Скачать или смотреть Dior Copy Brand for Premium Tea | Business | Sarthak Ahuja

A Chinese beverage chain copied Dior’s design and ended up scaling 24X in 3 years to reach 6000 stores...

It’s core product is milk tea - quite like the one we have in India - but with a subtle difference...

They put milk in their green tea, which has become such an “it” beverage, that the company’s annual profits are over USD 350 Mn...

The brand is called Chagee... and there are broadly three reasons for its sudden success...

👉🏼 The first is the product selection...

Just three products make over 60% of their sales - the Jasmine Green Milk Tea, Oolong Tea, and Ceylon Black Tea

And the reason they picked these flavours is because... there are no flavoured syrups and juices like you put in fruit based iced teas that require refrigeration and specialized logistics...

👉🏼 The second is its scale based on franchisees... 90% of its stores are franchisees...

The reason franchisees fail is because it’s difficult to maintain the same standard across outlets... and they open at sub-optimal locations...

But Chagee keeps tight control on site selection, and then pass on the rights to operate to a franchise operator because they have automated the tea making process to such a degree that each tea takes just 8 seconds to make.

Of course, the SOPs and audits are made with zero tolerance for non compliance... such that store closure rates are close to 1% per annum.

👉🏼 And the third is making a premium tea brand for tea lovers because there’s too much competition in coffee, and all tea brands are massy with no status attached to them.

The moment I saw their packaging, I was like, this is such a Dior rip off... so much that their cafes have this luxurious warm lighting, similar to what you see at luxury stores.

They have seemingly copied all elements of Apple’s design and that of Dior to a category that both those brands don’t exist in.

It now plans on listing on the NYSE, and this category is now gaining a lot of competition in China... seems like it may permeate to geographies like US and then India within the next 4 years too.

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A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.
Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of '17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years.