Core Insights - The rise of snack sales in tea shops, exemplified by a bread crumb product priced at 2.5 yuan that achieved over 100 million yuan in sales within a year, highlights a significant trend in the tea beverage industry [1] Group 1: Market Dynamics - The overlap in consumer demographics, particularly among the 18 to 35 age group, drives the integration of snacks into tea shop offerings, as these consumers view tea as a premium treat and are willing to spend on snacks [2] - The trend of tea shops diversifying into snacks is a strategic move to boost sales and market share, with brands like Heytea and Mixue Ice City entering the "tea+" segment [1][2] Group 2: Brand and Consumer Engagement - The brand effect creates a sense of identity and loyalty among consumers, with local tea brands attracting dedicated followings and turning snacks into trendy items for social sharing [3] - Unique packaging, affordable pricing, and diverse options make snacks from tea brands appealing, transforming them into popular gifts among young consumers [3] Group 3: Regional Influence - Many tea brands incorporate local flavors and ingredients into their products, enhancing cultural representation and market appeal, as seen with regional specialties like sweet fermented milk in Gansu and barley egg crisp in Tibet [4] - The challenge for tea brands lies in effectively leveraging brand recognition and regional flavors to create memorable taste experiences that encourage repeat purchases in the "tea+" market [4]

Group 1: Core Business Strategy - Cha Yan Yue Se adopts a "0-store + pure e-commerce" model for its overseas expansion, differentiating itself from competitors like Heytea and Mixue Ice City, which are opening physical stores abroad [1] - The brand has launched over 150 products on platforms like Amazon and Yami, including canned tea, tea bags, and various snacks, focusing on a "snack + culture" theme [4][7] - The company has not yet sold its main product, freshly made tea drinks, overseas due to compliance and supply chain challenges [8][11] Group 2: Market Challenges and Opportunities - The North American snack food market reached $133.4 billion in 2023, with a projected compound annual growth rate of 4.57% over the next five years, indicating a growing opportunity for Chinese food brands [21] - Despite the potential, Chinese food exports face significant barriers, with only 3% penetration in mainstream Western supermarkets and over 90% of brands limited to Chinese grocery stores [24] - Cultural and taste differences pose challenges, as many foreign consumers have misconceptions about Chinese food, necessitating a long-term effort to build brand recognition and acceptance [24][25] Group 3: Compliance and Localization - Compliance with food safety standards is a major hurdle for Chinese brands entering the U.S. market, with varying regulations across states and platforms [25] - The company is initially focusing on standard products to gain experience before transitioning to localized offerings [8][11] - Successful entry into mainstream markets requires not only compliance but also effective localization strategies to cater to diverse consumer preferences [26]

Core Viewpoint - Chayan Yuese, a popular tea brand, is expanding internationally by adopting an online-only model, focusing on the North American market rather than traditional physical store openings [5][6][28]. Group 1: Company Strategy - Chayan Yuese has chosen to enter the North American market without physical stores, utilizing e-commerce platforms such as Shopify, Amazon, TikTok Shop, Walmart, Weee, and Yami [6][18]. - The brand is launching over 40 products, primarily snacks and cultural items, rather than its signature milk tea, which reflects a strategic shift to cater to the online market [3][7][28]. - The company has been cautious in its expansion, previously focusing on regional growth in China before venturing abroad [13][17]. Group 2: Market Positioning - Chayan Yuese's decision to sell snacks instead of tea is influenced by the complexities of exporting tea products to the U.S., including regulatory challenges and the need for FDA certification [12][28]. - The brand has established a certain level of brand recognition among the Chinese community in North America, which may facilitate its entry into the market [22][28]. - The competitive landscape for Asian snacks in North America is intense, with many established brands, which may challenge Chayan Yuese's market position [28]. Group 3: Financial Performance - The company's online sales exceeded 100 million yuan in 2024, indicating a successful transition to e-commerce and retail products [18]. - Popular items like the "bread cubes" have shown strong sales, with some products selling out quickly on their Shopify store [9][18]. Group 4: Future Considerations - The absence of tea products in the initial launch may hinder Chayan Yuese's ability to establish itself as a "new tea drink" brand in the North American market [31]. - The brand's approach may signify a shift in the new tea drink sector towards more refined operations, as companies seek unique paths for international expansion [28].