How Chinese tea-drink brand Heytea saves millions in marketing costs thanks to its millennial customers

While many traditional companies spend big on advertising to keep their brand in the spotlight, a Chinese beverage start-up known for its cheese topped tea drinks that people wait in line for hours to buy, is leveraging the power of free internet marketing in its battle against US giant Starbucks.

It does not have celebrity endorsements or paid advertising, but Heytea – a tea-brand originating from Guangdong province – has never lacked public exposure because its non-traditional tea drinks and long-queues are frequently discussed on social media platforms like Weibo and WeChat, complete with well composed photos of the drinks and shops posted by its Chinese millennial consumers.

Nie Yunchen, CEO of Shenzhen Meixixi Catering Management, which owns the Heytea brand, said the company is not using traditional channels to market its products, rather is relying on word of mouth among consumers, potentially saving millions of dollars in marketing expenses. He believes a taste for good tea drinks and internet communications are not limited by geography or demographics.  

“I am trying to make tea-drinking cool among Chinese millennials,” the 27-year-old entrepreneur said in an interview in his office in Shenzhen, which is decorated in the same simple and chic style as Heytea shops.

“I studied computer programming and even considered starting an internet company,” said Nie, who opened his first tea-drink shop in 2012 with an investment of only 150,000 yuan (US$22,000). However, Nie is trying to incorporate technology elements into Heytea’s operation. The company has developed a WeChat mini-app so customers can skip long queues by placing orders online, while the app helps Heytea monitor customer behavior so it can improve its products and services, according to Nie.