No to involution: HeyTea puts franchising on hold.

Heytea issued a new internal letter to all its employees and customers on february 10th, nearly five months ago, reminding price wars and calling for differentiation from competitors.

Heytea pressed the pause button on franchising, returning to customers and brand," the email states that the "numbers game" in the "new-style" tea industry has become unprofitable.

Brands and products have become extremely homogeneous.

The problems and customers' needs being ignored are now affecting the entire “new-look” industry, with price wars and unnecessary expansion, as heytea points out.

Heytea has announced that it will continue its differentiation campaign and reiterated its pledge to reject low-priced involution and the "numbers game" tea market, despite this, it will not accept new partnerships.

Many franchisees are already promoting franchising on weibo, china's twitter equivalent, so the brand is also assisting existing franchisees in the meantime.

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Some people expressed reservations that heytea branches are too close to each other and that quality control has been a bit loose, and others believe the chain has fixed the price, which has been raised and rejected low.

With the “slimming bottles” gaining a lot of attention while differentiating heytea, it's likely that the tea chain's new approach, which is worth monitoring, is worth checking.

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