Can China’s budget brands crack developed markets? Mixue shows it won’t be easy

Chinese budget ice cream and tea brand Mixue is facing challenges entering developed markets like Japan. Alisa Lin, a former frequent customer in China, has not purchased from Mixue since moving to Tokyo three months ago, citing its lack of popularity and the comparable price of its basic teas to more inventive offerings from competitors. In Japan, a plain bubble tea from Mixue costs around 400 yen (US$2.46), which Lin considers not significantly cheaper than alternatives with more appealing flavors. Her purchasing decisions in Tokyo are primarily driven by value for money, and she would opt for a competitor if the price difference is minimal. This suggests that while Mixue's low prices are a draw in its home market, they may not be enough to overcome established preferences and competitive pricing in developed economies.