Honey Snow Ice City has made another big move to join hands with China Resources to build a global headquarters

According to Yingshang. com, recently, China Resources Group will collaborate with China’s leading milk tea enterprise, Honey Snow Ice City, to build a global headquarters base for Honey Snow Ice City in Zhengzhou, located at the East Square of Zhengzhou East Railway Station.
In 2021, the construction of the Asia headquarters project of Honey Snow Ice City began in Qingbaijiang, Chengdu, and is expected to be completed and put into operation in 2023. The project plans to invest 5 billion yuan and cover an area of 131.6 acres to build an Asian headquarters that integrates intelligent manufacturing, deep processing of green products, import and export trade and settlement, as well as distribution, research and development, management, and settlement centers.
According to media reports, this Asian headquarters is responsible for market development, operation management, raw material supply, sales settlement, etc. in Sichuan, Chongqing, Yunnan, Guizhou, Southeast Asia, and South Asia. The fixed assets investment is about 1 billion yuan, and the R&D center building, training building, automated production workshop, automated warehouse, etc. are planned to be built.
In addition to the factory, Mixue Ice City also builds a general warehouse in Wenxian County centered in Henan Province, and sets up sub warehouses in four directions, namely, Changsha warehouse in Hunan Province, Foshan warehouse in Guangdong Province, Chengdu warehouse in Sichuan Province, and Xi’an warehouse in Shaanxi Province. The raw material distribution radiates across the country.
At present, there is little information disclosed about the establishment of a global headquarters base by Honey Snow Ice City and China Resources, or it may be that China Resources is further strengthening its deep commercial cultivation and cooperation with Zhengzhou.
1、 Mi Xue Sits in the Central Plains and Arranges Global Markets
In 2022, after the release of the Chinese epidemic, Thailand opened the entry of Chinese tourists. A large number of Chinese tourists went to Thailand for tourism, and senior officials such as the Deputy Prime Minister and Tourism Director of Thailand personally welcomed them.
The banner at the airport also reads “Forever welcome to Chinese families” in Chinese. It was only at that time that the attention of the media and tourists was attracted by the Deputy Prime Minister of Thailand, ignoring another Chinese online celebrity who welcomed tourists at the airport. A group of employees wearing “struggling youth” T-shirts warmly welcomed their families in the name of Snow King. In fact, visitors to Indonesia can also see the branches of Snow King.
In the first store in South Korea, there were so many people queuing up that the other milk tea shop next to them was completely crowded out. Not long ago, the store of Honey Snow Ice City opened in Sydney, and a long snake formation was pulled up, which once shocked local TV stations.
Mixue intends to build a headquarters base or is related to its “going to sea” strategy. As the competition for new tea drinks in the mainland becomes increasingly fierce, Mixue accelerates the pace of “going to sea” at affordable prices to find the optimal solution for its business growth.
“We hope to have better development space and more opportunities overseas.” According to the public information of Miyue Ice City, by 2022, there have been more than 1000 overseas stores of Miyue.
The export of Mixue is also influenced by the domestic market. According to the data from the 2021 New Tea Research Report, the growth rate of domestic new tea drinks in 2020 was 26%, and the growth rate from 2021 to 2022 decreased to about 19%. It is predicted that the growth rate will decrease to 10-15% in the next 2-3 years.
Meanwhile, peers have not slowed down the pace of expansion. Guming plans to add more than 3000 stores this year, with a total number of stores exceeding 10000. Shuyi, Chabaidao, and the number of Aunt Shops in Shanghai are all on the road below 6000.
The internal influence of the industry has led some regional brands to resist the entry of foreign brands by opening dense stores in local areas, and it has become a trend for leading brands to go overseas.
2、 Creating a Headquarters Economy Plus Supply Chain
According to Mixue’s prospectus, over 95% of Mixue’s revenue comes from franchisees. In 2021, the revenue from food materials will account for about 70%; Packaging materials accounted for 17.19%; Equipment accounted for 6.72%.
On the other hand, the store closure rate of Honey Snow Ice City is only 3%, far below the national average of 20%. Thanks to its strong chain management capabilities, such as over 900 market supervisors who account for 23% of the total number of employees.
As a supplier, Mixue Ice City must strengthen its scale effect. The more franchisees, the lower the company’s costs, and the stronger its profitability. In terms of data, in 2021, the sales expense rate mainly composed of warehouse leasing, transportation and travel, and marketing decreased by 3.5% compared to 2019.
Although focusing on marketing, Miyue Ice City also attaches importance to supply chain construction. By building production bases and factories in raw material production areas, Miyue Ice City is one of the few enterprises in the industry that can achieve full self-production capabilities for core materials.