Core Viewpoint - The new Chinese-style dessert market is experiencing rapid expansion, particularly in the East China region, with many brands opening hundreds of stores within a year, indicating a significant growth trend in this sector [4][5][6]. Expansion of New Chinese-style Dessert Brands - Several new Chinese-style dessert brands have opened over 300 stores in the past year, with a notable concentration in East China. For instance, 麦记牛奶公司 has over 400 stores, with nearly 350 opened in the last year, marking a growth rate exceeding 700% [5]. - 糖叙手作糖水铺 has also expanded rapidly, surpassing 100 stores, with nearly 70% opened this year. Brands from Guangdong are increasingly targeting the Jiangsu-Zhejiang-Shanghai market [5][6]. - Established brands like 赵记传承 are accelerating their expansion in East China, adding nearly 100 new stores in the past year [6]. Market Trends and Consumer Behavior - The popularity of dessert shops is rising, with significant engagement on social media platforms regarding "dessert training" and "dessert franchising," indicating a growing interest in this business model [7]. - The average price of desserts has increased to around 20 yuan, with many brands focusing on enhancing product presentation and visual appeal to attract consumers [8][16]. Changes in Store Strategy and Product Offering - New dessert brands are shifting from street-side locations to shopping centers, which offer higher foot traffic and visibility. This strategic change is evident in the locations of new stores for brands like 麦记牛奶公司 and 赵记传承 [8][10][11]. - The store designs emphasize a modern aesthetic, incorporating elements that enhance the dining experience, such as greenery and warm lighting, while also focusing on the quality of ingredients used [12][15]. - The product offerings have diversified, with many brands introducing fusion items alongside traditional desserts, catering to evolving consumer preferences [16][18]. Economic Viability and Investment Potential - The dessert category shows strong profitability potential, with gross margins typically exceeding 65%. Some stores report monthly revenues of up to 160,000 yuan, with net profits exceeding 50,000 yuan [22]. - The investment required for opening a dessert shop is significant, often exceeding 500,000 yuan, but the low technical barriers make the market attractive for new entrants [25]. Regional Market Dynamics - East China is seen as a critical market for dessert brands due to its strong consumer spending power, with per capita disposable incomes in Shanghai, Zhejiang, and Jiangsu exceeding 50,000 yuan [21]. - The local preference for sweet flavors provides a favorable environment for dessert brands, contrasting with the competitive landscape in Guangdong, where established brands dominate [21]. Challenges in Expansion - Despite the growth potential, dessert brands face challenges in expanding beyond their initial regions, including high initial investment costs and seasonal demand fluctuations, particularly in winter [24][26].

Core Insights - The new-style sugar water brands are experiencing rapid expansion, particularly in the East China region, with some brands opening over a hundred stores within a year [1][3][19] - The average price of sugar water has increased to around 20 yuan per serving, with a diverse product structure that includes both traditional and innovative offerings [12][13][15] Expansion Trends - New sugar water brands are focusing on high-traffic locations such as shopping malls instead of traditional street-side shops, enhancing visibility and customer flow [5][7][8] - Brands like 麦记牛奶 and 赵记传承 have significantly increased their store counts in East China, with 麦记牛奶 opening nearly 350 new stores in the past year [1][19] Consumer Preferences - There is a noticeable shift in consumer preferences towards unique and visually appealing products, as younger consumers seek emotional value and experiential consumption [16][18] - The sugar water category aligns with the rising health trends among the younger generation, incorporating ingredients that are perceived as nutritious and beneficial [18] Market Dynamics - East China is seen as a fertile ground for brand growth due to its strong consumer spending power, with per capita disposable income in Shanghai, Zhejiang, and Jiangsu exceeding 50,000 yuan [19] - The sugar water segment is attracting many franchisees due to its high profit margins, with gross margins often exceeding 65% [19][21] Operational Challenges - Despite the high initial investment required for opening stores in prime locations, the low technical barriers in the sugar water category make it susceptible to competition [22] - Seasonal challenges, particularly in winter, pose a risk for sugar water brands in East China, as the colder climate affects the demand for cold dessert products [23]