focuses on emerging-tier cities. Henan, Guangdong, and Jiangsu have become key focus markets for Mixue due to their geographic advantages and urban structure:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Henan: Home to Mixue\u2019s headquarters, Henan is centrally located in China, making it highly convenient for nationwide expansion.<\/li>\n\n\n\n<li>Jiangsu: With a stable economy and relatively strong purchasing power in third- and fourth-tier cities, Jiangsu also serves as a strategic base to reach other cities and provinces in southeastern China.<\/li>\n\n\n\n<li>Guangdong: Similar to Jiangsu in terms of population structure and consumption level, but with a hotter climate that drives higher consumption frequency.<\/li>\n<\/ul>\n\n\n\n<p>The Group has succeeded in growing in lower-tier cities and rural areas due to the lower operating costs, untapped demand, and rapid expansion. The rent and labor costs are significantly lower in smaller cities, allowing it to keep its low-price strategy. Consumers in these areas have less access to trendy food and beverage options, making it an attractive choice. Moreover, its franchise model allows it to rapidly expand in low-tier cities, often outpacing its direct competitors such as Shuyi, Auntea Jenny, Good Me, and Cha Panda who focus on first-tier and second-tier cities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Mixue expands into emerging and developed overseas markets<\/h2>\n\n\n\n<p>With competition intensifying in lower-tier cities, Mixue Group is expanding to other countries. Most of its overseas stores are in Indonesia (2,667 stores) and Vietnam (1,304), which together generate\u00a0<a href=\"https:\/\/www1.hkexnews.hk\/listedco\/listconews\/sehk\/2025\/0221\/2025022100009.pdf\">around 70%<\/a>\u00a0of overseas revenue. It also has a presence in other regions beyond Southeast Asia, including South Korea and Australia.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Mixue\u2019s franchise model enables rapid expansion<\/h2>\n\n\n\n<p>Mixue Group\u2019s franchise model is a cornerstone of its success. According to Mixue Group\u2019s prospectus,\u00a0<a href=\"https:\/\/www1.hkexnews.hk\/listedco\/listconews\/sehk\/2025\/0221\/2025022100009.pdf\">99%<\/a>\u00a0of its stores are franchised as of September 2024. It charges a lower franchise fee, making it accessible to small business owners and enabling it to expand rapidly, especially in lower-tier cities. The initial budget fee\u00a0<a href=\"https:\/\/t.cj.sina.com.cn\/articles\/view\/6415504693\/17e64d53500101fu2i\">is<\/a>\u00a0about RMB 210,000, lower than Good Me\u2019s 230,000 for example.<\/p>\n\n\n\n<p>Moreover, Mixue Group\u2019s revenue mainly comes from selling supplies, including ingredients and packaging, and equipment, such as ice cream makers and refrigerators, to its franchisees, not retail sales.<\/p>\n\n\n\n<p>Outside of China, Mixue has another franchise model. In emerging overseas markets like Southeast Asia, it partners with powerful local distributors who are familiar with the market, resources, and channels, allowing Mixue to quickly replicate its model abroad \u2013 overcoming barriers in logistics, regulations, and cultural differences to achieve rapid market penetration.<\/p>\n\n\n\n<p>In developed overseas markets, such as Japan and South Korea, it has another approach. Given the fierce market competition and differing consumer preferences, it may avoid its dense domestic strategy, opting instead for flexible models and stronger local partnerships focused on product adaptation and brand localization.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img decoding=\"async\" width=\"936\" height=\"756\" data-src=\"https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Chinese-beverage-brand-Mixue-franchise-model-by-region.png\" alt=\"Chinese beverage brand Mixue\" class=\"wp-image-64085 lazyload\" style=\"--smush-placeholder-width: 936px; --smush-placeholder-aspect-ratio: 936\/756;width:666px;height:auto\" data-srcset=\"https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Chinese-beverage-brand-Mixue-franchise-model-by-region.png 936w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Chinese-beverage-brand-Mixue-franchise-model-by-region-300x242.png 300w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Chinese-beverage-brand-Mixue-franchise-model-by-region-800x646.png 800w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Chinese-beverage-brand-Mixue-franchise-model-by-region-768x620.png 768w\" data-sizes=\"(max-width: 936px) 100vw, 936px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" \/><figcaption class=\"wp-element-caption\"><em>Source: Daxue Consulting, Mixue\u2019s expansion approach in China and other overseas region<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Tea brand Mixue\u2019s mascot \u201cSnow King\u201d builds a fan base<\/h2>\n\n\n\n<p>Mixue has built a strong brand identity, particularly through its strong Intellectual Property (IP) strategy and viral marketing efforts. In 2018, it introduced Snow King (\u96ea\u738b), its snowman mascot and developed Snow King-themed stores, merchandise, and animated series. This makes the brand more approachable and helps build a deeper emotional connection with its fans.<\/p>\n\n\n\n<p>One of Mixue\u2019s most recognizable elements is its catchy theme song saying \u201cYou love me, I love you, Mixue Bingcheng is so sweet\u201d (\u201c\u4f60\u7231\u6211\uff0c\u6211\u7231\u4f60\uff0c\u871c\u96ea\u51b0\u57ce\u751c\u871c\u871c\u201d). It became a social media sensation, spreading on platforms like\u00a0<a href=\"https:\/\/daxueconsulting.com\/douyin-vs-tiktok\/\">Douyin<\/a>\u00a0(Chinese version of TikTok) and\u00a0<a href=\"https:\/\/daxueconsulting.com\/xiaohongshu-china\/\">Xiaohongshu<\/a>\u00a0(also known as RedNote), with netizens creating memes, covers and parodies, effectively promoting the brand for free.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Mixue leverages co-branding in China to refresh its experiences<\/h2>\n\n\n\n<p>To expand its consumer base and build a fun and refreshing experience, Mixue engages in\u00a0<a href=\"https:\/\/daxueconsulting.com\/co-branding-in-china\/\">co-branding in China<\/a>. For example, in 2024, Mixue teamed up with Garfield to launch a series of orange-colored drinks like the Cheese Milk Cap Osmanthus Tea and Osmanthus Glutinous Rice Tea, along with a packaging featuring Garfield and Snow King. Additionally, this collaboration introduced limited-edition merchandise like cups, fridge magnets, and Good Luck Machine toy, creating a sense of urgency for people to go to its stores.<\/p>\n\n\n\n<p>This collaboration coincided with the release of the movie Garfield on Children\u2019s Day on June 1<sup>st<\/sup>, 2025, appealing to both children and families alike. One RedNote user said, \u201cMixue collaborated with our childhood friend Garfield, and it looks absolutely stunning!\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img decoding=\"async\" width=\"3753\" height=\"2475\" data-src=\"https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Mixue-Garfield-co-branding-in-China.png\" alt=\"Chinese beverage brand Mixue\" class=\"wp-image-62937 lazyload\" style=\"--smush-placeholder-width: 3753px; --smush-placeholder-aspect-ratio: 3753\/2475;width:544px;height:auto\" data-srcset=\"https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Mixue-Garfield-co-branding-in-China.png 3753w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Mixue-Garfield-co-branding-in-China-300x198.png 300w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Mixue-Garfield-co-branding-in-China-800x528.png 800w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Mixue-Garfield-co-branding-in-China-768x506.png 768w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Mixue-Garfield-co-branding-in-China-1536x1013.png 1536w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2025\/03\/daxue-consulting-Mixue-Garfield-co-branding-in-China-2048x1351.png 2048w\" data-sizes=\"(max-width: 3753px) 100vw, 3753px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" \/><figcaption class=\"wp-element-caption\"><em>Source: RedNote, Mixue Bingcheng leverages co-branding with Garfiel<\/em>d<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Chinese beverage brand Mixue grows from a humble shop to a global beverage giant<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Mixue Group is the world\u2019s largest fast-food chain by store count, surpassing McDonald\u2019s, Starbucks, and Subway. As of June 2025, it has over 48,000 stores in China and over 4,700 stores abroad.<\/li>\n\n\n\n<li>Unlike its competitors like Cha Panda and Auntea Jenny, it focuses on <a href=\"https:\/\/daxueconsulting.com\/2025-china-emerging-tier-market-report\/\">China\u2019s emerging-tier city markets<\/a>.<\/li>\n\n\n\n<li>Its success lies in its low-cost franchise model and supply chain efficiency, innovative branding and marketing, and competitive pricing strategy.<\/li>\n\n\n\n<li>It follows a low-cost franchise model, making it accessible to small business owners. The initial investment required is about RMB 210,000, which is lower than its competitors. In 2012, it started building its centralized factories, producing 60% of its ingredients in-house.<\/li>\n\n\n\n<li>Mixue has built a strong brand identity through its mascot Snow King, viral theme song, and co-branding efforts. Its catchy theme song went viral on social media, and it collaborated with Garfield following the release of the Garfield movie.<\/li>\n\n\n\n<li>Mixue Group is known for its budget-friendly products, which especially appeals to\u00a0<a href=\"https:\/\/daxueconsulting.com\/lower-tier-city-consumers-in-china\/\">lower-tier consumers in China<\/a>, who have lower incomes and have less access to trendy\u00a0food and beverage options compared to higher-tier cities.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img decoding=\"async\" width=\"4000\" height=\"1400\" data-src=\"https:\/\/daxueconsulting.com\/wp-content\/uploads\/2024\/03\/1-2.png\" alt=\"Daxue Consulting banner\" class=\"wp-image-61245 lazyload\" data-srcset=\"https:\/\/daxueconsulting.com\/wp-content\/uploads\/2024\/03\/1-2.png 4000w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2024\/03\/1-2-300x105.png 300w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2024\/03\/1-2-800x280.png 800w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2024\/03\/1-2-768x269.png 768w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2024\/03\/1-2-1536x538.png 1536w, https:\/\/daxueconsulting.com\/wp-content\/uploads\/2024\/03\/1-2-2048x717.png 2048w\" data-sizes=\"(max-width: 4000px) 100vw, 4000px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 4000px; --smush-placeholder-aspect-ratio: 4000\/1400;\" \/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Mixue Group (\u871c\u96ea\u51b0\u57ce\u80a1\u4efd\u6709\u9650\u516c\u53f8) is a freshly-made beverage company. It has two brands: the tea drinks brand Mixue (\u871c\u96ea) and the coffee brand Lucky Cup (\u5e78\u8fd0\u5496). On March 3rd, 2025, the Group went public on the Hong Kong Stock Exchange and its shares surged by\u00a0over 40%\u00a0on the first trading day, receiving global attention. As of June [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":64086,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"episode_type":"","audio_file":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","date_recorded":"","explicit":"","block":"","filesize_raw":"","footnotes":""},"categories":[11],"tags":[3544,3542,14074],"daxue_industry":[],"class_list":["post-62935","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-research-china","tag-fast-food-chain-in-china","tag-food-and-beverage-in-china","tag-milk-tea-market-in-china"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Chinese beverage brand Mixue disrupts the industry with $1 drinks<\/title>\n<meta name=\"description\" content=\"Chinese beverage brand Mixue has built a strong brand identity through its strong Intellectual Property (IP) strategy and viral...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/daxueconsulting.com\/chinese-beverage-brand-mixue\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chinese beverage brand Mixue disrupts the industry with $1 drinks\" \/>\n<meta property=\"og:description\" content=\"Chinese beverage brand Mixue has built a strong brand identity through its strong Intellectual Property (IP) strategy and viral...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/daxueconsulting.com\/chinese-beverage-brand-mixue\/\" \/>\n<meta property=\"og:site_name\" content=\"Daxue Consulting - 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