Chinese tea chain Chagee opens first Hong Kong outlet

Chagee’s branding celebrates traditional Chinese art, opera and poetry | Photo credit: Declan Sun

Chinese tea chain Chagee has launched in Hong Kong with an outlet at the K11 Art Mall in Tsim Sha Tsui. 
 

Founded in Yunnan in 2017, Shanghai-based Chagee has rapidly expanded across East Asia and now operates more than 5,000 stores across the region. The majority of its international outlets are in Malaysia, where it made its first foray abroad in 2019. 

Chagee said Hong Kong’s position as a global financial and business hub will help the chain promote traditional Chinese tea culture to international audiences and raise brand awareness as it gears up for further expansion. 

“We hope to promote and spread traditional Chinese tea culture to the world and raise brand awareness globally by establishing our presence in Hong Kong. As an international financial centre and business hub, Hong Kong has a diverse and international market with consumers from around the world. It helps us test and adapt our products to different cultural backgrounds and consumption habits, providing a solid foundation for our brand to expand globally,” said Rex Ho, Chagee’s Operation Director for Hong Kong and Macau. 

Hong Kongese government agency InvestHK also highlighted how that presecne in the special administrative region of China could boost Chagee’s “international brand image”.  

The organisation, established in 2000 to attract and support foreign direct investment in Hong Kong, said in a press release that Chagee will leverage the city’s role as one of East Asia’s major business hubs to enhance brand awareness. 

“The city has been a springboard for mainland enterprises to go global. Together with its strategic location and international business environment, it makes an ideal place for Chagee to expand globally,” said Jimmy Chiang, Associate Director-General of Investment Promotion, InvestHK. 

Chagee is currently the fourth largest tea chain in China behind Mixue, Guming and ChaPanda – which have approximately 36,000, 9,000 and 8,000 stores respectively. 

In May 2024, Chagee Founder and CEO Junjie Zhang set an ambitious long-term goal of operating in 100 countries and said he expects the brand’s 2024 sales to surpass those of Starbucks China.  

Chagee’s total 2023 sales reached RMB 10.8bn ($1.5bn), while Starbucks’ full-year revenues in China in the 12 months to 1 October 2023 reached RMB 21bn ($3.05bn). 

With a menu primarily comprising premium milk and fruit-based tea beverages, Chagee’s branding celebrates traditional Chinese culture with its store decor paying tribute to Chinese opera, its take-away cup packaging featuring Chinese art and several beverages named after Chinese poems.