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BEVERAGE COMPANY BOUNCES BACK


A HONG KONG TEA SUPPLIER WAS ON THE BRINK OF GIVING UP DURING THE COVID-19
PANDEMIC BUT HAS SEEN A REVIVAL IN ITS FORTUNES.

15 July 2022

The COVID-19 pandemic almost forced Vivian Mak, the founder of MingCha, to give
up her 20-year-old tea business.

“The number of tourists and business travellers is almost zero, and the number
of hotel and Macao casino visitors has plummeted, which has caused the sales of
tea gifts and tea-tasting activities to fall significantly,” Ms Mak said.
“Revenue dropped between 20% to 50% from the peak period. I could not see the
way forward, and I once even doubted on my initial purpose in building the
brand”

Ms Mak faced problems beyond the pandemic such as the expiry of lease terms and
staff changes. The stress took a toll on her health, leading to tooth-grinding
and a hoarse voice which made her to want to close the business. She fell into a
state of panic.

“I received an order of more than HK$1 million [US$127,000] with a well-known
international logistics company but it fell through because of the payment
arrangement. It was a waste of a great opportunity. After all, worrying too much
madeus lose mutual trust.”

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DONOR BOOST

Fortunately for Ms Mak, when one door closed, another opened. At the point where
she was at her most hesitant and helpless, new projects came in one after
another, bringing her a steady income and taking the firm safely through the
difficulties.

For example, in order to thank frontline medical staff for their hard work
during the fight against the pandemic, a donor ordered 7,400 sets of Jasmine
Blossoms, Rose Buds and Honey (Rose and Osmanthus) from MingCha.

“This thoughtful move has brought a taste of sweetness and positive energy to
the medical staff, and I have also benefited from it because many of them have
come back to buy various products."

BACK TO TOP ^


BREWING OPPORTUNITIES


Ms Mak sees new business opportunities emerging during the hard times. The
traditional tea-brewing process is rather complicated and limited by time and
space, but the award-winning Tea Companion, a thermal brewing bottle, is safe
and convenient, and preserves the aroma and taste of tea.

"During the pandemic, the public started paying more attention to personal
hygiene, and the tea-set on-the-go concept allowed consumers to enjoy tea
anytime, anywhere," she said.

The brewing vacuum flask cleverly combines "tea" with "drinking", which drew a
lot of business and was especially popular amongfinancial institutions, Ms Mak
said.

"Many financial institutions have ordered them as corporate gifts for staff and
valued customers, especially those who have to travel frequently and undergo
quarantine during the epidemic."

BACK TO TOP ^


BUILDING THE BRAND




The witty design makes the Wellness series more homely


Ms Mak eventually realised she wanted to continue developing and creating
products, gifts and workshops, emphasising the connection between people.
Everything seemed to go more smoothly after she turned to mindfulness.

She reflected on her priorities. "I am naturally sentimental; I like to
communicate with my customers and connect with them through tea. The feedback
and appreciation of from them re driving forces for me to persevere.

“This also made me realise that I have to create things that touch my heart
before they touch others. Two years ago I started using my own portrait as the
trademark, which brings warmth to the brand and creates a friendly and happy
image; it instantly establishes a connection with consumers and increases the
brand value.”

Giving the company’s Wellness series as an example, Ms Mak said: "It is
specially formulated according to the physical needs of different people, making
them happy and healthy. We used white tea or rose tea as the base, blended with
sweet-scented osmanthus, chrysanthemum, jasmine, oolong puer. We used playful
names for our drinks, such as Kiss Kiss Tea for fresh breath, Poop Poop Tea for
detoxifying and Warm Warm Tea to improve circulation.”

Simple, clean designs make the products stand out on the shelf and approachable
for buyers. The Wellness series has attracted enquiries from United States and
Korean buyers and has also been released in a tea room in Singapore.




The Wellness series has a five-elements concept that corresponds to the needs of
different parts of the body



BUSINESS AMBITION


After moving office to Chai Wan, on the east coast of Hong Kong Island, in
September 2021, MingCha embarked on a new journey, with more emphasis on the
domestic retail market.

The companyalso actively explored online and offline sales channels, including
the HKTDC Design Gallery, chain supermarkets, HKTV Mall and even distributors
such as Deliveroo. MingCha is also preparing to set up self-operated stores on
major online sales platforms to further understand user needs and consumption
habits.



Jasmine Blossom is one of MingChas most popular products


Jasmine Blossom has been a hot-selling product at MingCha, and Ms Mak plans to
launch a version of Jasmine Blossom to drink chilled – Cold Brew Ball Ball Tea,
which she said will satisfy those people who love cold drinks. The best of all
is it is free of a sugar and additives that are both healthy and
thirst-quenching will be a new direction for development at MingCha.

The company is also looking to test the Mainland China market and has signed up
to participate in the cross-border e-commerce project jointly launched by the
Hong Kong Trade Development Council (HKTDC) and mainland e-commerce giant
JD.com.

“We have no contacts or partners in the mainland, and the tax and import
declaration documents are complicated, and the competition fierce, so we have
never dared to set foot in the mainland market. But now the 'pay in Hong Kong,
receive in Hong Kong' way to expand sales has given me the courage to try.”

BACK TO TOP ^


DESIGN GALLERY BOOST



Ming Tea House has sold products on consignment in the HKTDC Design Gallery for
many years


MingCha has sold products in the HKTDC Design Gallery’s physical and online
stores for many years and she said the sales performance has been satisfactory.
The company has also promoted cooperation with the Commercial Press. “The most
important thing is to strengthen potential customers’ confidence in us, and many
of them believe that selling products in the Design Gallery is a guarantee of
quality.”

Ms Mak expects the market will return to pre-pandemic levels in 2024 and has
plans to open a brand-new and down-to-earth tea shop that will allow tea-lovers
to taste and experience products in person, and discover new possibilities for
tea through tea pairing.

“I have confidence in our products. MingChahas always cooperated directly with
high-quality tea farmers we only work with tea farmers who strive to maintain
quality tea and have done tests based on European Union standards..”

Ms Mak concluded: “There are many challenges, but I am still optimistic about
the future. With creativity I hope I can continue to innovate and take the tea
culture to a new level through creativity.”

BACK TO TOP ^


SME OUTLET

"Hong Kong Design Gallery" JD.com International is a cross-border e-commerce
store covering 14 major product categories, including food and beverages,
personal care and beauty products, small household appliances, electronic
products, household products, gifts and cultural and creative products, fashion
clothing, handbags, fashion accessories, watches, pet supplies, sports and
outdoor products, toys and baby clothing and supplies.

Small and medium-sized enterprises (SMEs) can participate in this e-commerce
venture as long as they have a Hong Kong company business registration and local
bank account certificate, as well as Hong Kong or overseas trademark
registrations and product quality inspection certificates. SMEs do not need to
register a company in the mainland, issue VAT invoices or hold mainland bank
accounts, and nor do they need to hold mainland trademark registrations and
product quality inspection certificates. After receiving orders from mainland
consumers, SMEs only need to ship from Hong Kong and receive payment in US
dollars in Hong Kong after the entire transaction process is completed. At the
same time, Hong Kong companies only need to pay a relatively small amount of
relevant taxes, which greatly reduces the number of processes and operating
costs.

Related links
MingCha
Hong Kong Design Gallery
JD.com




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