China High-End Tea Prices In Decline, Chinese Tea Shops Changing Strategies

China’s Tea Industry Association released information regarding the Chinese market for high end teas. The prospects are not positive as upscale tea sales have declined anywhere between 10 to 50%. Especially provinces who are famous for producing black suffered the most. Besides black tea, the famous Xinyang Maojian as well as high-end Tie Guan Yin are in decline.

The only two tea categories that are on the rise are white teas from Fuding as well as Pu’er teas from Yunnan.

Due to the above trends, tea shops in China are slowly adjusting their strategies, which include the following:

1. Spend less on expensive packaging
2. Sell smaller portions when it comes to high-end tea
3. Offer more value for money assortment.

The Hubei Lu Yu Tea Culture Research Association also confirms that the luxury market is in decline in Hubei. Given the high operating cost, the this market segment is challenging to be in. Meanwhile, the association also reports that low-end teas (below 100 RMB/15USD per KG) is showing a steady but slow rise in prices.

Sources:

http://hb.ifeng.com/news/cjgc/detail_2014_07/10/2568653_0.shtml

http://news.163.com/14/0710/06/A0P8A9HA00014Q4P.html