At home, fierce competition among thousands of producers and brands translates into puny market shares and slim profits. Chinese teas are traditionally sold by type and place of origin, rather than by brand, and every region has its own local favourite.
Leading brands like Lipton, on the other hand, understand that creating mass value depends on nationwide marketing and an efficient, integrated distribution network. Lipton sources cheap tea from independent producers, packages it into teabags, and markets its distinctly average “Yellow Label” brew at an outrageous mark-up.
It’s not great tea, but it is great business.
In China’s highly fragmented retail market, no national brand has emerged to knock Lipton off its perch. Instead, premium players selling organic teas are attempting to carve