Heytea Accelerates Global Expansion: With 100+ Stores Worldw

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In just one year, HEYTEA has expanded its overseas store count by over sixfold, growing from 2 to more than 30 stores in the US, carving out a new tea beverage battleground in Starbucks' backyard through its unique brand momentum and supply chain capabilities.

On August 1, local time, HEYTEA officially opened its store on Main Street in Cupertino, California, USA. This location, home to Apple's headquarters, is the heart of Silicon Valley.

HEYTEA has become the first new tea beverage brand to establish a presence in Apple's headquarters city.

Inspired by the concept of "Woodland Tea Aroma, Natural Harmony," this new store integrates tea culture, modern social settings, and a technological context. It also launched a全新限定饮品 new limited-time beverage: the 'iYerba' Mate Tea Smoothie.

01 Global Layout: The 100-Store Milestone and Market Selection

As of early August 2025, HEYTEA's total number of overseas stores has exceeded 100, reaching 124. Over the past year, its overseas store count has grown more than sixfold, marking an entry into a phase of rapid development.

HEYTEA has now entered 8 overseas countries – the United States, United Kingdom, Canada, Australia, Malaysia, Singapore, South Korea, and Japan – as well as the Chinese regions of Hong Kong and Macao, covering 28 overseas cities.

Expansion in the US market has been particularly rapid, with the store count surging from 2 to over 30, making HEYTEA the fastest-growing and largest new tea beverage brand in the United States.

02 Location Strategy: Focus on Landmark Business Districts

HEYTEA's overseas strategy concentrates on global core cities and landmark business districts.

Its locations include cities like London, Manchester, and Birmingham in the UK; New York, Los Angeles, San Francisco, and Washington in the US; Toronto and Vancouver in Canada; and Sydney, Melbourne, and Brisbane in Australia.

Within the US, HEYTEA focuses on high-potential coastal areas, securing prime spots in locations like Hollywood, Cupertino (Apple's HQ), and the South Coast Plaza in Los Angeles.

03 Products & Marketing: Localized Innovation and Cross-Brand Collaborations

HEYTEA implements a combined strategy of "Classic Offerings + Localized Specials" in overseas markets.

Its classic product "Coconut Mango" has sold nearly 2.5 million cups overseas, with the US market contributing over 1 million cups. Global cumulative sales for "Grape Cheezo" and "Mango Pomelo Sago" have also surpassed one million cups each.

Since 2025, HEYTEA has accelerated the simultaneous launch of popular new products from China into overseas markets. Over 10 products, including "Kale Body Reset Bottle," "Refreshing Guava Grape," "Milky Jasmine," and "Triple Rich Matcha," have landed overseas.

HEYTEA has also introduced more than 20 beverages created exclusively for overseas markets. For example, "Cloudy Blue Coconut Matcha," featuring superfoods like blue spirulina, coconut water, and matcha, sold out upon launch in countries like the US, UK, and Canada, becoming the first breakout hit phenomenon among new tea brands expanding abroad.

HEYTEA continuously engages in cross-over collaborations with globally renowned artists and trendy brands, such as alexanderwang, Sandy Liang, Tears of Themis, and Yayoi Kusama, strengthening the brand's cross-cultural appeal.

04 Supply Chain & Operations: Systematic Development and Localized Sourcing

HEYTEA is the first and currently the only new tea beverage brand to build a systematic supply chain overseas.

It has established multiple storage centers on the US East and West Coasts, in the UK, Malaysia, and in Sydney and Melbourne, Australia, providing efficient warehousing and logistics services for local stores.

In the US, HEYTEA has formed deep partnerships with leading suppliers like Sysco, achieving localized sourcing for 13 core categories including milk and fruits. The North American supply chain team addressed pain points like dairy product stability and fruit freshness by establishing a "Regional Central Warehouse + Forward Warehouse" model.

HEYTEA has set up a specialized local team in the US covering key functions like brand marketing, product R&D, operations management, supply chain management, and quality control to ensure consistent store operation standards and customer experience.

Regarding digitalization, in January 2025, HEYTEA launched its self-operated delivery service in the US, integrating "Dine-in, Takeaway, and Delivery" into a full-scenario model, making it the only new tea beverage brand in the US with its own delivery system.

05 Investment & Challenges: Upfront Costs and Operational Pressure

The initial investment to open a HEYTEA store in European and American markets ranges between $400,000 and $800,000, rising to as high as $1.2 million in some areas due to increased labor costs.

These costs cover the franchise fee, initial service fee, security deposit, fit-out budget, royalty fees, service fees, equipment, materials, rent, etc. Monthly rent averages around $20,000, each store requires a staff of about 6 people, and the average monthly labor cost per person is about $4,000.

The store opening approval process in the US is lengthy, taking 9-12 months. Site selection alone can take 3 months, drawing approval normally requires 3-5 months, and construction takes another 3-5 months.

Food-related businesses face high certification costs, with import certification alone potentially costing hundreds of thousands of dollars.

06 Market Performance: Queuing Frenzies and Sales Figures

HEYTEA's overseas stores, particularly in Europe and America, have achieved remarkable sales performance.

The HEYTEA LAB store in Times Square, New York, which opened earlier this year, sold over 3,500 cups on its first day and maintains a stable daily average of over 2,000 cups. The Flushing Main St store, opened in 2024, sold nearly 3,300 cups on its third day post-opening. The San Jose Hostetter location maintains daily sales exceeding its initial opening levels, even during the off-season.

Videos of "queuing for 2 hours to buy a drink" have spread widely on overseas social media, with some US consumers even stating they "never thought a Chinese tea drink could be more addictive than coffee."

The success behind HEYTEA, which sold 3,500 cups on its first day at the Times Square LAB store and maintains a daily average of over 2,000 cups, stems from establishing warehouses on both US coasts, partnering with suppliers like Sysco for localized sourcing of 13 core categories, and developing over 20 region-specific beverages for the North American market.

HEYTEA's overseas journey demonstrates that Chinese brands can export not just supply chains, but also brand value and cultural identity.

I. Overall Overview and Development Trends

Over the past decade, the "Go-Global" strategy of Chinese enterprises has undergone a crucial transformation from scale expansion to quality improvement. China's outward foreign direct investment (ODI) flow has ranked among the top globally for many consecutive years. By the end of 2024, the stock of ODI had exceeded US$2.8 trillion, with investments spread across over 190 countries and regions worldwide, establishing more than 40,000 enterprises.

From an industry evolution perspective, the structure of outbound investment has seen significant upgrading. The main drivers have shifted from energy and infrastructure a decade ago towards technology and brand-driven sectors. Manufacturing of computers, communication and other electronic equipment, electrical machinery and apparatus, internet and related services, and automobile manufacturing have become the new pillars of outbound investment. Green transition has emerged as a key trend. Concurrently, the global expansion of the digital economy has been remarkable, with cross-border e-commerce, mobile payments, and social media applications rapidly penetrating emerging markets globally, forming a two-way cycle of technology export and market expansion.

II. Classification of Outward Investment Methods

1.Mergers & Acquisitions (M&A)

• Aimed at acquiring technology, brands, or channels. Examples:       Haier's acquisition of GE Appliances; Zhejiang Yotrio's acquisition of       the German brand MWH; Midea's acquisition of KUKA Robotics to expand into       industrial automation.

2.Greenfield Investment

• Establishing new factories, R&D centers, or stores.       Examples: CATL's plant in Germany; BYD building new energy vehicle       production bases in Thailand and Hungary; Fuyao Glass building plants in       the US and Russia to support local automotive industries; Xiaomi's       overseas home plan.
• Regional Hub Construction: SHEIN       building warehouse centers in the Czech Republic and Germany to shorten       European delivery cycles; Temu establishing local US warehouses;       Meituan's Keeta plan to build regional storage and distribution hubs in       Brazil.

3.Strategic Cooperation & Joint Ventures (JV & Alliance)

• Partnering with local enterprises to share risks and integrate       resources. Example: SAIC's joint venture with Thailand's Charoen Pokphand       Group to establish MG Thailand.

4.Financial Investment

• Conducting financial investments or strategic placements       through shareholding or industry funds. Examples: Tencent's investments       in overseas gaming companies; policy banks like China Development Bank       supporting Belt and Road Initiative projects via special loans.

5.Light-Asset & Digital Expansion

a) Cross-border E-commerce: Platforms like AliExpress and Temu enter overseas markets with a platform model, initially requiring minimal fixed asset investment.

b) Brand Licensing: Xiaomi authorizes overseas manufacturers to produce goods through its ecosystem chain model, rapidly covering emerging markets.

c) Franchising: Mixue Bingcheng uses franchising in Southeast Asia, attracting local franchisees with preferential policies for rapid store expansion; CHAGEE combines regional agents with direct operations, deploying flagship stores in core business districts.

d) Technology Export: Meituan's Keeta exports its intelligent dispatch systems to Saudi Arabia and Brazil; Ant Group exports payment technology solutions to partners via the Alipay+ ecosystem.

e) Digital Operations: HEYTEA overseas stores utilize mini-program ordering systems, with online orders exceeding 60% of total, using data to optimize product mix and inventory management.

III. Major Destination Countries/Regions for Outbound Investment

According to data from China's Ministry of Commerce and host countries, Chinese ODI has primarily flowed to the following countries and regions in recent years (listed in no strict order, all key areas):

1. Southeast Asia: Singapore      (regional HQ hub), Indonesia (nickel, new energy, infrastructure),      Thailand (automotive, electronics manufacturing), Vietnam (consumer      electronics, manufacturing).
2. Americas: United States      (end-consumer market, tech investment), Brazil (agriculture, energy,      electric vehicles, digital services).
3. Europe: Hungary (gateway for      new energy, EV supply chain), Germany (high-end manufacturing, auto      parts), UK (finance, technology).
4. Middle East: Saudi Arabia      (energy transition, digital economy, infrastructure), UAE (trade hub,      digital economy).
5. Other Key Markets: Russia      (automotive, energy), Australia (mining, new energy), Mexico (nearshoring,      manufacturing), Africa (infrastructure, resources, mobile communications).

IV. Analysis of Failed Cases and Lessons Learned

1. CNPC Niger Project (Geopolitical Risk): Suffered major setbacks in 2025 due to political      changes. Lesson: Investments in politically unstable      regions require rigorous risk assessment and hedging mechanisms.
2. LONGi Green Energy Romania Project (Trade Barriers &      Compliance): Withdrew from a PV project      under EU investigation per the Foreign Subsidies Regulation. Lesson: Increased      policy uncertainty and rising compliance costs in developed markets.
3. Xiaomi India Tax Dispute (Compliance & Localization): Faced local tax scrutiny. Lesson: Extreme      emphasis on local financial, tax, and legal compliance is needed,      alongside strengthening local teams.
4. JD.com Indonesia Logistics      (Model Inadaptability): The heavy-asset,      self-built logistics model proved too costly in markets with      underdeveloped infrastructure, leading to eventual exit. Lesson: Business      models must align with local market development stages; avoid simply      replicating domestic models.

V. Trend Summary and Strategic Suggestions for Going Global

1. Outbound Trends

• Regional Diversification: Expanding      from Europe/US and Southeast Asia to emerging markets like the Middle      East, Latin America (e.g., Brazil, Mexico), and CIS countries.

• Technology-Driven & Branding: Shifting      from cost-performance exports to exports of technology, brands, and      standards (e.g., NEVs, PV, digital platforms).

• Deepening Localization: Evolving      from sales localization to full-chain localization encompassing      production, R&D, talent, and supply chain.

• Sector Broadening: Expanding      from manufacturing to the digital economy, green technology, professional      services, and cultural consumption.

• Normalization of Risk: Geopolitics,      trade barriers, and compliance requirements becoming persistent      challenges.

2. Suggestions for Global Layout
Suitable Enterprise Types for Going Global:

• Technology-Advantaged: Firms      with global competitiveness in areas like new energy (CATL), 5G (Huawei),      AI (SenseTime).

• Brand-Premium: Consumer brands      with mature brands and channel capabilities, e.g., Haier Smart Home,      HEYTEA.

• Model-Innovators: Innovative      models proven successful domestically, e.g., cross-border e-commerce      (SHEIN, Temu), mobile payment (Ant Group).

• Culture-Adaptable: Consumer      brands combining product and cultural export, like new-style tea beverages      (CHAGEE, HEYTEA), opening markets via "Eastern elements + localized      adaptation".

• Industrial Chain Complementary: Supporting      firms that fill gaps in overseas industrial chains, e.g., auto parts      (Fuyao Glass), PV inverter manufacturers (Sungrow).

3. Key Considerations:

• Market Fit: Thoroughly      research local consumption habits (e.g., preference for low-price tea      drinks in SE Asia), policies/regulations (e.g., EU environmental      standards), and cultural differences (e.g., religious taboos in Middle      East); avoid one-size-fits-all strategies.

• Risk Assessment: Establish a      comprehensive risk assessment system covering politics (geopolitical      conflict), economics (exchange rate fluctuations), law (compliance      regulation), and society (union power). Prioritize compliance (tax, legal,      data security, labor).

• Resource Integration Capability: Assess      internal reserves in technology (e.g., patents), capital (e.g., overseas      financing ability), talent (e.g., localized teams) to determine      appropriate investment scale and pace.

• Partner Selection: Prioritize      strategic cooperation with capable, reputable local enterprises to lower      market entry barriers and policy risks.

4. Major Challenges & Countermeasures:

• Policy/Compliance Challenges: Establish      localized compliance teams, hire local professional firms for legal      support, join local chambers of commerce; learn from Huawei's experience      in defending rights via legal proceedings in Europe/US – "using rules      against rules".

• Cultural Divide Challenges: Enhance      recruitment and training of local talent (e.g., HEYTEA overseas team      localization rate >70%); integrate local cultural elements into product      design and marketing (e.g., Alipay's "red envelope + local      customs" campaigns in SE Asia during Spring Festival); achieve      cultural resonance with the target market.

• Supply Chain Resilience Challenges: Build      regionalized supply chain networks (e.g., SHEIN's separate warehouse      centers in Europe and North America), avoid over-reliance on single      markets; cooperate with local suppliers (e.g., BYD sourcing some      components in Thailand) to shorten supply chain radius.

• Brand Perception Challenges: Shift      from price competition to value competition (e.g., HEYTEA abandoning      low-price strategy, focusing on premium tea); strengthen brand building      (e.g., enhancing brand image via sports sponsorships, art collaborations)      and R&D investment (e.g., Huawei investing 15% of annual revenue into      R&D); utilize digital marketing tools (e.g., TikTok ads) for precise      target audience reach and brand loyalty building. Invest long-term in      brand building, transitioning from "Made in China" to "Brand      China".

• Expansion Pace Control: Establish      store density monitoring and dynamic adjustment mechanisms to balance      speed with single-store profitability; strengthen franchisee management      and training systems (e.g., standardized operation manuals); reference      HEYTEA's strategy of "closing low-efficiency stores, improving      existing store performance" for high-quality expansion.

VI. Conclusion

Over the past decade, Chinese enterprises expanding globally have achieved a leap from quantitative change to qualitative improvement. Facing a more complex global environment in the future, success will belong to those enterprises capable of precise strategic layout, deep localization, effective risk management, and adherence to long-termism. The global journey of Chinese enterprises – from "Going Out" to "Fitting In" and then "Moving Up" – is entering a new stage.