Elephant Tea: Internationalization?
- Yilan Lan
- 27 nov. 2021
- 2 min de lecture
Dernière mise à jour : 16 déc. 2021
After having been bought by large industrial groups, Elephant Tea never ceased to expand over time and to develop its technical capacity for the processing and packaging of teas and aromatic plants.
According to secondary study, they enter the market of other countries basically by exporting, I have seen elephant tea on Alibaba platform in China and on a French product website in the United States.
But in this article, I want to explore one question, as a cheap mass consumer goods, why elephant tea goes international?
Some companies go international in order to buy cheaper and better quality raw materials and to get a lower labor costs. For Elephant Tea, their teas and aromatic plants come directly from suppliers who source from the best producers worldwide. As for the green tea supply, they work to sign an exclusivity agreement with producers whose harvest comes from century-old trees in Vietnam, more specifically from the Suoi Giang region in the Yen Bay Provence. The Southeast Asian market itself is very fond of tea culture, and this emerging market with cheap labor and abundant resources will become a major driver of economic development.
Some companies go international in order to sell more and develop a larger market. In France, there are many offers and tea can be found in all distribution channels. In supermarkets or in all local shops on the one hand, but also in specialized stores, on the Internet, in cafés and restaurants as well as in the hotel business. The offer is therefore very vast with leaders in production, which bear the names of Unilever (Elephant, Lipton) or private labels (MDD), which represent more than 30% of market share in France. The market share of Elephant Tea in France is still relatively high, but the tea market in France is already saturated and it is difficult to explore new areas, moreover, in recent years some international brands, including those made in China, are hitting the French local market. So the development of international markets is also to escape the fierce competition at home.
LAN Yilan
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