Hi Julie — thanks for the comment, I’m really glad you liked it. I’ve also learned a lot from your posts — they’re genuinely fresh and insightful 2 me. It would be great if we could keep exchanging ideas and comparing notes on beverage businesses especially cafe in China vs. Europe.
My next post will very likely be about coffee here, so let’s stay in touch：）
Sam, thanks for the informative/fascinating article.
I only have ever tried Chagee in SG and found the beverages truly outstanding. You mention that a few-SKU hero product structure won't survive. Is that something structural about the Chinese market or consumer preferences? B/c intuitively, I'd say something like that in Western markets (e.g. Blue Bottle w/ their NoLa iced coffee strategy) seems to work.
Hi Art Lapinsch — thanks so much for the thoughtful comment — and I’m happy to hear you enjoyed ChaGee in SG. I like them too, especially their ambition, the way they build culture into the brand, and beautiful tea-latte products.
On the question: I’d say the “few hero SKUs won’t survive” point might be very 【China-specific】.
In China, what’s happening is: once a product proves it can sell, it’s copied extremely fast, and often improved and made cheaper by competitors. From supply chain to store operations, every link is iterating at high speed. That’s why a 【static, few-SKU structure becomes fragile 】 here: the environment keeps moving, even if you don’t.
To be more precise: here, you may can lean on a few hero products for a while, but you can’t rely on them for 【too long】 unless you’ve built a real product moat — something only you can make, and others can’t easily copy or undercut.
Blue Bottle is a great counterexample.
I personally really like them — they’re a benchmark for high-quality beverage chains with a very skinny menu, and they’ve inspired a lot of Chinese founders on business model, product philosophy, aesthetics, and brand-building.
But the hard part is that, from the outside, 【we don’t have detailed, consistent financials for Blue Bottle (profitability, per-store revenue, long-term unit economics), so it’s difficult to assess how robust the business actually is, beyond the brand，especially in China】.
At least for now, I don’t see any Chinese offline beverage brand is selling product with BlueBottle-style menu.
What an epic read Sam! I am doing a similar study on independent cafés in Europe. And reading your piece inspired me x10, so thank YOU!
Hi Julie — thanks for the comment, I’m really glad you liked it. I’ve also learned a lot from your posts — they’re genuinely fresh and insightful 2 me. It would be great if we could keep exchanging ideas and comparing notes on beverage businesses especially cafe in China vs. Europe.
My next post will very likely be about coffee here, so let’s stay in touch：）
would love that!
excited to read your next post, thank you for letting me in and sharing next topic!
Very informative. Thanks!
Appreciate it — thanks Jennifer.
Sam, thanks for the informative/fascinating article.
I only have ever tried Chagee in SG and found the beverages truly outstanding. You mention that a few-SKU hero product structure won't survive. Is that something structural about the Chinese market or consumer preferences? B/c intuitively, I'd say something like that in Western markets (e.g. Blue Bottle w/ their NoLa iced coffee strategy) seems to work.
Thanks in advance.
Hi Art Lapinsch — thanks so much for the thoughtful comment — and I’m happy to hear you enjoyed ChaGee in SG. I like them too, especially their ambition, the way they build culture into the brand, and beautiful tea-latte products.
On the question: I’d say the “few hero SKUs won’t survive” point might be very 【China-specific】.
In China, what’s happening is: once a product proves it can sell, it’s copied extremely fast, and often improved and made cheaper by competitors. From supply chain to store operations, every link is iterating at high speed. That’s why a 【static, few-SKU structure becomes fragile 】 here: the environment keeps moving, even if you don’t.
To be more precise: here, you may can lean on a few hero products for a while, but you can’t rely on them for 【too long】 unless you’ve built a real product moat — something only you can make, and others can’t easily copy or undercut.
Blue Bottle is a great counterexample.
I personally really like them — they’re a benchmark for high-quality beverage chains with a very skinny menu, and they’ve inspired a lot of Chinese founders on business model, product philosophy, aesthetics, and brand-building.
But the hard part is that, from the outside, 【we don’t have detailed, consistent financials for Blue Bottle (profitability, per-store revenue, long-term unit economics), so it’s difficult to assess how robust the business actually is, beyond the brand，especially in China】.
At least for now, I don’t see any Chinese offline beverage brand is selling product with BlueBottle-style menu.
Makes lots of sense. Thanks for the clarification.
Looking forward to your next posts.