Mixue’s Expansion and Strategy Updates
Mixue, a popular milk tea brand, has recently shared details about its operations. While the company did not specify how many stores it closed in Vietnam and Indonesia, its latest financial report indicates a shift towards improving the efficiency of existing stores. The focus is on ensuring these stores operate sustainably over the long term.
Despite closing some outlets, Mixue is also making strides in other countries. The company has opened new stores in the U.S. and Kazakhstan and launched its first outlets in Malaysia and Thailand under the name “Lucky Cup.” As of last year, Mixue boasted around 59,823 outlets globally, with 55,356 located in mainland China.
Vietnam and Indonesia are key markets for Mixue, with 1,304 stores in Vietnam as of September 2024, according to documents filed for an upcoming IPO in Hong Kong in early 2025. In Vietnam, Mixue is transitioning from smaller shops to larger spaces. The new locations feature bigger preparation areas, storefronts that face the street, and an emphasis on prime spots.
Entering Vietnam in 2018, Mixue initially focused on Hanoi and the northern provinces but has since spread throughout the country. The brand offers a variety of drinks, including lemonade, ice cream, milk tea, and fruit tea, all priced affordably between VND10,000 and VND30,000.
To keep prices low, Mixue manages its supply chain carefully, covering everything from raw material production to logistics and quality control. A 2024 report from the store management platform iPOS noted that Mixue has significantly impacted Vietnam’s milk tea market, particularly in the affordable beverage segment, thanks to its aggressive franchising strategy.
Looking ahead, Mixue plans to strengthen its presence in Southeast Asia and expand its network of franchisees in the region. The company’s revenue rose by 35% last year, reaching RMB33.56 billion (approximately US$4.9 billion), with net profits increasing by 33% to RMB5.93 billion.
