The Mixue Success Story: A Deep Dive into the "Snow King’s" Franchise Empire
If you’ve walked through any major city in Southeast Asia or China recently, you’ve likely seen a bright red storefront featuring a snowman holding a scepter. This is Mixue Bingcheng, a brand that has taken the beverage world by storm.
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| Mixue |
While competitors like HeyTea or Starbucks focus on premium experiences and high price points, Mixue has conquered the market through a high-volume, low-cost strategy. Here is an in-depth look at the business model that made Mixue a global franchise powerhouse.
1. The Core Philosophy: Extreme Affordability
At the heart of Mixue’s business model is the concept of "Price Killer." In an industry where a cup of cheese tea or a latte can cost $5 to $7, Mixue offers soft-serve ice cream for less than $1 and large fruit teas for around $2.
This pricing strategy serves two purposes:
Low Barrier to Entry: It attracts students, low-to-middle income workers, and children—a massive demographic.
High Frequency: Because it is so cheap, customers don't view it as a luxury treat, but as a daily purchase, leading to massive sales volume.
2. The "Supply Chain First" Strategy
Many people believe Mixue is a tea company. In reality, Mixue is a supply chain company that happens to sell tea. Unlike many franchisors that take a large cut of store sales (royalties), Mixue makes the majority of its profit by selling raw materials to its franchisees.
Self-Owned Manufacturing: Mixue operates its own factories to produce ingredients like milk powder, sugar syrup, and fruit jam.
Centralized Procurement: By buying ingredients in massive quantities, they drive costs down to levels that independent cafes simply cannot match.
Logistics Network: They have established their own warehousing and delivery systems, ensuring that even remote franchise locations receive fresh stock at a low cost.
3. The Franchise Model: Scalability at Speed
Mixue uses a "Single-Store Franchise" model that is designed for rapid expansion. Here’s how they manage thousands of outlets:
| Feature | Strategy |
| Location | Focus on "high-traffic, low-rent" areas like school gates, narrow alleys, and suburban malls. |
| Store Size | Usually small footprints (15-30sqm) to keep overhead and utility costs at a minimum. |
| Automation | Highly standardized SOPs (Standard Operating Procedures) allow staff to be trained quickly, reducing labor costs. |
| Revenue Stream | Mixue charges a relatively low annual franchise fee but profits from the continuous sale of equipment and raw materials. |
4. Branding and the "Snow King" Intellectual Property
Mixue’s marketing is intentionally "loud" and viral. The mascot, Snow King, is everywhere—from giant inflatables outside shops to stickers and social media memes.
The brand’s theme song (a simple, repetitive jingle) became a massive viral hit on TikTok and Douyin. This "low-brow" but catchy marketing approach resonates with the masses and creates a strong brand identity that feels accessible and fun rather than elite.
5. Challenges and Risks
Despite its meteoric growth, Mixue faces significant hurdles:
Thin Profit Margins: Because prices are so low, franchisees must maintain extremely high sales volumes to remain profitable.
Quality Control: With tens of thousands of stores, ensuring consistent food safety and service quality is an ongoing battle.
Market Saturation: In many cities, Mixue stores are so close to one another that they risk "cannibalizing" their own sales.
Conclusion
Mixue’s success is a masterclass in vertical integration and market positioning. By controlling the entire supply chain and focusing on the "bottom of the pyramid" consumers, they have built a recession-proof empire that continues to expand globally.
The "Snow King" isn't just selling ice cream; he’s selling a highly efficient, industrialized system of consumption that prioritizes volume and value above all else.