December 20 marks a milestone day for Mixue (蜜雪冰城) – it opened its first U.S. store. Apart from getting a foot in the door of a very lucrative market, the opening is a symbolic win, putting the brand on equal footing – reputationally at least – with big American chains that have for so long been frontrunners of the fast-food and beverage world.
Mixue secured a spot on L.A.’s Hollywood Boulevard, fittingly right opposite the famous Chinese Theatre. So how are they adapting to the demands of the U.S. market? Well, they’re sticking to their guns. Mixue’s core proposition has always been value-based, and that won’t change in the States. Their range of teas, ice creams and coffees generally fall between US $1.19 and US $4.99, undercutting comparable local competition.
Mixue are, however, adapting to local tastes: the grade of sweetness options usually capped at a tooth-searingly sweet 100% will run as high as 200% for American consumers. Mixue’s Snow King mascot took to the streets to get these sugar highs on the minds of consumers with pop-ups and promotions that paired drinks with free ice creams.
Regular Dao Insights readers will probably notice Mixue in our headlines a lot. Over the past few years the brand has been aggressively expanding – moves that see it taking over the beer trade and launching inroads to developing markets. They currently operate about 4,700 stores across 13 countries worldwide, all backed by a tight supply chain and economies of scale that allow them to keep prices low.
The result is a homegrown Chinese company that’s gaining serious chops as a brand to be reckoned with. In China this force majeure’s rise has not gone unnoticed, even among everyday consumers. On hearing the news of Mixue’s entry to the U.S. market, one online user commented that it’s as if ‘the family finally raised a top scholar.’ While Mixue’s new American customers might question the analogy, in China it’s very high praise.
