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 resembling Every A Cup and LiHo, one model stands out: CHAGEE.
Beforehand referred to as Ba Wang Cha Ji (霸王茶姬), the model has gained reputation 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 clients an opportunity to win merchandise from big-name manufacturers resembling YSL and Dior cosmetics.
Regardless of the reward from Singaporeans, many followers had been shocked when the model made a quiet and sudden exit firstly of 2024. Nonetheless, they didn’t have to attend lengthy for the model’s return, as CHAGEE opened their new outlet on 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 within the first place? Vulcan Submit spoke to CHAGEE’s execs to spill the tea.
Why did they depart within the first place?
In accordance with Lawrence Wong, CEO of CHAGEE Singapore, the corporate noticed “nice help” from the native market when it first opened in 2019, and at one level, it had opened 12 shops islandwide.
They managed to realize a loyal fanbase within 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 explanation for his or her abrupt exit, Lawrence acknowledged that it was a “strategic resolution.”
He first defined that CHAGEE Singapore beforehand operated by way of a franchise partnership mannequin. Nonetheless, he declined to remark additional when requested if he might elaborate on why it didn’t work out.
At present, the Singapore retailers are working underneath the direct possession of the principle firm based mostly in China—merely put, there are not any extra franchises for the model.
“[This is] to make sure that our teas stay enticing and accessible for tea lovers from all walks of life, with out compromising style and high quality,” mentioned Lawrence.
He added that CHAGEE additionally recognises Singapore’s place as a multicultural nation and a strategic location as a world enterprise hub. It has since arrange its SEA headquarters within 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 “prosperous shopper base coupled with a rising appreciation for premium tea merchandise” which will increase the model’s development potential within the nation.
Remodeling the enterprise
CHAGEE has opened three new “tea bars” in Central Singapore, all inside the similar 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 consumers and guarantee smoother buyer experiences, the model rolled out in-app ordering and supply and continually upgraded the ordering course of.
Jane Solar, CHAGEE’s APAC R&D Director, additionally shared that the model has a singular change coverage: They’ll remake your drink if you’re not happy with it, which turned out to not be the model’s solely edge.
For starters, CHAGEE just isn’t a bubble tea model as they don’t supply pearls or toppings to encourage clients to expertise the “authentic tea style.”
Nonetheless, provided that Chinese language tea making has had a wealthy historical past for hundreds of years, it appeared unrealistic for the youthful demographic to understand the artwork, as they typically prioritise pace and comfort.
“We hope to attach individuals and cultures by an amazing cup of tea, but additionally perceive that conventional tea tradition has fairly a excessive entry barrier,” Lawrence emphasised.
Therefore, the corporate launched into a mission to modernise the tea-drinking expertise and relooked at their retailer ideas and general strategy—finally pivoting from their takeaway kiosks for snug dine-in, sit-down tea bars.
Except for providing a brand new menu, the corporate has additionally leveraged expertise with their semi-automated tea-making gear to extend their shops’ general effectivity, in addition to a Product ID Card and a Well being Calculator on the CHAGEE app.
In accordance with Gao Hongbo, CHAGEE’s Director of Singapore Consumer Operations, these options are “a primary” to be provided within the ready-to-drink business.
“Know-how and innovation play an important function within the development and evolution of the CHAGEE model and enterprise in establishing itself as a world fashionable oriental tea model,” mentioned Hongbo.
Extra plans brewing forward
CHAGEE is about to proceed rising its international presence, having expanded from greater than 4,000 retailers to over 5,000 shops within 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 return past the central area by the top of 2024.
Lawrence, who beforehand labored at foodpanda Singapore as a CEO, expressed his ambition to remodel the model to turn into the “foremost model within the beverage business”, 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 additionally conjures up clients to return to our shops repeatedly. A key side of this focus is enhancing the digital expertise, guaranteeing that each interplay from ordering and ready for supply is clean and pleasing for our clients.
Lawrence Wong, CEO of CHAGEE Singapore
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Featured Picture Credit score: CHAGEE Singapore
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