Tealive aims to open 10 corporate stores in China to test the market and prove its franchise model works before collaborating with local Chinese entrepreneurs.
This comes after owner of Tealive, Loob Holding, established a joint venture with Zhejiang Boduo International Trade and Shanghai Panfei International Trade last year, to open 500 Tealive stores in China within three years. Its first store opened in Shanghai and China marked the fourth overseas market the company has expanded into, with the other three being India, Australia and Vietnam. A+M has reached out to Loob Holding for comment.
According to Bernama, CEO Bryan Loo (pictured) said investments in China are “high” and it would like to keep it as an “asset-light mode” where by franchising most of its stores. Additionally, Loo said more food products such as the Seremban Lucky King buns will be brought in to support its expansion within China.
While the journey to becoming a “global brand” is not easy, Loo previously said he is “extremely confident” that his team has what it takes to take the company further.
In a previous interview with A+M, Loo said the company aims to expand into six more countries this year and have 1,000 stores in the region by 2020 mainly through its direct and franchise model. For Loob Holding, disrupting the market is key to maintaining its position in Malaysia while expanding into other markets, due to the “intense competition” it faces daily. Ultimately, the company aims to build a unique brand positioning and create an emotional attachment to the brand.