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

By orchioo Apr3,2023

According to Yingshang. com, China Resources Group will join forces with the first leading enterprise of China’s milk tea, Honey Snow Ice City, to build a global headquarters base of Honey Snow Ice City in Zhengzhou, located in the east square of Zhengzhou East Railway Station.
As early as 2021, the construction of the Asia headquarters project of the Honey Snow Ice City will begin in Qingbaijiang, Chengdu, and is expected to be completed and put into operation in 2023. The project plans to invest 5 billion yuan, covering an area of 131.6 mu, to build an Asian headquarters integrating 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 expansion, 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.https://store.stoneitech.com/
In addition to the factory, Mixue Ice City has also built a general warehouse in Wenxian County centered in Henan Province, and set 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 not much information about the establishment of global headquarters base by Snow City and China Resources, or China Resources is further strengthening its business and cooperation with Zhengzhou.
1、 Mixue sits in the Central Plains and distributes the global market
In 2022, after the Chinese epidemic was unsealed, Thailand opened the entry of Chinese tourists. A large number of Chinese tourists went to Thailand for tourism, and the Deputy Prime Minister of Thailand, Director of Tourism and other senior officials personally welcomed them.
The banner at the airport also reads “Forever welcome to Chinese families” in Chinese. But at that time, the attention of the media and tourists were 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 nearby was crowded out. Not long ago, the store opened in Sydney in the ice city of Honey Snow was once a shock to the local TV station.
Mixue intends to build a headquarters base or is related to its “going to sea” strategy. With the increasingly fierce competition for new tea drinks in the mainland, Mixue speeds up the pace of “going to sea” at parity and finds the optimal solution for its business increment.
“We hope that there will be better development space and more opportunities overseas.” According to the public information of the city, by 2022, there will be more than 1000 overseas stores in the city.
The export of Mixue is also affected by the domestic market. According to the data of the 2021 New Tea Research Report, the growth rate of domestic new tea in 2020 will be 26%, and the growth rate will drop to about 19% in 2021-2022. It is predicted that the growth rate will drop to 10-15% in the next 2-3 years.
At the same time, peers did not slow down the pace of expansion. Guming plans to add more than 3000 stores this year, and the total number of stores will exceed 10000. The number of Shuyi, Chabaidao, and Shanghai-based aunt stores are all on the way to 6000.
The inside-out of the industry has led some regional brands to resist the entry of foreign brands by opening dense stores in the local area. It is the situation that the head brands go to sea.
2、 Build the headquarters economy plus supply chain
According to its prospectus, more than 95% of its revenue comes from franchisees. In 2021, the income of 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 the ice city is only 3%, far below the national average of 20%. Thanks to its strong chain management ability, such as more than 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 cost of the company and the stronger the profitability. In terms of data, in 2021, the rate of sales expenses mainly composed of warehouse leasing, transportation and travel, and market promotion decreased by 3.5% compared with 2019.
Although the city attaches importance to marketing, it also attaches importance to the construction of the supply chain. It is one of the few enterprises in the industry that can achieve the ability to produce all the core materials by building its own production base and building factories in the raw material production areas.

By orchioo

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