Singaporeans love their bubble and milk teas, however solely a handful of manufacturers gained a cult following.
Together with giants like KOI, Gong Cha, CHICHA San Chen, and native mainstays reminiscent of Every A Cup and LiHo, one model stands out: CHAGEE.
Beforehand often known as Ba Wang Cha Ji (霸王茶姬), the model has gained recognition for its drinks and even went viral for its “tear and win” fortunate draw occasion that occurred on the tenth of each month. This occasion gave prospects an opportunity to win merchandise from big-name manufacturers reminiscent of YSL and Dior cosmetics.
Regardless of the reward from Singaporeans, many followers had been shocked when the model made a quiet and sudden exit at the starting of 2024. Nevertheless, they didn’t have to wait lengthy for the model’s return, as CHAGEE opened their new outlet at the coronary heart of Singapore at Orchardgateway on August 9, simply in time for the nation’s annual Nationwide Day.
However one query stays: why did they depart in the first place? Vulcan Put up spoke to CHAGEE’s execs to spill the tea.
Why did they depart in the first place?
In accordance to Lawrence Wong, CEO of CHAGEE Singapore, the firm noticed “great support” from the native market when it first opened in 2019, and at one level, it had opened 12 shops islandwide.
They managed to acquire a loyal fanbase in the crowded F&B market—with some even travelling throughout the Singapore-Malaysia causeway to fulfill their cravings—when the model seemingly “disappeared.”
As for the motive for his or her abrupt exit, Lawrence acknowledged that it was a “strategic decision.”
He first defined that CHAGEE Singapore beforehand operated through a franchise partnership mannequin. Nevertheless, he declined to remark additional when requested if he might elaborate on why it didn’t work out.
At the moment, the Singapore shops are working beneath the direct possession of the predominant firm based mostly in China—merely put, there aren’t any extra franchises for the model.
“[This is] to ensure that our teas remain attractive and accessible for tea lovers from all walks of life, without compromising taste and quality,” mentioned Lawrence.
He added that CHAGEE additionally recognises Singapore’s place as a multicultural nation and a strategic location as a worldwide enterprise hub. It has since arrange its SEA headquarters in the city-state—making it a really perfect launchpad and door for a lot of worldwide manufacturers to enter the SEA market.
As well as, Lawrence acknowledged that Singapore has an “affluent consumer base coupled with a growing appreciation for premium tea products” which will increase the model’s development potential in the nation.
Reworking the enterprise
CHAGEE has opened three new “tea bars” in Central Singapore, all inside the identical month: Orchardgateway, Plaza Singapura, and Raffles Place.
The model’s return to the city-state was extremely anticipated by followers, with crowds forming lengthy, snaking queues and a few ready for so long as an hour to obtain their orders.
To maintain up with the inflow of shoppers and guarantee smoother buyer experiences, the model rolled out in-app ordering and supply and always upgraded the ordering course of.
Jane Solar, CHAGEE’s APAC R&D Director, additionally shared that the model has a singular alternate coverage: They are going to remake your drink if you’re not glad with it, which turned out not to be the model’s solely edge.
For starters, CHAGEE will not be a bubble tea model as they don’t provide pearls or toppings to encourage prospects to expertise the “original tea taste.”
Nevertheless, on condition that Chinese language tea making has had a wealthy historical past for hundreds of years, it appeared unrealistic for the youthful demographic to recognize the artwork, as they usually prioritise velocity and comfort.
“We hope to connect people and cultures through a great cup of tea, but also understand that traditional tea culture has quite a high entry barrier,” Lawrence emphasised.
Therefore, the firm embarked on a mission to modernise the tea-drinking expertise and relooked at their retailer ideas and total strategy—in the end pivoting from their takeaway kiosks for snug dine-in, sit-down tea bars.
Apart from providing a brand new menu, the firm has additionally leveraged know-how with their semi-automated tea-making tools to improve their shops’ total effectivity, in addition to a Product ID Card and a Well being Calculator on the CHAGEE app.
In accordance to Gao Hongbo, CHAGEE’s Director of Singapore Consumer Operations, these options are “a first” to be provided in the ready-to-drink trade.
“Technology and innovation play a crucial role in the growth and evolution of the CHAGEE brand and business in establishing itself as an international modern oriental tea brand,” mentioned Hongbo.
Extra plans brewing forward
CHAGEE is ready to proceed rising its international presence, having expanded from greater than 4,000 shops to over 5,000 shops in the final couple of years.
The model is planning to open extra shops in Singapore, with Vivo Metropolis and One Raffles Place being their subsequent two stops and extra to come past the central area by the finish of 2024.
Lawrence, who beforehand labored at foodpanda Singapore as a CEO, expressed his ambition to remodel the model to develop into the “foremost brand in the beverage industry”, and that comes from harbouring an unwavering dedication to delivering distinctive buyer experiences.
Our mission is to craft a seamless, end-to-end journey that not solely delights but in addition evokes prospects to return to our shops repeatedly. A key side of this focus is enhancing the digital expertise, making certain that each interplay from ordering and ready for supply is clean and fulfilling for our prospects.
Lawrence Wong, CEO of CHAGEE Singapore
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Featured Picture Credit score: CHAGEE Singapore
