HeyTea, a beverage brand in China, announced on Thursday that it has completed product price adjustments started in January of this year. The company said it would not launch new drinks priced above 29 yuan ($4.6) this year, and promised that existing products will not increase in price this year.
As for the reasons for the adjustment, HeyTea said that the price reduction benefited from its brand potential, increased scale and the overall supply chain. At present, it has nearly 900 stores in about 70 cities at home and abroad.
In addition, HeyTea spokesperson responded to local media outlet TMTPOST: “In order to share our high-quality products with more people, we have lowered the price by 1 to 10 yuan and set a price limit of 29 yuan. After the price adjustment, drinks with prices between 15-25 yuan have accounted for more than 60% of all products on sale.”
According to data released by Frost & Sullivan, in 2020, in the new-style beverage industry, the national popularity of HeyTea ranked first, and its brand awareness accounted for more than 41.5% of the national market.
In recent years, the new-style beverage industry has attracted quite a bit of attention and investment. Nayuki was the first such company to be listed. Under this background, HeyTea has gone in the opposite direction and lowered the prices of many of its products.
Not long ago, Modern China Tea Shop or Chayanyuese in Chinese, raised the prices of most of its products by 1 yuan as of January 7th. On February 16th, the prices of many products in Starbucks’ official app, including the Cafe Americano and latte, were raised by 1-2 yuan.