An Exhaustive Exploration of Cha Yan Yue Se: Triumphs of a Bubble Tea Mogul in Changsha

Alex Lew, CFA
4 min readOct 2, 2023

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In the bustling city of Changsha, Hunan, resides a bubble tea brand that has recently been on the lips of every young connoisseur of refreshing beverages — Cha Yan Yue Se. This brand, with its roots deeply embedded in the city’s culture, has gained an impressive following owing to its delightful yet pocket-friendly bubble tea concoctions. This comprehensive analysis aims to dissect the elements that have propelled Cha Yan Yue Se to its current status, delving into its product array, business blueprint, and strategic maneuvers.

The ethos of Cha Yan Yue Se’s expansion blueprint is underpinned by a prudent and long-term vision. Rather than chasing ephemeral success in unfamiliar territories, the brand chooses to solidify its stronghold in its bastion in Changsha while cautiously extending its tendrils into new markets. This approach, while seemingly conservative, has engendered a robust brand image and an unwavering loyalty among its clientele.

The trajectory of Cha Yan Yue Se elucidates a brand that is as mindful of its roots as it is ambitious about its future. Through a blend of local dominance and cautious expansion, it showcases a model that prioritizes sustainable growth over transient success. In a market that often witnesses the fleeting blaze of brands, Cha Yan Yue Se’s methodical pace promises a long-lasting imprint on the bubble tea industry.

Central to Cha Yan Yue Se’s burgeoning popularity is its ability to offer delightful bubble tea that doesn’t necessitate a splurge. A medley of flavors and toppings awaits the customers, appeasing a myriad of taste preferences. The brand’s insistence on premium-grade ingredients is noteworthy; the use of imported Ceylon black tea, fresh milk from Nestle, and pure animal cream from Anchor underscores its commitment to quality. Their drink concoctions predominantly follow the formula of “tea base + milk + cream + nuts” or a simpler “tea base + milk”. Beyond the captivating flavors, the brand extends gestures like birthday vouchers and enticing discounts, for instance, a half-price offer on a second cup every Wednesday and on rainy days, making the indulgence a bit sweeter.

An Array of Liquid Indulgences

With a substantial roster of 32 standard offerings, complemented by seasonal additions in the summertime, Cha Yan Yue Se has a potion for every palate. From traditional tea bases to innovative new blends, the brand ensures that every visit can be a new gustatory adventure.

Strategic Outposts in a Bustling Urban Landscape

The smart placement of Cha Yan Yue Se outlets in high footfall zones across Changsha has been instrumental in rapidly amplifying brand awareness and market infiltration. This dense network of stores not only enhances brand visibility but significantly cuts down waiting time for customers, a critical factor in retaining the impatient urban clientele.

Capitalizing on Changsha’s Digital Stardom

Changsha’s emergence as a cradle for internet-famed brands hasn’t gone unnoticed by Cha Yan Yue Se. By situating itself amidst this digital buzz, the brand has artfully crafted an “exclusive” aura around itself. This is further amplified by engaging storytelling and adept use of major social platforms to keep the conversations buzzing and the brand trending.

Meticulous Business Blueprint

Drawing parallels with the 7–11 model, Cha Yan Yue Se’s business ethos is anchored in upholding superior quality and service across all outlets. The brand has trodden cautiously on the expansion path, with a sparse presence beyond Changsha in cities like Changde, Wuhan, and Shenzhen. This conservative growth tactic has been instrumental in preserving the brand’s sterling image and fostering a loyal customer base.

Cost-Effectiveness Approach

Renowned for its presence in the bustling bubble tea market of Changsha, Cha Yan Yue Se has meticulously crafted a pricing paradigm that emphasizes cost-effectiveness without compromising the caliber of its offerings. The spectrum of bubble tea concoctions proposed by the brand is priced within a bracket of RMB 12 (USD 1.9) at the lowest tier, ascending to RMB 26 (USD 4) for the premium selections, with the median price hovering around RMB 15–16 (USD 2.3–2.5). This pricing architecture has enabled Cha Yan Yue Se to resonate with a diverse clientele, notably the youth, who often exhibit price sensitivity.

Alongside its pocket-friendly price tags, Cha Yan Yue Se extends a suite of promotional enticements to magnetize customers. The brand, for instance, celebrates customers’ birthdays with special vouchers and tempts them with discounts such as a 50% reduction on the second cup every Wednesday and on drizzly days. These marketing gambits are designed not only to coax customers into sampling Cha Yan Yue Se’s creations but also to foster a culture of recurrent patronage.

Drawing a comparison with its adversaries like Hey Tea and Nayuki Tea, which cater to a higher-end market segment with their price range of RMB 20–30 (USD 2.9–4.4), Cha Yan Yue Se’s pricing doctrine distinctly sets it apart. By proffering superior quality bubble tea at more accessible prices, it has successfully etched a unique space for itself amid the fiercely competitive bubble tea landscape in Changsha.

Worth mentioning is an announcement from Cha Yan Yue Se in January 2022 regarding a price augmentation, attributed to the swell of inflation and escalating raw material expenditures. Despite this upward adjustment, the core essence of Cha Yan Yue Se’s pricing tactic remains anchored in affordability, continually striving to deliver commendable value to its patrons.

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Alex Lew, CFA
Alex Lew, CFA

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