Xiangpiaopiao Milk Tea Sparks Outrage with 16 Yuan Price Tag

This price increase is part of a larger strategy by Xiangpiaopiao to revitalize its sales and brand image. The company, once a beloved childhood drink for many, has been under pressure to improve its sales in recent years. Despite efforts to revamp its marketing strategy, including collaborations with popular variety shows, opening offline stores, and signing brand ambassadors, the company's revenue has been declining since 2019. In 2024, the company's revenue dropped to 19.38 billion yuan, a decrease of 2.05% from the previous year, with a net loss of 575.49 million yuan. However, the company attributes the significant growth in its net profit to improved profit margins and reduced operating expenses.

The new product, featuring high-quality Longjing tea, will be available for purchase starting March 28, with a box of six cups priced at 98 yuan. This represents a price hike of nearly five times compared to the company's previous products. The official customer service confirmed that each cup contains at least 2.9 grams of high-quality Longjing tea, leading some netizens to estimate that the tea leaves alone may cost around 12 yuan per cup based on market prices. Some have even questioned the wisdom of using such high-end tea leaves in milk tea, considering it a waste.

As news of the price hike spread, netizens took to social media to express their varied reactions. Some users felt that using high-grade Longjing tea in milk tea was a waste, while others believed the new price point was acceptable. A number of users expressed discontent with the sudden price increase, stating that they were not comfortable with the jump from the previous price of 5 yuan to 16 yuan per cup. Others questioned the value proposition of the premium tea, with some arguing that the quality did not justify the significant price increase. Meanwhile, some fans of the brand came to its defense, citing the high quality of the ingredients and the unique flavor profile of the Longjing tea-infused milk tea.

The controversy surrounding the pricing of Xiang Piao Piao serves as a reflection of the diverse and evolving preferences within the consumer market, where perceptions of value and willingness to pay can vary widely. As the market continues to grow and diversify, it will be interesting to observe how consumer attitudes towards luxury products like Xiang Piao Piao evolve, and whether the brand can sustain its market presence at such a high price point. Ultimately, the decision to try this premium beverage ultimately rests with individual consumers, who will weigh the cost, value for money, and personal consumption preferences in making their decision.