Like other catering industries, the main problems existing in the current new tea beverage industry include

1. Franchise chaos and brand copycat issues

Some new startups Franchise fees for tea brands such as Mixue Bingcheng are relatively low. Low franchise fees lead to franchise chaos in the market.

Some agency companies use store franchises as a guide to launch fake brand franchise websites in an attempt to fake the real ones. In addition, many popular new tea brands frequently encounter trademark plagiarism issues. For example, in 2019, "Cha Yan Guan Se", which is similar to "Cha Yan Yuese", was established, and even reversely sued "Cha Yan Yuese" for trademark infringement.

2. Product homogeneity

Due to the low entry threshold of the new tea beverage industry, the required production technology content is low, product formulas are easy to imitate, and new tea beverages are produced by different brands. The production process is roughly the same. At present, the degree of product homogeneity in the industry is relatively high. Moreover, since there is no unified production standard in the tea industry, product quality varies, which affects fair competition among enterprises. Industry production standards need to be standardized urgently.

3. Frequent food safety issues

Imperfect industry standards and low entry barriers make the production processes of various brands inconsistent, production standards uneven, and food safety issues , production and hygiene problems frequently arise, and some new tea drink stores even use expired raw materials. Some leading brands such as Heytea have also been repeatedly exposed by the media as having hygiene problems in their stores.

"iiMedia Report | Survey and Analysis Report on Development Status and Consumption Trends of China's New Tea Drink Industry in H1 2020"