Mixue vs. Tealive: A Battle for Supremacy in Malaysia’s Beverage Market
Malaysia’s food and beverage (F&B) industry is a dynamic and competitive space, with numerous brands vying for the attention and loyalty of consumers. Among the many players in this arena, two brands stand out for their rapid growth and widespread popularity: Mixue and Tealive. Both brands have carved out significant market shares in the beverage sector, particularly bubble tea Malaysia categories. At Brand360, we’re fans of both ice cream and tea, so we took it upon ourselves to taste test, explore their similarities, differences, and how they stack up against each other in Malaysia’s crowded F&B landscape.
Brand Backgrounds: Origins and Growth
Mixue is a Chinese brand that was founded in 1997 in Zhengzhou, China. Initially focusing on affordable ice cream, Mixue quickly expanded its product offerings to include a variety of beverages, particularly tea-based drinks. The brand’s success in China paved the way for its international expansion, with Malaysia being one of its key markets in Southeast Asia. Mixue’s value proposition lies in offering high-quality products at affordable prices, which resonates strongly with Malaysian consumers. You can read more about Mixue in this article.
Tealive, on the other hand, is a homegrown Malaysian brand founded by Bryan Loo in 2017. It emerged from the rebranding of the former Chatime Malaysia, following a high-profile dispute with the Taiwanese parent company. Tealive has since grown rapidly, becoming one of Malaysia’s most popular bubble tea chains. Known for its wide range of tea-based drinks and innovative flavours, Tealive has built a loyal customer base and a strong brand presence across the country. Tealive and Chatime competed for Malaysian market so hard that they ended up sparking other bubble tea brands in Malaysia.
Product Offerings: Variety and Innovation
Both Mixue and Tealive offer a diverse range of products, but their primary focus differs slightly.
Mixue is known for its signature snow ice, a type of soft-serve ice cream, alongside a variety of fruit teas, milk teas, and bubble tea specialty beverages. The brand frequently introduces new flavours and limited-time offerings, keeping its menu fresh and exciting for customers. Mixue’s product range is designed to appeal to a broad audience, from students to young professionals, with an emphasis on affordability.
Tealive, meanwhile, is predominantly focused on tea-based beverages, particularly bubble tea. The brand offers an extensive menu that includes classic milk teas, fruit teas, smoothies, and specialty drinks like the Bang Bang series, which features creamy and indulgent flavours. Tealive is known for its innovation, regularly launching new products and flavours that cater to local tastes and preferences. Additionally, Tealive has expanded into snacks and merchandise, offering more variety for customers.
Pricing Strategies: Affordability vs. Value
Pricing is a key differentiator between Mixue and Tealive. Mixue has built its brand around the concept of affordability. The company’s products are priced competitively, making them accessible to a wide range of consumers. This pricing strategy has been particularly effective in attracting price-sensitive customers, such as students and young adults, who seek high-quality treats without breaking the bank.
Tealive, while still affordable, generally positions itself slightly higher in the market compared to Mixue. The brand emphasises value for money, with a focus on quality ingredients and innovative flavours that justify a slightly higher price point. Tealive’s pricing strategy appeals to consumers who are willing to pay a bit more for a premium experience, including those who prioritise the brand’s Malaysian identity and local flavour innovations.
Marketing and Branding: Engaging the Audience
Both brands have employed savvy marketing strategies to build strong connections with their target audiences.
Mixue leverages social media platforms like Instagram and TikTok to engage with younger consumers. The brand’s marketing is heavily visual, focusing on the aesthetic appeal of its products and the affordability angle. Mixue’s campaigns often feature user-generated content, collaborations with local influencers, and viral challenges that resonate with its target demographic.
Tealive also has a strong presence on social media but takes a more diverse approach to its marketing. The brand’s campaigns often highlight its Malaysian roots, promoting a sense of national pride. Tealive engages customers through loyalty programs, limited-edition merchandise, and partnerships with popular local and international brands. The company’s marketing efforts are designed to create a community around the Tealive brand, fostering loyalty and repeat business.
Store Presence and Expansion
In terms of physical presence, both Mixue and Tealive have been aggressive in their expansion strategies within the bubble tea Malaysia market, but there are some differences in their approaches.
Mixue has rapidly expanded across Malaysia, focusing on high-traffic areas such as shopping malls, university campuses, and busy commercial districts. The brand’s expansion strategy is centred around accessibility, ensuring its outlets are conveniently located for a broad range of consumers. Mixue’s quick growth has been a key factor in its rising popularity, as it seeks to establish a strong foothold in the market.
Tealive, with its longer presence in Malaysia, boasts a more extensive network of outlets across the country. The brand’s stores are strategically located in urban centres, suburban areas, and even in more remote regions, making it one of the most accessible bubble tea brands in the country. Tealive’s comprehensive expansion strategy has allowed it to maintain a dominant position in the market.
Customer Experience: Loyalty and Engagement
Mixue emphasises a no-frills, straightforward approach to customer service. The brand excels in delivering quality products quickly and efficiently, catering to customers who are looking for a quick and affordable treat. While Mixue does not have a formal loyalty program, its pricing and frequent promotions help maintain customer engagement.
Tealive, in contrast, has invested heavily in creating a holistic customer experience. The brand’s outlets are designed to be welcoming and comfortable, encouraging customers to linger and enjoy their drinks. Tealive also offers a loyalty program which rewards frequent customers with discounts and special offers. This program, along with Tealive’s emphasis on community and brand identity, has helped foster a strong sense of loyalty among its customer base.
Competition and Market Challenges
Despite their successes, both Mixue and Tealive face significant challenges in the competitive Malaysian F&B market. Mixue must contend with maintaining its product quality and consistency as it continues to expand rapidly. The brand’s reliance on affordability as its key differentiator also puts pressure on profit margins, especially as operational costs rise. Additionally, Mixue faces stiff competition from both local and international brands, requiring it to continuously innovate to stay ahead. One of their competitors is a fellow countryman in Chagee.
Tealive faces challenges related to market saturation, as the bubble tea craze shows signs of stabilising. The brand must continue to innovate and adapt to changing consumer preferences to maintain its market leadership. Additionally, Tealive’s slightly higher price point compared to Mixue could make it vulnerable to price-sensitive consumers, particularly in economically challenging times.
The Future of Mixue and Tealive in Bubble Tea Malaysia
The future looks promising for both Mixue and Tealive, but success will require careful navigation of the challenges posed by the competitive landscape of bubble tea Malaysia.
Mixue is likely to continue its aggressive expansion strategy, focusing on increasing its market presence and appealing to a broad audience. The brand’s emphasis on affordability and product variety will be key to its ongoing success. However, Mixue will need to ensure that it can maintain product quality and customer satisfaction as it grows.
Tealive will need to leverage its strong brand identity and customer loyalty to stay ahead of the competition. The brand’s focus on innovation, community engagement, and premium offerings will be crucial in differentiating it from Mixue and other competitors. Tealive may also explore further diversification of its product line and expansion into new markets to sustain its growth.
Final Thoughts
The competition between Mixue and Tealive is a testament to the dynamic nature of Malaysia’s F&B industry. Both brands have successfully tapped into the growing demand for affordable, high-quality beverages, each carving out its niche in the market. As they continue to expand and evolve, Mixue and Tealive will undoubtedly remain key players in the Malaysian beverage scene, each offering something unique to their loyal customers. The battle for supremacy between these two brands will likely shape the future of the industry, driving further innovation and setting new standards for excellence in the process.
Have a brand you aspire to be? Let’s have a chat over boba or ice cream. Either way, we’re cool with both.