targeted consumer segments. These region-specific
events created a dynamic atmosphere for brand-
consumer interaction, reinforcing both online and
offline engagement and amplifying the brand’s
topical relevance across multiple channels.
CHAGEE’s UGC strategy is further reinforced
through structured mechanisms that encourage and
guide user content creation. By leveraging
community management, interactive mechanisms,
and incentive systems, the brand motivates
consumers to share product reviews, packaging
experiences, and co-branded merchandise. On
RedNote, for instance, user-generated reviews of
CHAGEE’s products have surpassed tens of
thousands of posts, covering aspects such as flavor,
packaging aesthetics, and brand storytelling. These
authentic testimonials not only strengthen the brand’s
credibility but also serve as crucial reference points
for potential customers. Additionally, CHAGEE
utilizes a combined UGC and social viral strategy by
implementing user-specific challenges, limited-time
tasks, and interactive rewards to incentivize sustained
consumer participation. This approach helps the
brand maintain high visibility and engagement across
platforms.
4 COMPARATIVE ANALYSIS OF
DIFFERENTIATION WITH
COMPETITORS
In China’s rapidly evolving new-style tea beverage
market, CHAGEE has established a distinctive
competitive positioning in contrast to brands such as
HEYTEA and Nayuki. In terms of brand identity,
both HEYTEA and Nayuki emphasize fruit-based
teas priced above 25 RMB and adopt minimalist,
modern design aesthetics often likened to the iOS-
style visual language. In contrast, CHAGEE positions
itself as a “new Chinese-style Guofeng tea brand,”
gaining consumer recognition through its focus on
original-leaf milk tea and its strong integration of
traditional Chinese cultural elements. This strategic
differentiation has allowed CHAGEE to carve out a
unique niche in the increasingly crowded tea market.
Regarding store design and spatial strategy,
Nayuki applies a “large store + small store” model
and emphasizes the “third space” experience, while
HEYTEA employs a lighter, more contemporary
interpretation of new Chinese-style tea spaces.
CHAGEE’s stores, by contrast, are deeply rooted in
oriental aesthetics and cultural expression, blending
traditional and modern elements to create a distinctive
brand experience. Its interior design incorporates
traditional opera costumes, natural wood textures,
hand embroidery, and mortise-and-tenon
architectural craftsmanship—offering a fresh and
immersive spatial experience that sets the brand apart.
From a product strategy perspective, CHAGEE’s
positioning of “healthy tea beverages + oriental
culture” has formed a clear competitive barrier. A
notable trend in the tea beverage industry is the
growing emphasis on "cultural tea" as brands seek to
differentiate themselves. HEYTEA has also begun to
embrace oriental aesthetics—for example, its store in
Sanlitun, Beijing incorporates imperial gold color
palettes, stone-inspired door handles, bamboo-leaf
wall motifs, lanterns, and Chinese calligraphy in its
interior design, signaling a shift toward culturally
resonant branding (Tea Beverage Competitive
Analysis Report, 2023). This trend illustrates that
CHAGEE’s cultural strategy is influencing industry
direction, while also attracting intensified
competition from peers seeking to emulate its
approach.
CHAGEE’s market competitiveness is further
reflected in the performance of its flagship products.
According to industry data, its signature drink "Bo
Ya’s Lament" sold approximately 230 million cups in
2023 alone. At an average price of 16 RMB per cup,
this single product accounted for roughly 34% of the
brand’s total annual revenue. This strong single-
product effect has also drawn competitive attention.
In 2024, Luckin Coffee launched a jasmine tea
product called “Qingqing Jasmine” at a price of 9.9
RMB, widely seen by consumers as a budget-friendly
substitute for CHAGEE’s "Bo Ya’s Lament." This
kind of cross-category competition underscores
CHAGEE’s product influence, which has extended
beyond the boundaries of traditional tea beverages.
Functionally, CHAGEE aims to position itself as
the “Oriental Starbucks,” as noted by its founder in a
public address. Its products, such as “tea lattes,” are
designed to offer functional benefits comparable to
coffee. For instance, the new product "Mulan’s
Journey," launched in May 2024, contains
approximately 292.8 mg of tea polyphenols per cup,
delivering a strong energizing effect and directly
competing with coffee in terms of functional
performance. This functional differentiation enables
CHAGEE to compete not only within the tea market
but also within the broader energy beverage segment.
In terms of future development, CHAGEE has
demonstrated robust expansion capabilities and
strong potential for international growth. According
to data from Qichacha, the brand has registered 390
trademarks and holds 4 patents, supported by a well-