In the bustling streets of Chinese cities, a bright yellow-and-pink logo has become a familiar sight. Mixue Bingcheng, a Chinese bubble tea and ice cream chain, has quietly grown into one of the most prolific retail brands in the world. With over 45,000 stores globally — more than McDonald’s or Starbucks — Mixue has captured the hearts (and taste buds) of millions. Its rapid rise is not just a story of sweet treats and savvy marketing; it’s a masterclass in how to scale a business in a competitive market. For British businesses, there’s much to learn from this Chinese phenomenon.
Humble beginnings
Mixue’s story begins in 1997 in Zhengzhou, a city in central China’s Henan province. Founded by Zhang Hongchao, the company started out as a small ice cream shop. Zhang’s vision was simple: to provide affordable, high-quality drinks and desserts to the masses. While other brands chased premium pricing and urban elites, Mixue focused on value for money, targeting students, young workers and smaller cities. This strategy proved to be a game-changer.
By keeping prices low – its signature ice cream cones sell for just 2 yuan (about 22 pence) – Mixue made itself accessible to a vast audience. Its menu, featuring bubble tea, fruit teas and soft-serve ice cream, is both indulgent and affordable. This combination of affordability and consistency has been key to its success.
Scaling at speed
Mixue’s expansion strategy is nothing short of remarkable. The company operates on a franchise model, which has allowed it to grow rapidly without the heavy capital expenditure typically associated with such expansion. Franchisees are drawn to Mixue’s low entry costs and strong brand recognition. The company provides extensive training and support, ensuring that every store maintains the same standards of quality and service.
This model has enabled Mixue to penetrate not only China’s megacities but also its smaller towns and rural areas. While Western brands often focus on affluent urban markets, Mixue has tapped into the vast potential of China’s lower-tier cities, where disposable incomes are rising, and consumer demand is growing.
But Mixue’s ambitions don’t stop at China’s borders. The company has expanded into Southeast Asia, Australia and even Japan, adapting its menu to local tastes while maintaining its core identity. This global outlook is another lesson for British businesses: think big, even if you start small.
The power of branding
Mixue’s branding is another cornerstone of its success. Its cheerful logo, featuring a snowflake and a smiling cartoon character, is instantly recognisable. The company has also embraced digital marketing, leveraging social media platforms such as WeChat and Douyin (China’s version of TikTok) to engage with younger consumers.
One of Mixue’s most successful campaigns involved user-generated content. Customers were encouraged to share photos and videos of their Mixue drinks, creating a buzz online. This grassroots approach to marketing has helped the brand build a loyal following, particularly among Gen Z consumers.
For British businesses, Mixue’s branding offers a valuable lesson: authenticity resonates. In an age where consumers are increasingly sceptical of traditional advertising, brands that can create genuine connections with their audience stand out.
Lessons for British businesses in China
Mixue’s rise holds several lessons for British businesses, particularly those looking to expand or compete in crowded markets.
First, affordability matters. In a cost-of-living crisis, consumers are more price-sensitive than ever. Mixue’s ability to deliver quality at a low price point has been central to its success. British businesses, especially in the food and beverage sector, could benefit from adopting a similar value-driven approach.
Second, don’t overlook smaller markets. While London and other major cities often dominate the UK’s retail landscape, there’s untapped potential in smaller towns and rural areas. Mixue’s success in China’s lower-tier cities shows that growth opportunities exist beyond the big urban centres.
Third, embrace digital innovation. Mixue’s use of social media and user-generated content highlights the importance of digital engagement. British businesses should consider how they can leverage social platforms (including Instagram, TikTok, and YouTube at home) to connect with younger audiences.
Finally, think globally. Mixue’s international expansion demonstrates the potential of taking a local brand to the global stage. For British businesses, particularly those with strong heritage or niche offerings, there may be opportunities to replicate this success abroad.
Challenges ahead
Despite its impressive growth, Mixue faces challenges. The bubble tea market is becoming increasingly crowded, with more upscale competitors like Heytea and Nayuki vying for market share. Maintaining quality and consistency across thousands of stores is no mean feat, and the company must continue to innovate to stay ahead.
There’s also the question of sustainability. As consumers become more environmentally conscious, brands are under pressure to reduce their environmental impact. Mixue has yet to make significant strides in this area, and this could become a sticking point as it expands further.
For British businesses, these challenges serve as a reminder that growth must be sustainable – both financially and environmentally. Brands that can balance rapid expansion with responsible practices will be better positioned for long-term success.
A sweet opportunity
Mixue’s rise is a testament to the power of a clear vision, strong branding, and a focus on affordability. Its story is particularly relevant for British businesses navigating an uncertain economic landscape. By learning from Mixue’s playbook, UK brands can find new ways to connect with consumers, explore untapped markets, and scale their operations effectively.
Mixue made its debut on the Hong Kong Stock Exchange on Monday, 3 March, raising $444 million in an IPO by selling 17 million shares in the deal at a fixed price of HK$202.5 each, with shares jumping as high as HK$298 on the first day of trading. But beyond the financial headlines, there’s a broader lesson here: in a world of constant change, businesses that stay true to their values while adapting to new realities are the ones that thrive. For British entrepreneurs and established brands alike, Mixue’s journey offers a refreshing dose of inspiration – and perhaps a hint of what’s possible with the right mix of ambition and strategy.
So, the next time you see a bright yellow-and-pink logo, take a moment to consider the story behind it. Mixue isn’t just serving up sweet treats; it’s serving up a masterclass in modern business.
