Summary of Key Points
The marketing campaign for “the first cup of milk tea in autumn” during the Start of Autumn season led to a surge in orders for some milk tea shops, but the enthusiasm was lower than last year. The low-price subsidies offered by delivery platforms have largely disappeared, with the focus shifting to high-priced brands like Starbucks. This reflects a new trend in the delivery industry: rather than competing on extreme low prices to attract customers, platforms are targeting users with higher purchasing power and adopting more sophisticated operations. However, this comes with new challenges, such as increased delivery costs and difficulties in negotiating with brands.
1. Milk Tea Orders Are Still High, but the Frenzy Has Subdued
This year, milk tea shops were indeed very popular. Office workers had to wait for their orders (some could only be placed the next day), and delivery drivers mentioned that brands like Jasmine Milk White and Cha Baidao experienced a surge in orders. Some stores of brands like Overlord Tea Ji and Xicha even closed due to hundreds of orders. However, the overall frenzy was less intense than last year, with most shops receiving fewer than 30 orders. This indicates that the marketing concept of “the first cup of milk tea in autumn” is still around, but users’ interest and participation have decreased slightly. Additionally, with fewer platform subsidies, fewer people are ordering just to take advantage of low prices.
2. Low-Price Promotions Are Gone, and Milk Tea Prices Have Returned to “Normal Levels”
Last year, it was common to see milk tea offered for free or at very low prices (below 5 yuan). This year, such promotions have disappeared due to regulatory measures aimed at stopping excessive price competition. Platform subsidies are now more restrained:
- Low-price offers are either in limited quantities (e.g., a 1.9 yuan fruit bucket on Taobao Flash Sale or a 6.9 yuan Kudi Coffee that sells out quickly) or require a certain threshold to be eligible (e.g., Meituan coupons offering a 18 yuan discount for orders over 18 yuan).
- The promotional prices of mainstream milk tea brands have returned to around 10 yuan: for example, Cha Baidao and Hu Shang A Yi offer 8.9 yuan coupons that can be used on all their products, while Luckin Coffee is now 10.5 yuan after discounts.
In short, platforms are no longer offering generous free promotions; instead, they use limited-time discounts to attract customers without incurring significant losses.
3. Starbucks Has Become the “New Battleground,” with High-Price Brands Being Targeted
Starbucks has traditionally maintained higher prices (around 30 yuan per cup). This year, during the Start of Autumn season, it became a focal point for price cuts:
- Many users shared their orders on social media, indicating they were able to buy Starbucks products for 4 or 6 yuan.
- With additional platform discounts, Starbucks cups can be purchased for less than half the regular price. For example, Taobao Flash Sales offer 50% or 75% off, and Meituan offers a 12.9 yuan coupon that matches Luckin Coffee’s prices.
The reason platforms are targeting Starbucks is that its customers have higher purchasing power and are more likely to spend more on other products, generating greater profits for the platforms.
4. Why Are Platforms Turning to High-Value Orders?
Platforms are shifting their strategy because they no longer want to lose money through excessive subsidies. Regulatory restrictions have also made this necessary. For example, Meituan CEO Wang Xing has stated that high-value orders represent a more profitable market. Taobao Flash Sale has also indicated that it is moving beyond the phase of “burning money to increase traffic” and focusing on high-value food and non-food orders (such as its “Home Banquet” initiative for Michelin-rated restaurants).
In other words, platforms want to attract customers who will actually generate revenue rather than those who only buy low-priced items.
5. The Challenge of High-Value Orders
Switching to high-value orders is not easy, and platforms face several challenges:
1. Higher Delivery Costs: High-end food (like Michelin-rated restaurants) requires better delivery services (thermal preservation, proper presentation), which increases delivery costs.
2. Greater Compensation Risks: If high-end food is damaged during delivery, the compensation amounts are much higher than for milk tea.
3. Stronger Brand Negotiation Power: Brands like Starbucks and Michelin are less willing to comply with platform terms, limiting the profit margins for platforms.
4. User Habits: Most people still prefer to order milk tea and fast food via delivery; it will take time to change their habits and make them purchase high-end products through these platforms.
In summary, delivery platforms have moved beyond the era of “whoever offers the most subsidies wins.” The focus is now on providing excellent service to high-value customers. Behind this shift in marketing strategies is a transformation of the industry from rapid growth to more refined and targeted operations.
(The entire analysis is written in plain language, making it easy for non-financial professionals to understand.)