From deep exploration of product innovation to aesthetic breakthroughs in packaging design, from flexible price strategy adjustments to cross-industry collaborations in marketing activities... In recent years, the new tea drink sector has reached new heights in the domestic market. Since 2023, 52,000 new tea-related restaurants have been established across the country, creating an intensely competitive landscape of "thousands of stores competing side by side."

At the same time, according to iResearch, the growth rate of the domestic new tea drink market will slow down to 13.4%, 6.4%, and 5.7% from 2023 to 2025, respectively. The intensifying competition combined with a slowing growth rate and a saturated domestic market has led more and more new tea drink brands to turn their attention overseas. In a short time, both established brands with extensive international experience and emerging brands stepping into the global market have accelerated their global expansion to seek new growth and breakthroughs.

But where is the real differentiation for new tea drink brands venturing abroad? Is it the continued innovation in tea technology or deeper localization? This case study uses  CHAGEE, an innovator in modern Oriental tea, as an example to explore how new tea brands can overcome the challenges of differentiation, standardization, and localization to achieve global growth.

01 Brand Differentiation and Focus on Fresh Leaf Milk Tea

As a latecomer in the rapidly emerging new tea drink sector, CHAGEE has made a remarkable impact in recent years, boasting a global registered membership of over 130 million. According to industry data, in Q1 2024, CHAGEE's single-quarter GMV exceeded 5.8 billion RMB, and by May 2024, the brand's global store count surpassed 5,000. It's expected that Bawang Chajij's GMV for the whole year of 2024 will exceed 20 billion RMB.

Looking at the timeline, CHAGEE didn't enter the market early compared to other tea drink brands. When it opened its first store in November 2017 on Wuyi Road in Kunming, the domestic tea drink market was already filled with various fruit tea brands. However, despite such a saturated and competitive market, CHAGEE was able to find its footing with the differentiated positioning of "fresh leaf milk tea."

Looking back at the development history of ready-made tea drinks, we see an evolution from the 1.0 powdered tea era to the 2.0 small-ingredient era, then the 3.0 dessert tea era, and now the 4.0 modern Oriental tea era. Behind each of these changes is the increasing health awareness of young consumers. However, CHAGEE'S success lies not only in its precise capture of this trend and differentiated positioning but also in its innovative solution of "technology + standardization" to sustain growth.

In recent years, the competition in the tea drink sector may appear to be a marketing battle, but in reality, it's a battle of internal capabilities. The key to large-scale development in the tea drink industry lies in how to standardize the production process and quality control to ensure that every cup of tea maintains consistent taste and quality. To solve this, CHAGEE drew inspiration from the development history of modern coffee, utilizing the latest automated tea-making equipment to address multiple issues in the production process, including safety, health, efficiency, and standardization. This has reduced the flavor error rate of each cup of tea to 2‰, and the average service time has been reduced to 8 seconds per cup, creating a modern Oriental tea that better suits contemporary tastes.

With its differentiated brand positioning and modern tea technology innovation, Bawang Chajij has created a series of unique and stable products like Boya Juexian with a fresh and delicate taste, and Wanli Mulian with a rich and smooth flavor, which have contributed to high repeat purchase rates and established a solid foundation for its global expansion.

02 Global Expansion Strategy: Seizing International Market Strongholds

As early as 2019, CHAGEE began expanding into overseas markets, with its first store successfully opening in Malaysia. Over the next few years, it steadily expanded into Southeast Asia, entering markets such as Thailand and Singapore. As of now, CHAGEE has more than 5,000 stores globally, and its global strategy of "Oriental Tea, Connecting the World" seems to be progressing without any major obstacles. But how to further build the overseas market growth curve? CHAGEE has provided new insights after some exploration.

From a strategic perspective, entering the U.S. market is of monumental significance for CHAGEE'S global expansion. Once successfully established, the brand’s advantages could be extremely significant, further benefiting Southeast Asia and other regions. However, quickly capturing a leading position in the global market is not an easy task. The Hong Kong market, as a "gateway" to the international market, has long been a favorable location for new tea brands testing Tier 1 international markets. With its superior geographical location and international business environment, Hong Kong has become the ideal springboard for many brands.

In selecting its first store location in Hong Kong, CHAGEE made a significant investment in prime real estate, choosing a high-traffic area in the Tsim Sha Tsui K11 Art Mall. However, merely relying on a great location isn’t enough to ensure success. The key to Bawang Chajij's ability to quickly establish its brand image and build strong local connections lies in how it leveraged the grand opening event of its first Hong Kong store.

As a trusted partner in CHAGEE'S global expansion journey, Cyberklick helped CHAGEE launch its brand presence in Hong Kong in September 2024. Using KOL (Key Opinion Leader) marketing, Cyberklick orchestrated a full-spectrum social media campaign on platforms such as Instagram, Facebook, and Xiaohongshu (Little Red Book) to amplify CHAGEE'S brand visibility.

Cyberklick's brand operations expert, Cecilia Chen, explained: "With the rapid penetration of platforms like Xiaohongshu, TikTok, and Instagram, global user perception patterns are accelerating, and there is a clear shift toward online consumer engagement. KOL marketing serves as a key link between the brand and consumers, quickly transmitting brand values, sparking emotional connections, guiding consumer trends, and accelerating brand localization.

Cecilia Chen further elaborated on KOL selection: "While top-tier KOLs have the largest fan bases, data from our past campaigns shows that partnering with more specialized mid-tier KOLs can bring higher conversion rates. So, based on our marketing data, we matched CHAGEE with different types of KOLs: mid-tier KOLs/KOCs during the pre-launch phase to build brand awareness, top and mid-tier KOLs during the peak period to elevate brand positioning, and mid to lower-tier KOLs/KOCs during the sustained phase to drive strong brand experience."

On September 28, 2024, CHAGEE'S first Hong Kong store officially opened, marking a new milestone in its global journey. As Chinese new tea drink brands compete with international players in areas such as brand influence, product innovation, market insights, and creativity, the comprehensive competition is just beginning. Moving forward, Cyberklick will continue to support Chinese new tea brands by focusing on differentiation, localization, automation, and data analytics, helping them navigate the challenges of differentiation, standardization, and localization to achieve new global growth.