The Malaysian beverage market is experiencing a vibrant transformation with the emergence of prominent tea and beverage franchises like Mixue, Bingxue, and Wedrink. Each brand brings its own unique approach to the market, catering to diverse consumer preferences and leveraging innovative strategies to carve out market share.
Here’s a detailed look at each franchise, including financial requirements and strategic positioning in Malaysia.
Mixue Franchise Overview
Mixue, established by Zhang Hongchao in 1997, started in Henan, China as a bubble tea company and has expanded rapidly across the globe. As of late 2023, it boasts around 36,000 stores worldwide, with a significant presence in Southeast Asia.
Typical costs for setting up a Mixue franchise include:
- Trademark Royalty Fees: RM 14,000 per annum
- Security Deposit: RM 10,000
- Initial Stock Cost: RM 40,000
- Equipment Costs: RM 60,000
- Evaluation Fee: RM 500
- Total (so far): +-125,000
Mixue has quickly established a significant presence in Malaysia with over 300 outlets. Its aggressive pricing strategy, often showcasing products as low as RM3-4, has made it a popular choice among budget-conscious consumers, particularly students and young adults. Mixue has focused its franchise expansion on high-traffic areas like shopping malls and university campuses. This strategy, coupled with effective social media campaigns and consistent branding, has helped it rapidly increase its market share.
Bingxue Franchise Overview
Bingxue, established in Taian, Shandong Province, China, has significantly expanded its presence since opening its first store in 2014. Known for its distinctive combination of ice cream and tea drinks, Bingxue has grown to operate over 3,000 stores globally. In Malaysia, Bingxue has successfully captured the attention of the younger demographic with its trendy and affordable offerings, contributing to its rapid expansion.
Typical costs for setting up a Bingxue franchise include:
- Licensing Fees: RM 8,000 per annum
- Training Fees: RM 2,000
- Security Deposit: RM 10,000
- Initial Stock Cost: Over RM 40,000
- Equipment Costs: Over RM 60,000
- Evaluation Fees: RM 500 for KL and Selangor; RM 1,000 for Penang and Johor Bahru
- Total (so far): +-121,000
The franchise’s business model in Malaysia likely mirrors its global approach, which emphasizes quality ingredients, unique product offerings, and engaging marketing strategies. Bingxue’s international growth strategy includes a significant emphasis on localization and understanding consumer preferences in different markets, which helps in tailoring their offerings to meet local tastes.
Wedrink Franchise Overview
Under the umbrella of Runxiang Catering Group, Wedrink offers a range of Chinese tea drinks and has hundreds of branches across Southeast Asian countries, including Malaysia. It emphasizes quality and affordability, appealing particularly to young consumers with its modern café settings that contrast with traditional tea vendors.
Typical costs for setting up a Wedrink franchise include:
- Brand Licensing Fee: RM 8,000 annually
- Brand Service Fee: RM 5,000 annually
- Training Service Fee: RM 2,000 per store
- Brand Authorization Deposit: RM 10,000 (refundable)
- Initial Stock Cost: RM 30,000
- Equipment Costs: RM 60,000
- Site Selection Service Fee: RM 500 for KL/Selangor; RM 1,000 other areas
- Total (so far): +-116,000
With a focus on affordability and freshness, WeDrink has managed to carve out a niche in the competitive beverage industry. Their products, particularly popular in Thailand, appeal to both young and old thanks to their vibrant flavors and the innovative twist of combining traditional tea with modern dessert concepts.
Mixue vs. Bingxue vs. Wedrink: What’s the Total Estimated Cost?
Based on our careful review of the available data and considering a renovation cost of around RM 100,000 to RM 150,000 along with other miscellaneous costs, it is observed that the estimated total investment required to establish a franchise for brands like Mixue, Bingxue, and Wedrink typically ranges between RM 250,000 and RM 350,000.
This estimation is intended to serve as a guideline and may vary depending on specific brand requirements, location, and market conditions. Potential franchisees are advised to conduct thorough due diligence and consult directly with the franchisors for the most accurate and current financial requirements.
Sources: 1 | 2 | 3
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