Core Viewpoint - The recent launch of the low-priced "High Aroma Sugar-Free Tea" by Xiaoguan Tea, priced at 5 yuan per bottle, indicates a strategic shift in response to declining sales of high-end products and a store closure crisis [2][15]. Group 1: Product Strategy - Xiaoguan Tea has introduced a new product line, including three bottled tea variants, with plans for more, aiming to capture a broader market segment [5]. - The founder, Du Guoying, initially considered a retail price of 15 yuan per bottle but ultimately set it at 5 yuan due to various factors [5]. - Historical sales data shows that high-end products priced over 1,000 yuan have seen very low sales, with some items selling less than 30 units [2][7]. Group 2: Market Performance - Xiaoguan Tea's sales peaked at 1.1 billion yuan in 2017 but have since declined, with 2021 revenues dropping to 1 billion yuan [15]. - The brand is facing a "store closure crisis," with 58 new stores opened and 58 closed in the last 90 days, and 48% of stores not operating for over 30 days [15][16]. - The brand's high-end positioning is being questioned as sales of premium products have not met expectations, leading to a reassessment of its market strategy [9][15]. Group 3: Brand Perception and Challenges - The brand's image as a high-end tea producer has been challenged by consumer perceptions and controversies regarding the authenticity of its "master-crafted" products [9][12]. - Du Guoying has publicly apologized for past miscommunications regarding the brand's product quality, indicating a need for transparency [12][13]. - Despite the challenges, Xiaoguan Tea is attempting to diversify its product offerings and has registered trademarks for various new product lines, including affordable options [16].