When the solid poplar nectar exploded, Chamomochi also followed up urgently. However, Chamomochi’s new product continues to overturn. Some stores on the takeout platform have set it to "no delivery to single orders" and have been questioned for bundled sales. Currently, many Chabaido stores show that the product has been sold out. In addition, Chabaido has also quietly increased the price of this product.
Chabaidao customer service responded that the relevant service rules should be based on the store's specific page display; if it shows sold out, it means there is insufficient material and has not been put on the shelves; the price increase is due to the rapid increase in market prices of core raw materials.
Behind a series of outrageous operations, Chabaidao is eager to improve its performance. In the first half of last year, it handed over a report card with both revenue and net profit falling. In the first half of this year, it ushered in a recovery with cost reduction and efficiency improvement. However, it has reduced its research and development expenses, the number of employees has also declined, and the expansion of domestic stores has slowed down significantly, with more than 100 stores closing in first- and second-tier cities.
If you order without delivery, the price cannot cover the cost?
Recently, the "solid poplar nectar" in the dessert industry has become popular, sparking heated discussions on major social platforms. The new tea brand Chabaido has also quickly put the new product on the shelves, claiming that the total national sales on the first day of its launch were close to 250,000 cups.
However, netizens discovered that Chabaido’s solid poplar nectar was suspected of bundled sales and hunger marketing.
The first is bundling. On some takeout platforms, this product is set to "a la carte without delivery", as are some dessert bowl products. Below Chabaido's official social account, it becomes a large-scale complaint site. Many netizens complained that drinking milk tea requires rationing of food, which is too ugly to eat. Some netizens think this rule is a bundled consumption, "In order to try this, I bought another cup of milk tea." Some stores even show that the single cup is sold out, while the two-cup set will have it in stock.
Second is hunger marketing. The "BUG" column saw that many Chamoido stores currently show that the solid poplar nectar has been sold out. Some netizens said that the mall only opened at 9:30, and the store showed that it was sold out at 9:30. "It's better to take it off the shelves. If you can't afford it, don't play it."
Chabaidao officials have not yet responded to questions about bundled sales. Cha Baidao customer service told the "BUG" column that the relevant service rules should be shown on the specific store page. As for the question of hunger marketing, Chabaidao customer service said that because of the best tasting period of the raw materials of this drink and the timeliness of logistics and distribution, this drink is currently not available in some areas. If it says sold out, it means there is insufficient material and it is not on the shelves.
It is worth noting that Chamomochi also quietly increased the price of this product. In the official Chabaidao mini program, the price of solid poplar nectar is 22 yuan, an increase of 3 yuan compared to the previous price of 19 yuan. Orders placed in the mini program can be discounted by 1 yuan, and the actual selling price is 21 yuan. The official customer service of Cha Baidao explained that due to the recent rapid increase in market prices of core raw materials such as Ketmang, the price of drinks has increased slightly.
In addition, some tea shop owners said that "solid poplar nectar" has been at the top of the list in recent sales, and the core raw material Katemango is frequently out of stock. "Now it is basically sold out as soon as it is replenished. I heard that the company's purchasing department is 'running' for mangoes." "Mangoes are so expensive now, and with a large number of other ingredients, the price cannot cover the cost." The shop owner said.
Mr. Gao, a fruit merchant who has been in the fruit wholesale business for more than ten years, said that due to seasonal and weather factors, and now that it is the end of the season for mainstream mango varieties such as Kate Mango, the supply has declined. He estimated that this round of rising trends may not slow down until the demand side cools down.
Expansion slowed down and hundreds of employees were reduced
Behind the bundled sales and product price increases, Chabaidao is still facing performance pressure.
In the first half of 2024, Chabaidao handed over a financial report with a decrease in revenue and net profit. Revenue decreased by 10.0% year-on-year, and net profit decreased by 59.7% year-on-year. In the first half of this year, Chabaidao's performance finally recovered, with total revenue of 2.5 billion yuan, a year-on-year increase of 4%; profit during the period increased to 333 million yuan, a year-on-year increase of 40%.
Behind the profit growth, Chabaidao has taken a series of measures to reduce costs and increase efficiency. For example, in the first half of this year, Chabaida's R&D expenses were 14.1 million yuan, a decrease of 2.8% from 14.5 million yuan in the first half of last year; in addition, Chabaida's number of employees is also declining. Its 2024 financial report disclosed that Chabaida had 2,319 employees at the end of that year. In the first half of this year, its number of employees was 2,133, a decrease of 186 employees in half a year.
Chamomodo has also controlled the speed of store expansion. In the first half of this year, the number of Chabaido stores in China increased from 8,385 in the first half of 2024 to 8,444, with only 59 new stores added, a year-on-year increase of 0.7%; this expansion rate was significantly slower than the same period last year. Data shows that the number of Chabaido stores in China increased from 6,954 in the first half of 2023 to 8,385 in the first half of 2023, a year-on-year increase of 20.6%.
The reason given by Chabaidao is to continue to optimize the quality of store terminal operations. According to the financial report, data show that in the first half of this year, the number of Chabaidao stores in first-tier, new first-tier and second-tier cities has declined. Among them, the number of stores in first-tier cities has decreased by 68, in new first-tier cities has decreased by 45, and in second-tier cities has decreased by 22; while in third-tier cities and fourth-tier and below cities, the number of stores has expanded.
At present, Chabaido's stores are mainly franchise stores, and there are only 14 directly operated stores. Judging from the changes in franchisees and franchised stores, in the first half of this year, Chabaidao franchisees added 596 new franchisees and terminated 505; franchised stores added 466 new franchisees and terminated 418.
In addition to reducing stores in first- and second-tier cities and expanding into lower-tier markets, Chabaidao also focuses on overseas business. According to the financial report, in the first half of this year, Chabaido has opened 21 overseas stores, including 11, 4, 1, 2, 1, 1 and 1 stores in South Korea, Malaysia, Thailand, Australia, Hong Kong, China, Macau, China, and Spain respectively.
At present, overseas stores account for a small proportion of Chamomodo stores, and the revenue they contribute is probably extremely limited.