Core Viewpoint - Chayan Yuesheng has officially entered the North American market by launching its snack products online rather than opening physical stores [1][2]. Group 1: Market Entry Strategy - Chayan Yuesheng's entry into North America involves selling over 40 snack and cultural products through platforms like Shopify, Amazon, TikTok, Walmart, Weee, and Yami [2][3]. - The company has experienced varied success on different platforms, with a wider range of products available on Asian-focused platforms like Weee and Yami, while general platforms like Walmart feature mostly cultural products and coffee-related items [3][5]. Group 2: Pricing and Sales Performance - The pricing of Chayan Yuesheng's products has significantly increased in the North American market, with some items priced over five times higher than in China [10]. - Popular products on Weee include snacks that have sales exceeding 50 units each within a week of launch, indicating strong demand [9]. Group 3: Business Logic and Growth Potential - The decision to focus on retail snacks rather than traditional tea shops is seen as a strategic move to expand market reach without the complexities of physical store operations [12]. - The revenue split between snacks and tea drinks is currently 3:7, with snacks emerging as a significant growth area for the company [12]. Group 4: Industry Context and Challenges - The North American snack market is projected to reach $133.4 billion in 2023, with a compound annual growth rate of 4.57% from 2023 to 2028, presenting a lucrative opportunity for Chayan Yuesheng [13]. - The company faces challenges such as counterfeit products and competition from established snack brands, which may impact its brand image and market penetration [13][15]. Group 5: Future Outlook - The trend of tea brands entering the retail space is becoming common, with companies like Nayuki and Heytea also expanding their product offerings beyond beverages [16]. - The integration of snack sales with tea products is expected to enhance customer experience and increase overall sales, as both categories can complement each other [16].

Core Insights - The article discusses the unique international expansion strategy of the Chinese tea brand, Chayan Yuesheng, which has launched a range of snacks and tea-related products in North America without offering its signature tea drinks [1][2]. Group 1: Market Entry Strategy - Chayan Yuesheng has opted for a "reverse overseas expansion" model, focusing on e-commerce rather than physical stores, which contrasts with competitors like Mixue Ice City and Heytea that are opening numerous overseas locations [1][2]. - The brand acknowledges the challenges of standardizing service and product quality in international markets, leading to its decision to avoid opening physical stores for now [1][2]. Group 2: Supply Chain Considerations - Significant differences in tea inspection systems between China and the U.S. pose challenges for Chayan Yuesheng, as some of its tea suppliers are not yet prepared for overseas operations [2]. - The brand's pragmatic approach helps it avoid the high costs associated with fresh tea drinks, which can be seven times higher in the U.S. compared to domestic prices [2]. Group 3: Product Pricing and Consumer Demand - Chayan Yuesheng's products, such as "Mochi Crispy Strips" and "Crystal Fragrance," are priced at a premium, with some items seeing price increases of up to 300% compared to domestic prices, yet they still attract significant consumer interest [3]. - The cultural value of these products, representing "Chinese flavors," contributes to their appeal among overseas consumers [3]. Group 4: Multi-Platform Strategy - The brand has launched its products across multiple platforms, including Shopify, Amazon, and TikTok Shop, to diversify its sales channels and reduce reliance on any single platform [4]. - This strategy allows for rapid validation of product-market fit through sales data [4]. Group 5: Asset-Light Model - Chayan Yuesheng's approach of prioritizing e-commerce over physical stores represents a new, asset-light model for international expansion in the beverage industry [5]. - This model allows the brand to minimize costs associated with logistics and local operations while still reaching international consumers [5]. Group 6: Data Utilization and Market Insights - The brand leverages consumer feedback and sales data from e-commerce platforms to gain insights into North American market preferences, which is more effective than traditional market research methods [6]. - The establishment of a self-owned R&D production base is set to enhance the standardization of its products, facilitating future overseas expansion [6]. Group 7: Cultural Integration - The brand's strategy includes fostering cultural recognition among North American consumers by integrating Chinese lifestyle elements into their product offerings [6]. - This approach aligns with successful global strategies seen in brands like Muji and K-beauty, focusing on selling cultural identity rather than just products [6].

Group 1 - The rise of snack stores is a significant consumer trend in China, comparable to the popularity of milk tea shops [1][2] - Snack stores primarily cater to consumers outside of first-tier cities, tapping into a vast market [2][3] - The appeal of snack stores lies in their variety and affordability, allowing consumers to purchase multiple flavors at a low cost [3][5] Group 2 - Snack stores fulfill two consumer desires: the craving for variety and the need for affordable indulgence [5][6] - The low investment and operational requirements make snack stores attractive for franchisees, contributing to their rapid expansion [10][11] - The uniform demand for snacks across different regions facilitates quicker establishment of snack stores compared to restaurants [12][13] Group 3 - Despite their growth, snack stores face challenges, particularly low profit margins, with "Mingming Hen Mang" reporting a gross margin of 7.5% and a net profit margin of 2% [14][15] - The average gross margin for franchisees in the snack industry is around 20%, while the parent company retains a lower margin [16] Group 4 - The entry of new players, such as "Chayan Yuesheng," a well-known milk tea brand, into the snack market indicates the sector's attractiveness [21][22] - Chayan Yuesheng's strategy involves developing its own snack products, differentiating itself from typical snack stores that rely on existing brands [24][26] - The brand's expertise in flavor development from its milk tea business enhances its ability to create appealing snack products [27][28] Group 5 - Chayan Yuesheng's expansion into snacks is a response to local market saturation and aims to attract repeat customers [30][31] - The integration of snack offerings at milk tea locations allows for cross-selling opportunities, enhancing customer experience [34][36] - The ability to sell self-branded snacks through e-commerce platforms broadens market reach beyond local areas [37][38] Group 6 - Chayan Yuesheng's approach of combining high-margin milk tea with low-margin snacks can improve overall profitability [41]