Recently, the sudden closure of Nayuki's Tea's first store in Hong Kong has attracted widespread attention in the industry. Located on the Peak Road of Victoria Peak, the store had been seen as an important step in the brand's internationalization since its opening in November 2019. However, it closed before its fifth anniversary, and the reason for the closure remains unknown.
Looking at the operation report recently released by Nayuki, the brand seems to be facing strategic adjustments. The report indicates that Nayuki plans to reduce the opening of new directly operated stores in 2024 and close some underperforming stores. This may suggest that the closure of the Hong Kong flagship store is part of the brand's optimization of market layout.
Nayuki's Tea's product positioning, pricing strategy, and service experience seem not to have fully adapted to the Hong Kong market. Compared with the new store in K11 Art Mall, the location and operation model of the flagship store are not convenient enough. In addition, Hong Kong consumers have mixed reviews of Nayuki, and the prices have increased significantly compared to the mainland.
At the same time, the competition in the local catering industry in Hong Kong is extremely fierce, and the coffee culture has already taken root. If new tea beverage brands want to take root in this land, they undoubtedly need more effort and innovation. According to statistics, since 2023, several mainland tea and beverage brands have entered the Hong Kong market, but some brands have also quietly exited due to failure to adapt.
The challenges faced by Nayuki's Tea in Hong Kong also provide valuable experience for other mainland brands. How to maintain brand characteristics while deeply understanding and adapting to the local market is a subject that all mainland brands must face on the road to internationalization.