Heytea started in 2012 as a premium tea brand, but it has since become entangled in the China tea wars, following a trend to go cheap. Consumer experts Ashley Dudarenok and Arnold Ma are two of a range of experts figuring out whether Heytea can survive in Campaign Asia. will international growth offset China’s quality challenges?
Campaign Asia:
Heytea helped define China’s modern tea boom. Launched from an alleyway stall in 2012, the brand popularised cheese tea and built a reputation for design-led, real-ingredient drinks that reset expectations in a crowded category. By 2025, it had grown to more than 4,000 stores across eight countries. Once positioned as a premium tea brand, Heytea turned to franchising and price cuts to chase mass-market growth, only to face quality control issues and oversaturation complaints from netizens about inconsistent stores clustered too closely together. Last year’s pivot saw Heytea issue two internal letters rejecting the ‘numbers game’ and ‘involution’ (内卷), competition for competition’s sake, urging a return to user focus and brand differentiation. Despite this, the brand launched Heytea Mini, a lower-priced sub-brand, while accelerating global expansion with 100+ stores across Asia, Europe, and North America, tailoring drinks for local palates. Campaign Asia-Pacific asked four experts whether Heytea can balance accessibility and premium positioning amid domestic pressures and price wars. And will international growth offset China’s quality challenges?
Ashley Dudarenok, founder & managing director Chozan: Heytea fell into the classic premium trap, building a killer ‘Starbucks of tea’ image, then slashing prices to battle low-cost rivals like Mixue amid economic squeeze, diluting their credential. Their anti-involution U-turn is the real story, publicly halting price wars and reinvesting in high-concept stores, genuine innovation like health-focused teas, and savvy cultural collabs to reclaim premium status. Global expansion isn’t a quick China fix but a smart halo play. Flagships in New York or Tokyo boost domestic prestige, reinforcing aspirational appeal back home without relying on short-term revenue offsets. Success hinges on three disciplined moves: elevating in-store experiences as destinations again, driving truly differentiated products, and building cultural capital that outshines gimmicks.
Arnold Ma, CEO/founder Qumin: The topic of ‘Heytea bids farewell to 30 yuan’ even became a trending topic, firing the first shot in the price war of the new tea beverage industry. The entire industry followed suit, with Nayuki, Chabaidao, and Hushang Ayi all offering increasingly lower prices. Heytea’s current reset suggests the brand recognises a hard truth: premium perception in China is fragile, but not permanently lost. Chinese consumers are pragmatic rather than sentimental. They will forgive strategic mistakes if quality, consistency, and intent are visibly corrected. Heytea’s earlier price cuts eroded its craft cred, store consistency and user focus, and its current anti-involution stance is damage control. To rebuild domestically and globally, it needs tighter store planning for better economics, reposition “accessible” as smart value through proven craftsmanship, and lead culturally via aesthetics and storytelling rather than gimmicks. Global expansion offers breathing room with less saturation, but won’t quickly offset China losses amid mid-tier rivals, spending fatigue and execution risks.
More experts at Campaign Asia.
Ashley Dudarenok and Arnold Ma are both speakers at the China Speakers Bureau. Do you need one of them at your meeting or conference? Do get in touch or fill in our speakers’ request form.
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