On May 21, the International Tea Day 2024 – Modern Oriental Tea Innovation Forum was held in Shanghai.
The 74th General Assembly of the United Nations (UN) declared May 21 as "International Tea Day". This marks the first successful establishment of an international agricultural festival promoted by tea-producing countries led by China. In 2021, the idea of a coordinated development model integrating tea culture, tea industry, and tea technology was proposed, providing direction for the development of the tea industry in the new era. Under the guidance of this coordinated development model, China's tea industry has also ushered in great development.
As an innovator of modern Oriental tea, Zhang Junjie, founder of CHAGEE, stated at the forum that the number of CHAGEE stores has surpassed 4,500 worldwide, with total registered members reaching 130 million. "In recent years, we have been exploring ways to restore tea-making techniques of 900 years ago using modern technology, thus allowing tea to return to its essence. On the one hand, we are promoting healthier products, and on the other hand, we aim to spread Chinese culture, striving to establish a world-class Oriental tea brand."
Former Vice Minister of Commerce Jiang Yaoping pointed out during the forum that in the face of fierce competition in the global market and diverse consumer demands, it is essential not only to continuously enhance the quality and innovation capabilities of Oriental tea but also to actively explore the connection points between tea culture and modern life. He emphasized the need to develop more tea drink products that meet the needs of modern people, enabling more individuals to experience the beauty and health benefits of tea.
The Future of Tea Lies in the Affection of Young Customers
Tea, which originated in China and has become popular worldwide, is not only one of the most interesting and widely practiced traditions for Chinese people but also a healthy lifestyle closely associated with culture, industry, and technology. With the changing tea-drinking habits of today's consumers, how the tea industry engages young people has become a new challenge of the era.
The core reason impacting the rejuvenation and popularization of Oriental tea is that traditional tea-drinking methods have a high threshold. One must understand tea and know how to select it, brew it, and appreciate it, all of which come with specific time and location requirements. This can make many young people feel troubled and burdened.
Coffee and tea are the two largest beverage categories in the world. Interestingly, coffee once encountered similar challenges as tea in achieving widespread appeal. Traditional coffee preparation can be even more complicated than tea, requiring grinding and boiling. However, after World War II and alongside the development of modern industry, pour-over coffee and extraction techniques became increasingly popular, leading to the standardization and industrialization of coffee. As a result, coffee emerged as a globally accepted "lifesaver", with daily consumption exceeding 3 billion cups.
Regrettably, the development of Oriental tea has lagged far behind that of coffee. Due to factors such as the late start of industrialization and challenges in achieving standardized practices, China, despite being the global source of tea products and the tea industry, has long been absent from the world stage of tea brands. Currently, none of the top ten global tea brands are from China.
The future of tea lies in the affection of young customers. To realize the globalization of Oriental tea, modernization is essential.
CHAGEE Makes Its Contribution to the Modernization of Oriental Tea
As an innovative representative of modern Oriental tea, CHAGEE has always centered its development around two keywords: Oriental tea and modernization.
Compared with the extensive production methods of the powder era and the small-ingredient era, the advent of the new tea drink era has significantly advanced the use of real ingredients in freshly made drinks. However, the pursuit of novel flavors with fruit and small ingredients has relegated tea to a secondary role, failing to meet consumers' demands for the taste, aroma, and essence of tea. Therefore, CHAGEE, which is deeply engaged in modern Oriental tea, has insisted on freshly brewing the original leaves since its inception. It keeps the ingredients as simple as possible with a "tea + milk" product structure, thus allowing tea to return to its essence.
At the same time, CHAGEE has deeply integrated Oriental tea with modern health concepts, ensuring that all its products have "no artificial flavors in the tea base, no creamers in the milk, and no trans-fatty acids in the whole cup of tea". To further assure consumers of safe and trustworthy drinks, CHAGEE has pioneered product ID cards and the "Calorie Calculator" in the fresh-made tea drink industry, taking the lead in piloting the "Nutritional Choice" label and the "Low GI" label. This makes the brand the first in the industry to publicly display product calorie values and nutritional components, significantly advancing product information transparency and health visualization of fresh-made tea drinks.
To promote a healthy lifestyle of tea drinking, CHAGEE has partnered with Chinese track and field athlete Liu Xiang as its global health ambassador, alongside other health ambassadors such as swimmer Wang Shun, tennis player Zheng Qinwen, and badminton players Chen Qingchen and Jia Yifan, collectively shaping a healthy image for Oriental tea.
In terms of standardized production, CHAGEE has employed a new generation of automated tea-making equipment, reducing the flavor error rate to 0.2% and increasing average serving efficiency to 8 seconds per cup. This provides consumers with a stable quality, uniform taste, and efficient modern Oriental tea experience.
As a fresh-made tea drink brand committed to sharing Chinese tea culture with the world, CHAGEE has achieved rapid growth in just over six years.
In 2023, CHAGEE's GMV surpassed RMB 10 billion for the first time, reaching RMB 10.8 billion. In Q1 of 2024, CHAGEE's single-quarter GMV exceeded RMB 5.8 billion, and its GMV is expected to surpass RMB 20 billion for the entire year. As of May 20, 2024, the number of the brand's registered members has exceeded 130 million, doubling in less than six months.
In 2023, CHAGEE's classic product JASMINE GREEN MILK TEA sold over 230 million cups within a year. Behind the growing repurchase rate of this product is CHAGEE's earnest effort to fulfill consumers' demands for product quality, experience, and health.
More importantly, an increasing number of young people have fallen in love with this cup of modern Oriental tea. At present, CHAGEE enjoys a diverse global consumer base, attracting a significant number of fans from the post-2000s and post-1990s generations, while also earning appreciation from consumers born in the 1970s and 1960s.
CHAGEE, MEET TEA & FRIENDS
To promote the coordinated development of tea culture, tea industry, and tea technology, CHAGEE is exploring modern tea technology and promoting the healthy development of the tea industry while inheriting and innovating upon a millennia-old tea culture.
A few days ago, to celebrate International Tea Day, CHAGEE launched its annual new product Mulan Milk Black Tea and customized exclusive tea culture badges to tell the 400-year legendary history of black tea. Over the past few years, CHAGEE has collaborated with cultural institutions such as the Palace Museum and Art Exhibitions China to promote traditional Chinese culture. The brand has continuously hosted a series of intangible cultural heritage activities, using tea to tell the stories of this heritage, thus revitalizing traditional culture in modern life.
In 2017, adhering to the mission of "CHAGEE, MEET TEA & FRIENDS", CHAGEE began its journey from Yunnan, the hometown of tea in the world. After six years of development, the number of its global stores has exceeded 4,500, with over 100 located overseas. "We hope to link every one of us every day with a cup of modern Oriental tea," said Zhang Junjie.
On this new "Ancient Tea Horse Road", CHAGEE uses cups of modern Oriental tea to convey tea culture and Chinese culture. The brand also uses tea as a medium to facilitate understanding between different countries and ethnic groups, deepening friendship and mutual trust.
At this forum, CHAGEE also released a global brand promotional video titled CHA. By showcasing scenes of individuals from various countries, ethnicities, and backgrounds raising a cup of modern Oriental tea together, the video illustrates how tea transcends borders, ethnicities, and skin colors, deeply integrating into the cultures and lives of people worldwide.
Zhang Junjie described Chinese tea as "staying united, starting anew, and going global—this defines modern Oriental tea." In the future, CHAGEE plans to serve consumers across 100 countries and regions, delivering 15 billion cups of modern Oriental tea each year. When a cup of modern Oriental tea appears in every corner of the world, it will awaken a shared consciousness about tea globally, witnessing the countless possibilities this ancient leaf can manifest in the new era.