Milk tea brand proves all the rage in Hunan

For Changsha University students Zhang Zhuyuan and Chen Huimin, buying branded tea has almost become second nature when hanging out at shopping centers.

They also take pictures of the tea and are eager to post them on social media platforms to show their friends they have tried a new product.

"It tastes nice and not too sweet and it also looks pretty, perfect for social media," they said.

On different social platforms, there are a large number of posts, of which drinks and snacks from the brand taste the best with countless photos.

Some also give ratings for different drinks, while others say they enjoy several cups a day while visiting Changsha.

China's tea culture has undergone drastic changes in recent years as companies have rebranded the once-staid beverage as a high-end, fresh and healthy consumer experience. The resulting products, known colloquially as "new-style teas", are big business. According to research firm iiMedia Research, the value of China's new-style tea market is expected to reach 374.93 billion yuan in 2025, with 26.2 percent of consumers in 2022 likely to consume more new tea beverages in the future.

Sun said that from the beginning, they wanted to incorporate traditional Chinese culture and aesthetics into its products. The brand logo is an image of a traditional Chinese woman and the company has chosen to give its products poetic names, while the decor of its stores all reflect traditional Chinese culture, she said.

Meanwhile, the company also offers traditional Chinese service and treats its customers like guests.

The company did not hit the ground running at the outset. It really started becoming popular in 2018 and 2019 as more people born after the 1990s grow up and become prouder of national culture, she said.

She also credits the company's success to the good business environment in Changsha, especially in terms of fiscal support.

As Changsha focuses on expanding its night economy and making it an even more popular travel destination, it has attracted more tourists to the city, she said.

To cash in on the tourism boom, the brand's stores in popular business centers are open till 2 am, while those in airports and railway stations open up at 6 am.

Meanwhile, the immense popularity of the brand has also created some misunderstandings and even criticism.

Sun said she has learned to view online critique in a more calm and objective way, but is more determined than ever to be her true self.

The company is not eager to expand its scale too fast and will continue to open direct sales stores only to control the quality of its products, she said.

Chayan Yuese is also diversifying its product range.

In 2022, it began marketing coffee brand Yuanyang, and in September, it launched lemon tea brand Good MoreNing. In Mandarin Chinese, ningmeng means lemon.

The coffee house now has more than 90 stores and the lemon tea brand has more than 30 sites, she said.

"They are doing okay as competition in both sectors is fierce, and we want to let our teams explore new possibilities," she said.

Meanwhile, the company is also busy launching a series of side products, such as snacks, tea bottles, clothing, bags, cards and tea bags.

Sun said these products are also making a profit and her team is working to diversify upcoming new products.

In September, the company invested 520 million yuan in building a research and development factory in Changsha.

Sun said the company views it as long-term investment to develop core technologies used in its shops.

She said the company does not have any plan to expand overseas for the time being and will only focus on direct sales.

However, she is optimistic about the milk tea industry, which is still far smaller than the coffee sector in terms of market value.