Can China’s budget brands crack developed markets? Mixue shows it won’t be easy
Slow expansion in Japan and store closures in Hong Kong suggest low prices may not be enough to win over consumers in mature economies
“It’s not a very popular brand here. Only one of my friends in Japan has ever bought it,” Lin said, adding that value for money was the main consideration behind her own consumer choices in Tokyo. While Mixue’s basic teas are cheap, a plain bubble tea still costs about 400 yen (US$2.46) in Japan – comparable to peers offering more inventive flavours like mango.
“I would definitely choose the latter over Mixue, given there’s no big difference in price,” she said.
But that playbook is now being tested in more mature markets. Three years after entering Japan, Mixue still operated only four stores in the country, far short of its initial target of 1,000 outlets by 2028, Japanese media outlet Nikkei reported in late June.
The company also made a high-profile entry into Hong Kong in late 2023, opening nine stores in its first year. But it closed a third of its outlets within the first six months of 2026, with its store in Tsim Sha Tsui the latest to close, according to local media last month.
Analysts said these setbacks had highlighted the need for Chinese brands going global to move beyond competing on price alone, recognising that such a strategy was far from a one-size-fits-all formula.