Why Does the China Coffee Market Keep Expanding Into Hong Kong?

ChaPanda opened its first Hong Kong store on October 11 in Mong Kok, on the ground floor of Far View Building on Sai Yeung Choi Street South, with monthly rent of about HK$200,000. The street-side shop uses a grab-and-go model with no seating and sells roughly 20 drinks priced at HK$25 to HK$32.

The move follows other mainland new-style tea and coffee brands entering Hong Kong. ChaPanda's opening drew crowds, with some customers waiting more than half an hour, and mango pomelo sago costs about 70 percent more than on the mainland. Promotions included buy-one-get-one-free offers and scratch cards, with TVB artists attending the event.

Mainland new-style tea beverage brands continue to enter the Hong Kong market. ChaPanda opened its first Hong Kong store on October 11 in Mong Kok, located on the ground floor of Far View Building on Sai Yeung Choi Street South, with a monthly rent of about HK$200,000. Unlike the mall-store approach of Chagee, ChaPanda focuses on a street-side express pickup model, with no seating inside the store. The store offers about 20 drinks, priced at HK$25 to HK$32, among which mango pomelo sago is about 70% more expensive than on the mainland. During the opening period, it launched activities such as buy-one-get-one-free and scratch cards, and invited TVB artists including Bosco Wong to boost the event. The scene was extremely crowded, with some customers queuing for more than half an hour.

The pace at which mainland chain tea beverage brands are opening stores in Hong Kong is still accelerating. After Chagee, ChaPanda officially announced on October 11 that its first Hong Kong store had opened to customers.

This store is located at Shop 30, Ground Floor, Far View Building, 30 Sai Yeung Choi Street South, Mong Kok, Kowloon, only about 300 meters from Mong Kok MTR station. According to Hong Kong media reports, the monthly rent for the shop is HK$200,000.

Sai Yeung Choi Street South is located east of Nathan Road and Cheung Sha Wan Road. It is a well-known tourist street area locally, with a very down-to-earth style. Various local specialty snacks line the street, and it is also a place Hong Kong residents love to visit in daily life. Every year, a large number of out-of-town tourists come here to experience the local atmosphere, so it is regarded as the top route for a Mong Kok citywalk.

According to media reports, unlike the mall store chosen by Chagee, ChaPanda's first Hong Kong store is on the ground floor of an office building and takes the form of a street-side shop. Its core selling point is the "grab-and-go" express pickup model, so no seats are arranged inside the store.

What is striking is that a huge Chinese-style tea bowl is installed on the store's glass wall. The inside of the bowl features a hollowed-out design, displaying scenes of ChaPanda's signature baby panda visiting multiple Hong Kong landmarks, making the local elements quite prominent.

Before the official opening, ChaPanda's first Hong Kong store began a trial operation on September 30. During the trial period, designated products were available at a 20% discount, and customers also received Hong Kong-exclusive city fridge magnets, limited wrist bags, summer cooling fans, and other merchandise.

On the official opening day, October 11, ChaPanda launched a buy-one-get-one-free promotion on six classic tea drinks. In addition, customers who bought any drink (excluding toppings) also received a lucky scratch card with their order. Prizes included limited-edition gold banknotes, ChaCha blind box merchandise, mugs, limited wrist bags, and free milk tea vouchers.

On the opening day, ChaPanda also invited Bosco Wong and several other TVB artists to visit and check in. The atmosphere on site was pushed to a high point, and it also attracted a lot of popularity for the first Hong Kong store.

At present, ChaPanda's first Hong Kong store has launched about 20 drinks, covering product series such as fresh fruit specials, fresh milk specials, and milkshakes. These include mango pomelo sago, green grape jasmine, super cup fruit tea, soy milk jade qilin, and signature taro balls, which sell well on the mainland. Prices per cup range from HK$25 to HK$32.

It should be noted that ChaPanda's product variety in Hong Kong is not as rich as on the mainland, and prices have also risen compared with the mainland. Taking a medium mango pomelo sago as an example, it sells for 17 yuan on the mainland and HK$32 in Hong Kong, equivalent to about 29 yuan based on the exchange rate on the opening day, an increase of about 70%.

Even so, ChaPanda's first Hong Kong store was still very popular with local consumers during its opening period. A netizen shared on social media that when she and her friends were shopping in Mong Kok, they saw a long queue on the street. Only when they got closer did they realize it was ChaPanda's opening, and the whole store was bustling. To drink the familiar mango pomelo sago, this netizen queued for more than half an hour.

"When I traveled to Chengdu before, I drank ChaPanda's mango pomelo sago every day. After returning to Hong Kong, I often craved it. Now I can drink it in Hong Kong too." A local Hong Kong customer at the scene said.

Another local Hong Kong milk tea lover said: "I very much welcome these mainland tea beverage brands to Hong Kong. They are cheap and have a rich variety. If you are used to Hong Kong milk tea, you can try some new flavors."

It is understood that ChaPanda was founded in Chengdu in 2008. As of the end of June this year, its number of stores had exceeded 8,000, and it has already entered overseas markets such as South Korea, Thailand, and Australia.

However, regarding future plans for opening stores in Hong Kong, ChaPanda did not disclose more information.

Image source: Internet

The above content is compiled by CoffeeHunters, a coffee news website.