'7,000 won in Korea, 3,000 won in China?' — Chinese tea brands go premium in South Korea

Chinese tea brands including Cha Bai Dao, Heytea and Chagee have entered the South Korean market with prices set well above their home-market levels, pursuing a premium strategy that emphasizes ingredient quality, differentiated menus and in-store experience.

According to industry sources, Heytea's "Roasted Brown Sugar Bobo Milk Tea" sells for 7,500 won in Korea. The same drink costs 19 yuan (about 3,800 won) in China — meaning the Korean price is roughly 97 percent higher. Heytea currently operates five stores in Seoul, with locations in Gangnam, Myeong-dong, Hongdae, Garosugil and Konkuk University.

Heytea's "Crisp Grape Boom," another signature item, is priced at 6,900 won in Korea, compared with 18 yuan (about 3,600 won) in China — a gap of roughly 3,000 won. The "Coconut Mango Boom" retails for 6,400 won here, more than double its Chinese price of 15 yuan (about 3,000 won).

Cha Bai Dao also prices its drinks significantly higher than in China. Its signature "Mango Pomelo Sago" costs 6,900 won for a large in Korea, versus 21 yuan (about 4,200 won) at home — about 64 percent more. The "Taro Ball Milk Tea" runs 5,600 won here, roughly 75 percent above its Chinese price of 16 yuan (about 3,200 won).

Chagee, which entered Korea in April, has also set its Korean prices about 1,000 to 2,000 won above Chinese levels. Regular-size drinks range from 4,900 to 6,600 won. Its flagship "BO·YA Jasmine Milk Tea" costs 6,000 won for a large, compared with about 20 yuan (4,000 won) in China.

Rather than competing on price, the Chinese tea brands are positioning themselves in Korea as a premium alternative to conventional bubble tea. Chagee highlights the fact that it brews high-quality tea leaves fresh in-store every day, centering its menu on milk teas that blend jasmine and oolong whole-leaf teas with milk to emphasize the natural flavor and quality of the tea itself.

Chagee has also invested heavily in its store environments. Its Gangnam flagship is designed around an oval "tea bar" at the center of the floor, giving customers a direct view of the drink-making process. The Seoul National University Station branch, which opened Wednesday, was styled as "The Book Teahouse" — a concept reflecting the neighborhood's university character, where customers can enjoy books alongside their drinks.

Kim Jeong-hee, chief marketing officer of Chagee Korea, said at a press briefing held when the brand launched in Korea that "pricing policies can differ depending on each country's operating structure and cost differences," adding that the goal in Korea is "to let customers enjoy a premium tea experience at a reasonable price point."

Heytea and Cha Bai Dao are similarly differentiating themselves from low-cost bubble tea chains by using fresh fruit, fresh milk and cheese foam. Rather than undercutting on price, all three brands have opted for a price tier that puts them in direct competition with established cafes and tea brands.

The higher price points appear to be translating into strong sales. According to the Korea Fair Trade Commission's franchise information system, the 15 Cha Bai Dao franchise stores operating last year posted average annual sales of 597.59 million won ($440,000) — well ahead of Mega MGC Coffee (412.87 million won), Mammoth Express (232.26 million won) and The Venti (221.81 million won). Industry sources said one Seoul store topped the Cha Bai Dao network in April, recording monthly sales of 215 million won.

Store counts are also expanding. As of Sept. 24, Cha Bai Dao had grown its Korean network to 47 locations, with a target of 50 by year-end. The brand is accelerating its rollout through a dedicated franchise recruitment website.

Chagee is expanding just as quickly. After simultaneously opening three stores in Gangnam, Yongsan and Sinchon when it entered Korea in April, the brand added outlets in Yeoksam, City Hall, Konkuk University and Jamsil. When it opened its Seoul National University Station store on Wednesday, it reached 10 Korean locations — roughly five months after its market entry.