Lates News

CITIC Securities research report stated that in August, the instant beverage industry was affected by the slowdown in subsidies from third-party delivery platforms, and the expansion speed of national milk tea and coffee shops showed a slowdown compared to the previous month. In terms of opening new stores, there is a significant differentiation in the tea beverage sector, with brands such as Teatop and Bawang Tea keeping a leading number of new openings, while the speed of new store openings for HEYTEA has noticeably slowed down. The penetration rate of coffee continues to rise, with brands such as Luckin, CoCo, and Luckin Coffee opening stores at a faster rate, while the number of Starbucks stores is maintaining a slow growth trend. In terms of store performance, the growth rate of store performance for high-end brands has generally slowed down, and the store performance of various mid-range price brands has seen a year-on-year growth rate of 10% to 20%, with some internal differentiation present. In terms of investment strategy, some investors are worried about the performance of the industry next year with a high base. CITIC Securities believes that top brands with product innovation and offline traffic diversion capabilities are expected to withstand the cycle, while actively monitoring the potential growth of brands in overseas markets.