Core Viewpoint - The marketing campaign "suspending the Earth" by Xiangpiaopiao highlights the company's ongoing struggles, with significant losses and declining sales in its core instant tea business, which has shrunk by 75% over four years [1][3][4]. Financial Performance - In the first half of 2025, Xiangpiaopiao reported revenue of 1.035 billion yuan, a year-on-year decrease of 12.21%, and a net loss of 97.39 million yuan, worsening from a loss of 29.5 million yuan in the same period last year [3][4]. - The instant tea business generated revenue of 423 million yuan, down 31.04% year-on-year, marking a significant decline compared to the previous peak [3][4]. - The company's losses in the first half of 2025 reached the highest level in three years, marking the sixth consecutive year of losses in the first half [3][4]. Market Dynamics - The instant tea market is facing intense competition from fresh tea drinks, which have rapidly gained popularity since 2012, leading to a shift in consumer preferences [4][6]. - The number of distributors for Xiangpiaopiao decreased by 92 in the first half of 2025, indicating a contraction in sales channels [5]. Marketing and Strategy - Xiangpiaopiao invested 331 million yuan in marketing in the first half of 2025, accounting for one-third of its revenue, but this strategy has not translated into sustainable growth [6][7]. - The company is exploring new growth avenues by developing functional products and new categories of instant products, while also pushing existing products towards healthier options [8][10]. Product Development - The ready-to-drink segment showed better performance, with revenue of 591 million yuan in the first half of 2025, a year-on-year increase of 8.03%, surpassing the instant tea business for the first time [8][10]. - New product launches include healthier options with no trans fats, no plant-based fats, and no artificial flavors, aiming to align with current consumer health trends [8].

Core Viewpoint - Xiangpiaopiao is actively seeking to regain its consumer base by exploring various channels, including snack stores, Sam's Club, and convenience stores, while also launching pop-up stores to engage with consumers directly [1][2][3]. Group 1: Market Challenges and Internal Changes - Xiangpiaopiao, founded in 2005, was once a market leader in cup-based instant milk tea but now faces challenges due to market fragmentation and evolving consumer demands [2][4]. - The company is undergoing a gradual internal transformation, integrating product development with channel management to streamline operations and enhance product launch speed [3][5]. - The chairman, Jiang Jianqi, aims to position Xiangpiaopiao as the "Zara of the milk tea industry," focusing on rapid product development and market responsiveness [3][6]. Group 2: Product Development and Market Strategy - Xiangpiaopiao is exploring new product lines, transitioning from instant to ready-to-drink options, and experimenting with various flavors and formats to meet diverse consumer preferences [6][8]. - The company has established two main product lines: instant and ready-to-drink, with a focus on creating a rich product matrix within these categories [6][7]. - The ready-to-drink segment, particularly the Meco brand, has shown significant growth, with sales increasing from over 300 million to nearly 1 billion in five years [9]. Group 3: Channel Expansion and Consumer Engagement - In 2024, Xiangpiaopiao plans to embrace the rapid expansion of snack stores, aiming to customize products for these new channels to differentiate from traditional offerings [25][26]. - The company is also testing new products through pop-up stores, which serve as a platform for consumer interaction and product validation [20][21]. - Xiangpiaopiao's strategy includes launching over 20 new SKUs targeted at different channels, reflecting a commitment to adapt to market changes and consumer segmentation [11][14]. Group 4: Operational Adjustments and Future Outlook - The company is working on enhancing production flexibility to meet the diverse and evolving demands of consumers, moving from large-scale production to smaller, customized batches [26][27]. - Jiang Jianqi emphasizes the importance of maintaining strong relationships with distributors while navigating the challenges posed by new market dynamics [33][34]. - The company aims to leverage its established brand recognition while innovating to stay competitive in a rapidly changing beverage market [30][34].