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Pandemic speeds up reshuffling of tea drinks industry
By:Zheng Qian  |  From:english.eastday.com  |  2020-12-01 09:41

After being hit hard by the novel coronavirus pandemic, the tea drink industry has upgraded and reshuffled, with leading enterprises embracing a new round of expansion.

New tea drinks, upgraded versions of traditional tea, have seen increasing popularity in recent years among the young, especially females, due to creative products like milk foam tea and fruit tea. Since 2015, the number of related companies has been expanding and in 2019, the number of such stores was near 60,000.

The pandemic outbreak in the first half of this year stalled this strong growth momentum, and many stores had to shut down. Amid the changing environment, many others have adjusted their strategies to make up for physical stores’ loss of footfall by increasing their take away channel.

Jidong Grass Jellyis one of the milk tea brands that have enjoyed an expanded take-out business in the midst of anti-pandemic measures.“The pandemic has indeed affected the eat-in mode, but take away mode has instead inspired the rapid recovery of the whole industry,” said Wu Jian, founder of Jidong company.

In Wu’s opinion, the pandemic has brought two extremes. One is that some leading brands that perform well in operations and supply chain management have not only survived but also performed better than at the same time in previous years. And the other is that those mismanaged companies went bankrupt.

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