Introduction:In recent years, mainland tea beverage brands have been actively expanding into the Hong Kong market. On September 28, CHAGEE opened its first store in Hong Kong at K11 in Tsim Sha Tsui, inviting celebrity actress Esther Yip to promote the launch and rolling out various promotions that attracted large crowds of consumers who queued for hours. This article provides an in-depth analysis of the store’s design highlights, pricing strategy, promotional activities, and explores the current competitive landscape and future trends of Hong Kong’s tea beverage market, helping readers stay ahead with first-hand insights on both opening a business and making purchases.
Mainland-based new-style tea beverage brands have been actively establishing a presence in the Hong Kong market in recent years, with players such as Mixue Ice Cream & Tea, Heytea, Nayuki, and Shu Yeguo Herbal Tea already having set up shop. On September 28, 2024, CHAGEE, which positions itself in the mid-to-high-end market segment, chose to open its first Hong Kong store at K11 MUSEA in Tsim Sha Tsui. The outlet is located right next to Heytea and Nayuki, demonstrating the brand’s strong emphasis on the Hong Kong market. On its opening day, well-known actress Esther Yip was specially invited to attend, and promotions such as buy-one-get-one-free deals were launched, instantly drawing large numbers of customers who queued up. According to netizens, some people waited as long as three to five hours.
The K11 shopping district has always been a must-visit hotspot for mainland tourists coming to Hong Kong, especially during holidays when it gets extremely crowded. CHAGEE chose to set up its store within K11 MUSEA at 18 Haiphong Road in Tsim Sha Tsui, situated alongside other popular tea beverage brands in the vicinity. While Heytea occupies a relatively smaller storefront, CHAGEE makes full use of the limited space to showcase a refined design.
In terms of store design, taking into account Hong Kong’s high land prices and irregular spatial layout, CHAGEE specially adopted a folding window design to blur the boundary between indoor and outdoor spaces, creating an airy and expansive atmosphere. The overall color scheme continues the brand’s consistent visual style, blending a light golden tea hue with desert tones. The storefront incorporates traditional Chinese ink-wash landscape elements, creating a striking visual contrast with the metallic-textured bar counter and walls inside the store. This successfully merges traditional culture with modern aesthetics, presenting a high-end brand image.
Currently, the store offers six main beverages, including signature items such as Boya Juexian, Gui Fu Lan Xiang, and Wan Li Mu Lan. Prices range from HK$28 to HK$34 (approximately RMB 25 to RMB 30), which is slightly higher than the prices in mainland China — in the mainland, Boya Juexian, Wan Li Mu Lan, and Hua Tian Wu Long are all priced at RMB 16 per cup. However, during the National Day holiday period, customers can enjoy a buy-one-get-one-free deal by using coupons from the hk mini-program, bringing the effective per-cup price roughly in line with that in the mainland, making it quite a good deal for consumers.
Before the official opening, CHAGEE’s first Hong Kong store held a soft launch on September 20. Customers who visited the store that day received a free milk tea. In addition, the store organized several interactive activities. For example, participants who completed any two out of games such as hoop tossing, dart throwing, and bowling and collected the corresponding stamps could redeem limited-edition card packs, scarves, and Bauhinia badges. During the trial operation period, a social media check-in campaign was also launched where customers who uploaded photos or videos would receive a branded eye-catching tote bag. These initiatives attracted many young women to the store for photo opportunities, generating considerable exposure for the brand.
On the opening day, CHAGEE invited well-known Hong Kong actress Esther Yip to appear, further boosting the store’s popularity. However, the long queues became the biggest talking point of the day. According to feedback from users on social media platforms, to enjoy a cup of Boya Juexian, the average wait time was around three to five hours. Some customers noted that the morning queue time was only about two to three hours, but by the afternoon, the waiting time soared to over five hours.
Some analysts pointed out that such long queues might be related to the heavily discounted buy-one-get-one-free promotion on that day, which attracted a large number of consumers eager to try the drinks. Some netizens also advised avoiding peak hours in the afternoon, with some even jokingly suggesting, “Just go to Shenzhen to buy it — it’ll be faster,” or “Place an order in Hong Kong, then cross the border to Shenzhen to drink it and come back to buy a second cup in Hong Kong.” Though said in jest, these remarks reflect the intense queuing situation that day.
Regarding the successive entry of mainland tea beverage brands into the Hong Kong market and their launch of various promotions to attract consumers, local milk tea enthusiasts have generally expressed welcome. However, given the limited capacity of the Hong Kong market and the scarcity of retail space, competition among brands in the future is expected to intensify, and the market structure may gradually resemble that of the mainland, becoming highly competitive. For tea beverage brands aiming to enter Hong Kong, the key challenge going forward will be how to stand out in this limited market.
The above content is compiled by CoffeeHunters, a coffee news website.
