Research on the Business Model of the Chinese Tea Beverage Industry by the SWOT: Take CHAGEE and Luckin Coffee as Example

International Business School, Xi ‘an Jiaotong-Liverpool University, 215000, Suzhou, China

^* Corresponding author: Puying.Yu23@student.xjtlu.edu.cn

Abstract

People’s enthusiasm for consuming has increased and social consumption has been upgraded as a result of the consistent economic growth. With the high popularity of freshly made tea beverages, many new tea beverage brands have appeared one after another, and they have been loved by contemporary young groups and have attracted wide attention from society. This has also led to ongoing discussions within the community over the new business model for the tea beverage industry. Through SWOT analysis, this study studied the reasons and business models behind the new tea beverage brands represented by CHAGEE and Luckin Coffee. The research examines the similarities between CHAGEE and Luckin Coffee’s market sizes, marketing strategy, and development paths in order to determine the necessary circumstances for creating new tea beverages. The development potential and drawbacks of CHAGEE and Luckin Coffee in the tea beverage business are then analyzed in this study. These findings are combined with the real state of the Chinese tea beverage industry to inspire the growth of CHAGEE and Luckin Coffee. Next, recommendations for creating cultural intellectual property rights that adhere to brand attributes, raise service standards and broaden service offerings, and improve product user experience are made.