Vietnam Consumer Changes, Low-Price Strategy Fails, Chinese Tea Brand Mixue Cooling Down
Chinese tea beverage brand Mixue (蜜雪冰城), which became Vietnam's largest tea chain with a low-price strategy, is now seeing multiple store closures and market contraction. This is attributed to over-expansion and a shift in Vietnamese consumer preferences towards quality and experience over price. The brand, once hailed as a "red storm," faces intensified competition and rising operating costs, making it difficult to differentiate with just a low-price strategy.
📋 Article Processing Timeline
- 📰 Published: April 24, 2026 at 08:56
- 🔍 Collected: April 24, 2026 at 09:01 (5 min after Published)
- 🤖 AI Analyzed: April 24, 2026 at 09:33 (31 min after Collected)
Central News Agency
(Central News Agency reporter Zeng Ting-xuan, Hanoi, 23rd) Chinese tea beverage brand Mixue (蜜雪冰城) became Vietnam's largest tea beverage chain with its low-price strategy. However, Vietnamese media reports indicate that in recent months, multiple stores have closed, showing a contraction. Industry insiders point out that this is related to over-expansion. Moreover, compared to price, Vietnamese consumers now place more importance on quality and consumption experience, suggesting that Mixue's "craze may be cooling down."
Chinese ice cream and tea beverage brand Mixue, with its low-price strategy, rapidly expanded to become the world's largest chain restaurant in terms of number of stores, now exceeding 59,000, surpassing McDonald's (approximately 45,000) and Starbucks (over 40,000). Its largest overseas markets are Indonesia and Vietnam.
Mixue entered the Vietnamese market in 2018, attracting a large number of students and young consumers with its affordable prices. However, several Vietnamese media outlets point out that this restaurant chain, once hailed as a "red storm" for its astonishing expansion speed, has quietly closed multiple stores in Vietnam since the first half of last year.
Vietnam Net described Mixue's "bubble tea craze cooling down in Vietnam," stating that former Mixue stores are either vacant or quickly replaced by other businesses. Social media groups for tea shop owners are filled with information and photos of Mixue brand equipment for sale.
"Nhà đầu tư" (Vietnam Investor Magazine) reported earlier this month that Mixue sold ice cream and bubble tea at ultra-low prices, earning profits exceeding 22 trillion Vietnamese Dong (approximately NT$26.37 billion). However, at the same time, the Vietnamese market saw a decline after competing with other stores.
The 2025 financial report shows that Mixue Group's overall revenue was approximately US$4.81 billion, a 35% growth, mainly from raw material sales. But contradictorily, the group cut the number of stores in Vietnam and Indonesia for the first time. In just 6 months, its total number of international stores decreased by 162.
The largest Chinese milk tea chain was listed on the Hong Kong Stock Exchange in March 2025, but its stock price has fallen by about 50% since June 2025. Mixue launched a series of unprecedented online promotions in 2025, selling milk tea at approximately 8,000 Vietnamese Dong (about NT$10) per cup to attract consumers.
Vietnam Investor Magazine analyzed Mixue's dual-layer profit strategy for becoming a global expansion machine: "maximizing operational standardization based on a low-cost strategy."
Mixue does not operate directly, relying almost entirely on franchising. Initial investment requirements are low, and operational processes are simple, making it particularly attractive to small investors in developing markets.
Notably, Mixue's core business is not retail products but its supply chain. Mixue strictly controls raw materials. From tea powder, syrup, and creamer powder to operational supplies, all are supplied by the parent company to franchisees.
This model not only ensures consistent product quality across stores but, more importantly, allows Mixue to benefit from the entire supply chain ecosystem. Its revenue source shifts to selling raw materials to partners, rather than solely relying on single-store retail. In other words, "Mixue's operating model is more like a large-scale F&B supply chain enterprise than a pure milk tea brand."
Mixue's expansion in Vietnam began to face challenges, with store sizes shrinking. Mixue Group confirmed that it has closed underperforming stores in Indonesia and Vietnam, stating that the reason is to focus on optimizing the operations of existing stores.
However, industry experts analyzed to Vietnamese media that drastic changes in the Vietnamese F&B market are also a reason for Mixue's stagnant expansion.
"Nhà đầu tư" wrote that one of the key factors hindering Mixue's success is the excessively rapid expansion of its franchise model. At its peak, stores were densely located on many streets and residential areas. While the brand could quickly cover the market, it also created internal competition among franchisees.
Industry expert Tran Khanh Minh Son pointed out to Vietnam Net that this is a typical case of over-expansion, where revenue is dispersed, but it does not mean the brand will completely exit the market.
Second, the Vietnamese beverage market is entering a more mature stage, where consumers no longer choose solely based on price but increasingly value store experience, raw material quality, and brand image. "This shift means that Mixue's core strengths, namely low prices and standardization, are no longer sufficient for differentiation."
Third, rising rents and operating costs in major Vietnamese cities, coupled with Mixue's low-price positioning, make price increases difficult, further squeezing franchisee profit margins.
Finally, the rapid rise of Vietnam's local chain ecosystem, where these local brands better understand consumer tastes, can flexibly adjust menus, quickly adapt to market trends, and create more personalized in-store experiences and product innovations.
As Vietnamese emerging F&B trends change, experts believe that Mixue will face more intense market competition. Vietnam Investor Magazine points out that the challenges in Vietnam show that success in international markets does not mean adaptability to all markets.
"Mixue's scalable, low-cost expansion model can work effectively when demand grows rapidly and the market has huge growth potential, but it may face limitations when competition shifts to quality and customer experience." (Editor: Chen Hui-ping) 1150424
Choose to stand with facts, every sponsorship you make is a force to protect press freedom.
Download the Central News Agency "First-hand News" APP to stay updated with the latest news.
The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.
(Central News Agency reporter Zeng Ting-xuan, Hanoi, 23rd) Chinese tea beverage brand Mixue (蜜雪冰城) became Vietnam's largest tea beverage chain with its low-price strategy. However, Vietnamese media reports indicate that in recent months, multiple stores have closed, showing a contraction. Industry insiders point out that this is related to over-expansion. Moreover, compared to price, Vietnamese consumers now place more importance on quality and consumption experience, suggesting that Mixue's "craze may be cooling down."
Chinese ice cream and tea beverage brand Mixue, with its low-price strategy, rapidly expanded to become the world's largest chain restaurant in terms of number of stores, now exceeding 59,000, surpassing McDonald's (approximately 45,000) and Starbucks (over 40,000). Its largest overseas markets are Indonesia and Vietnam.
Mixue entered the Vietnamese market in 2018, attracting a large number of students and young consumers with its affordable prices. However, several Vietnamese media outlets point out that this restaurant chain, once hailed as a "red storm" for its astonishing expansion speed, has quietly closed multiple stores in Vietnam since the first half of last year.
Vietnam Net described Mixue's "bubble tea craze cooling down in Vietnam," stating that former Mixue stores are either vacant or quickly replaced by other businesses. Social media groups for tea shop owners are filled with information and photos of Mixue brand equipment for sale.
"Nhà đầu tư" (Vietnam Investor Magazine) reported earlier this month that Mixue sold ice cream and bubble tea at ultra-low prices, earning profits exceeding 22 trillion Vietnamese Dong (approximately NT$26.37 billion). However, at the same time, the Vietnamese market saw a decline after competing with other stores.
The 2025 financial report shows that Mixue Group's overall revenue was approximately US$4.81 billion, a 35% growth, mainly from raw material sales. But contradictorily, the group cut the number of stores in Vietnam and Indonesia for the first time. In just 6 months, its total number of international stores decreased by 162.
The largest Chinese milk tea chain was listed on the Hong Kong Stock Exchange in March 2025, but its stock price has fallen by about 50% since June 2025. Mixue launched a series of unprecedented online promotions in 2025, selling milk tea at approximately 8,000 Vietnamese Dong (about NT$10) per cup to attract consumers.
Vietnam Investor Magazine analyzed Mixue's dual-layer profit strategy for becoming a global expansion machine: "maximizing operational standardization based on a low-cost strategy."
Mixue does not operate directly, relying almost entirely on franchising. Initial investment requirements are low, and operational processes are simple, making it particularly attractive to small investors in developing markets.
Notably, Mixue's core business is not retail products but its supply chain. Mixue strictly controls raw materials. From tea powder, syrup, and creamer powder to operational supplies, all are supplied by the parent company to franchisees.
This model not only ensures consistent product quality across stores but, more importantly, allows Mixue to benefit from the entire supply chain ecosystem. Its revenue source shifts to selling raw materials to partners, rather than solely relying on single-store retail. In other words, "Mixue's operating model is more like a large-scale F&B supply chain enterprise than a pure milk tea brand."
Mixue's expansion in Vietnam began to face challenges, with store sizes shrinking. Mixue Group confirmed that it has closed underperforming stores in Indonesia and Vietnam, stating that the reason is to focus on optimizing the operations of existing stores.
However, industry experts analyzed to Vietnamese media that drastic changes in the Vietnamese F&B market are also a reason for Mixue's stagnant expansion.
"Nhà đầu tư" wrote that one of the key factors hindering Mixue's success is the excessively rapid expansion of its franchise model. At its peak, stores were densely located on many streets and residential areas. While the brand could quickly cover the market, it also created internal competition among franchisees.
Industry expert Tran Khanh Minh Son pointed out to Vietnam Net that this is a typical case of over-expansion, where revenue is dispersed, but it does not mean the brand will completely exit the market.
Second, the Vietnamese beverage market is entering a more mature stage, where consumers no longer choose solely based on price but increasingly value store experience, raw material quality, and brand image. "This shift means that Mixue's core strengths, namely low prices and standardization, are no longer sufficient for differentiation."
Third, rising rents and operating costs in major Vietnamese cities, coupled with Mixue's low-price positioning, make price increases difficult, further squeezing franchisee profit margins.
Finally, the rapid rise of Vietnam's local chain ecosystem, where these local brands better understand consumer tastes, can flexibly adjust menus, quickly adapt to market trends, and create more personalized in-store experiences and product innovations.
As Vietnamese emerging F&B trends change, experts believe that Mixue will face more intense market competition. Vietnam Investor Magazine points out that the challenges in Vietnam show that success in international markets does not mean adaptability to all markets.
"Mixue's scalable, low-cost expansion model can work effectively when demand grows rapidly and the market has huge growth potential, but it may face limitations when competition shifts to quality and customer experience." (Editor: Chen Hui-ping) 1150424
Choose to stand with facts, every sponsorship you make is a force to protect press freedom.
Download the Central News Agency "First-hand News" APP to stay updated with the latest news.
The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.