Core Viewpoint - The article discusses the challenges faced by Baima Tea Industry in its long journey towards IPO, highlighting its struggles in the traditional tea market and the impact of changing consumer preferences on its business model [5][6][9]. Group 1: IPO Journey - Baima Tea has been attempting to go public for 12 years, with multiple failed attempts across different stock exchanges, including Shenzhen and Hong Kong [6][8]. - The company has submitted its IPO application to the Hong Kong Stock Exchange for the fourth time since 2019, indicating a persistent but challenging journey [7][8]. - The cold reception from capital markets towards traditional tea companies is a significant factor in Baima's struggles, as evidenced by the experiences of other companies like China Tea and Tianfu Mingcha [11][12]. Group 2: Company Challenges - Baima Tea faces four major pain points: reliance on OEM production for over 50% of its products, a high percentage of franchise stores (93%), a misalignment with the current consumer trend of downgrading, and a lack of appeal to younger consumers [13][14][15]. - The company's revenue has declined by 4.2% year-on-year, and net profit has dropped significantly by 17.8% as of mid-2025 [13]. - The reliance on franchise stores has led to quality control issues, with complaints about product quality and false advertising [23][32]. Group 3: Market Positioning - Baima Tea's positioning as a high-end brand is increasingly problematic in a market where consumer spending is tightening, particularly among middle-class consumers [37][42]. - The average annual purchase amount of Baima's members has decreased from 2860.4 yuan in 2022 to 2469.6 yuan in 2024, indicating a decline in purchasing power [43]. - The company has attempted to introduce more affordable products but faces stiff competition from brands that better understand consumer preferences [47]. Group 4: Youth Market Engagement - Baima Tea has struggled to connect with younger consumers, who prioritize efficiency, transparency, and experiential consumption [50]. - The company's attempts to innovate and attract younger demographics, such as launching sub-brands and new product lines, have not yielded significant results [51][53]. - To effectively engage with younger consumers, Baima may need to shift from a passive to an active approach in its marketing and product development strategies [55].