On January 1, 2025, Mixue Ice Cream & Tea submitted its third listing application to the Hong Kong Stock Exchange and was officially listed on March 3, becoming the fourth listed company in the new tea drink sector after Nai's Tea. This brand, known for its "2 - yuan ice cream and 4 - yuan lemon water", has successfully tapped into China's sinking market. As of September 30, 2024, it had opened nearly 4,000 overseas stores in 11 countries, with its distribution network covering over 560 cities in four overseas countries. These figures highlight the deep connection between its globalization strategy and capitalization process. Mixue Ice Cream & Tea aims to not only be the "King of China's sinking Market" but also prove its potential as a "global supply chain giant" to the capital market.
Overseas Expansion: Two - track Strategy from Southeast Asia to Developed Countries
Mixue Ice Cream & Tea's globalization follows a "Southeast Asia first, then developed countries" path, with significant differences in speed and strategy across markets.
Southeast Asia: Low - price Strategy and Supply Chain Blitzkrieg
Southeast Asia is Mixue Ice Cream & Tea's first overseas testing ground. By the third quarter of 2024, it had over 2,600 stores in Indonesia. This rapid expansion is driven by its franchise model: headquarters provides a unified supply chain, and franchisees bear store operation costs. According to Mixue Ice Cream & Tea's website, an initial fluid funds of over 210,000 is required to open a store. Staff say that headquarters provides raw materials, ensuring product uniformity and taste, with a gross profit margin of 55% - 60%. Mixue Ice Cream & Tea's prospectus shows an 82.5% gross margin from franchising and related services in 2024.
In Southeast Asia, Mixue Ice Cream & Tea is the "king of cost - effectiveness". In Hanoi, Vietnam, stores sell over 500 cups daily on average, reaching over 1,000 on good days. Popular drinks like aloe vera lemon tea (17,000 Vietnamese dong, about 4.8 yuan) are 30% - 50% cheaper than local chains like Tocotoco. Ice cream (10,000 Vietnamese dong, about 2.8 yuan) is also a hit. In Vietnam, Mixue Ice Cream & Tea's drinks are priced at 3 - 6 yuan, and in Indonesia at 3.7 - 4.6 yuan, much lower than mid - to - high - end brands like Nai's Tea and Hi - Tea, and significantly below competitors like Chatime (average 20 yuan). CEIC data shows that in Indonesia, with a monthly income of about 187 USD per person in 2024, Mixue Ice Cream & Tea's single - cup price is only 0.3% - 0.6% of daily income. In Vietnam, with a 2023 per capita GDP of about 4,200 USD (one - third of China's), consumers are price - sensitive, making Mixue Ice Cream & Tea's "6 - yuan pricing strategy" a perfect fit.
Source: Sohu News
Supply Chain Localization Battle
An Indonesian local said that early on, OPPO and vivo phone dealers transformed some retail stores into Mixue Ice Cream & Tea outlets or added bubble tea stalls. This model works because both phone retail and bubble tea benefit from high - foot - traffic, bustling commercial areas. This helped Mixue Ice Cream & Tea quickly gain a foothold and expand. The company's self - operated warehousing and dedicated distribution network cover over 560 cities in four overseas countries.
In Southeast Asia, investments in a Philippine coconut fruit processing plant and a Vietnamese warehouse have boosted delivery efficiency to "48 - hour delivery" and kept logistics costs at 4.5% of revenue, below the industry average of 8%.
Global Sourcing Network Covers 6 Continents | Source: Mixue Ice Cream & Tea
Developed Countries: Mixue Ice Cream & Tea's Premium Trial
Unlike the rapid expansion in Southeast Asia, Mixue Ice Cream & Tea adopts a more cautious strategy in Australia.
Australia: New Challenges in the Franchise Model
In early 2024, Mixue Ice Cream & Tea opened its first Sydney store but faced "culture shock". Some Australian consumers reported issues like unsuitable sweetness, icy taste, unripe taro balls in drinks, and a plastic - like taste, possibly due to local water quality. In terms of quality control, the Sydney store owner revealed that without a local supply chain, most materials are shipped from China, except for items like milk that are sourced locally. This contrasts with the robust supply chain for domestic franchises, leading to higher costs and quality control risks. Additionally, the unexpectedly high customer turnout in the first week put pressure on raw material supply and staff drink - making skills.
Currently, most employees are part - time university students, with over six working daily at the Sydney store, earning the minimum wage of 21 Australian dollars per hour for a 10 - hour workday. Daily rent in Sydney CBD is about 300 Australian dollars, plus storage, logistics, and other expenses, totaling at least 1,500 Australian dollars. At a trial - operation average price of about 2.5 Australian dollars per cup, the store needs to sell 600 cups daily (60 per hour) to break even. Maintaining such high sales is a challenge. Sydney store employees also mentioned that some local bubble tea shops don't strictly follow the minimum wage requirement. Mixue Ice Cream & Tea aims to comply with regulations while maintaining cost advantages, a significant hurdle.
Global Story to Support Listing Valuation
Mixue Ice Cream & Tea's prospectus shows its valuation logic has shifted from a "Chinese tea drink brand" to a "global catering supply chain platform", highlighting the capital market's imagination for the supply chain story.
Mixue Ice Cream & Tea's Real Ace: Supply Chain
Mixue Ice Cream & Tea has five production bases in Henan, Hainan, Guangxi, Chongqing, and Anhui, covering about 790,000 square meters with an annual output of 1.65 million tons, supplying seven categories of ingredients. Its self - operated logistics system includes 27 warehouses (about 350,000 square meters), covering 31 provinces, 300 cities, 1,700 counties, and 4,900 towns in mainland China, and seven localized warehouses (about 69,000 square meters) in Southeast Asia. For example, coconut fruit from Chengdu can reach Jakarta stores within 48 hours.
Cost Advantage: Mixue Ice Cream & Tea's logistics cost ratio is 3.8%, below the industry average of 7%. Its self - built bases and logistics, along with a global procurement network, reduce procurement costs by 10% - 20% compared to the industry. Over 60% of ingredients supplied to franchises are self - produced, with core ingredients at 100%, further cutting costs and stabilizing the supply chain.
Low Price Isn't the End of Globalization
Mixue Ice Cream & Tea's listing marks a shift from "internal expansion" to "global competition" for Chinese new - consumer brands. Its supply - chain - led, franchise - backed strategy has proven replicable in developing markets but faces localization challenges in developed countries.
The real test for Mixue Ice Cream & Tea is whether it can overcome geopolitical and localization bottlenecks through listing - funded supply chain localization, transforming "Made in China" into "Made Globally". Achieving 100% raw material self - sufficiency in Southeast Asian factories and setting up R&D centers in developed countries to improve product formulas could unlock a larger market than China.
EqualOcean believes Mixue Ice Cream & Tea must show that low - pricing isn't its only edge. In the tea drink industry, only companies that turn supply chain advantages into brand value moats can sustain long - term success.
