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Mixue: The Race to Stay Ahead in the Asian Tea Industry
Founded in 2006, Mi Xue Bing Cheng (Mixue) had become widely popular in the Chinese market by June 2021. Mixue achieved very high levels of growth by using a low-price high-volume strategy, a clever marketing campaign, and an unconventional geographic expansion strategy that emphasized secondary markets. However, the domestic market was becoming too saturated. Seeing Mixue gain recognition, new competitors started imitating its business model and developing a fiercely competitive market. Mixue's chief executive officer, Hongfu Zhang, was wondering how to sustain the company's high growth rate. Should Mixue continue following its original strategy or adopt a new and different approach that includes international expansion?