Mixue, a rapidly expanding bubble tea chain, has taken the food and beverage industry by storm with its remarkable growth. With over 45,000 outlets in China and across 11 other countries, Mixue surpasses global giants such as McDonald's and Starbucks in terms of store count. The company's recent initial public offering (IPO) in Hong Kong raised an impressive $444 million, marking the financial hub's largest IPO of the year. Mixue's strong market debut stands in stark contrast to its smaller rival, Guming, whose shares declined on the first day of trading earlier this year.
Founded in 1997 by Zhang Hongchao, then a student at Henan University of Finance and Economics, Mixue began as a part-time venture to support his family's finances. Today, it has grown into a formidable player in the industry, selling ice creams and drinks at an average price of six Chinese yuan ($0.82; £0.65). The company's business model resembles that of a raw-materials supplier rather than a traditional brand, as it operates predominantly through franchisees.
Mixue's listing on the Hong Kong Stock Exchange saw its shares soar by nearly 30% on the first day, underscoring investor confidence in its growth potential. This success highlights the company's unique approach and strategic positioning in the market. Unlike its competitors, Mixue emphasizes affordability and accessibility, catering to a diverse customer base during challenging economic times in China.
Mixue's full name, Mìxuě Bīngchéng, translates to "honey snow ice city" and aptly captures the brand's essence. Its outlets are easily recognizable, featuring the cheerful Snow King mascot and playing the firm's official theme tune on loop. This cohesive branding strategy contributes to its widespread appeal and market presence.
The company's international footprint extends beyond China to countries such as Singapore and Thailand, showcasing its ambition to capture a larger share of the global market. This expansion strategy has proven effective, drawing attention from investors and consumers alike.