Hello, OptiMIST People!
Back at it again with KaMIST! Your weekly dose of insights into the latest marketing trends. In this week’s KaMIST we’ll dive into the rapid rise of Mixue.
Whether it’s on Instagram,TikTok or just around every corner in the city, you’ve obviously seen the bright red store of “Mixue”. But how exactly did Mixue become such a big brand?
Mixue itself is a brand from China which has recently been busy being discussed by many people because they are successful and managed to open outlets everywhere. Mixue mainly sells beverages and ice cream that is adored by the youth of Indonesia. Mixue was first introduced in China back in 2017. Then in 2020, it entered the Indonesian market by opening their first outlet in Bandung. It had significant and consistent growth and now they have up to 300 outlets all around Indonesia. Not only have they had successful beverage outlets, Mixue also operates its own raw material factories including 5 regional warehousing and logistics centers. Now, the valuation of all of Mixue’s businesses is estimated at USD3.17 billion or around IDR49.54 trillion. Reportedly, Mixue plans to release shares in Shenzhen and raise USD918 million (IDR14.3 billion).
The rapid rise of Mixue is no coincidence, they have perfectly executed various marketing strategies. First, Mixue utilizes a trading area. A trade area is defined as a geographic area from which a community generates the majority of its customers. Specifically, Mixue takes advantage of crowded areas in small towns and areas near education such as schools and universities. Secondly, Mixue has a perfect target market. By implementing affordable product prices, it can be said that Mixue targets the lower middle class. Which leads to one of their biggest strategies, which is their drastic low prices compared to their competitors. For example, for ice cream cones, it only costs IDR8,000. Meanwhile, several other variants cost no more than IDR25,000. Lastly, social media also played a big role in increasing Mixue’s brand awareness. This condition occurs when social media users, especially influencers, buy the ice cream product and then review it on their social media pages. This is what then creates the fear of missing out (FOMO) in society. Ultimately, attracting more people to try the products themselves which no doubt made Mixue’s popularity increasingly trendy.
In conclusion, Mixue’s rapid rise was mainly caused by various marketing strategies that were perfectly executed. From the strategic spot for the store, the price setting, and the brand awareness campaign, were all clicked into their own spot in the building of Mixue’s success.
So, what are your thoughts? Do you think Mixue’s success was purely great marketing strategies followed with perfect execution or their success was just luck?
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