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LaKaffa Revenues Hit All-Time High: Successful Overseas Expansion
Good news on the fifth day of the Chinese Lunar New Year, which is the date of resuming operation! Revenue of LaKaffa for January 2019 grew by 34.64 percent compared to January 2018 and hit an all-time high simultaneously.
LaKaffa reported that its consolidated sales of January 2019 was NT$ 389 million dollars. It was not affected by seasonal factors and reached an all-time high in a low season. Compared with last January, the revenue this January grew by 34.64 percent due to overeas expansion of Chatime and its steady increasing royalty income and materials sales.
The 389-million-dollar consolidated sales of January 2019 was owing to market strategy of Chatime. Royalty income and materials sales are important contributions to its consolidated sales; thus the growth reached 30 percent. LaKaffa indicated that the main strategy of overseas expansion of Chatime would be keeping working hard on ASEAN and Austrlia markets and expanding operations in Europe and Central and South America next. Chatime has already run 100 bubble tea shops and has also become the best bubble tea brand in Australia in 2018. As to ASEAN coutries, Chatime expects to expand operations to 300 bubble tea shops. It is highly possible to reach the goal of running 100 bubble tea shops in the Philippines before the 3rd quarter this year.
Speaking of Hangzhou Ruili, Chatime has started more and more bubble tea shops in Hangzhou and the target this year is to increase the number by double digits. According to monitoring and analysis of Ministry of Commerce of China, retail sales of catering and food set a record of 1 trillion yuan in sales this Chinese Lunar Year, which grew by 8.5 percent. Apparently, domestic demand for food of China is still expanding. Chatime expects to lead Heilongtang and GOMAX to expand operations.
Thinking of the big picture, bubble tea has beome inelastic demand. Moreover, the industry is not affected by the onging China–United States trade war and Chinese tea has been popularized in Western countries these years; in this case, the bubble tea industry is able to keep growing. LaKaffa, which is specialized in international operations management, built an International Business Development and an International Business Management team under International Sales Department, in order to maintain the quality of its overseas product. The department is responsible for developing the brand, tapping international markets actively, and quality management. Therefore, LaKaffa is in the lead by 6 years in the world; consequently, the revenue of LaKaffa reacheed a new record high.