Viral Mixue on Social Media Potential for Profit?

Not long ago, Indonesia was made excited by social media posts that initially featured the cute and adorable Mixue mascot. Then, this trend was continued with the opening of many Mixue franchise outlets which were mushrooming everywhere.

Based on the Marketline report as quoted by Indonesian SMEs, the compound growth rate (CAGR) of the ice cream industry in the period 2015 to 2019 grew by 10,4%, and when the pandemic passed, the number of ice cream consumers increased by 7-8% from before.

Mixue is one of the ice cream companies that has successfully expanded in Indonesia. Mixue itself has offered an Initial Public Offering (IPO) on the Shenzhen Stock Exchange, which last year it was reported that Mixue had earned up to $ 1,4 billion in revenue.

A brief history of Mixue

Mixue is an F&B franchise business that provides ice cream and tea with various flavors. The beginning of the emergence of Mixue came from China, to be precise in the Zhengzhou district, Henan Province, which later developed into a franchise business. The owner of Mixue is Zhang Hongchao, who started the business by borrowing money from his grandmother in 1997.

Menurut Momentum Works report, the business then spread throughout the world with a total of 21.582 outlets, aka more than Burger King. Not surprisingly, Mixue's expansion has been very rapid in its business.

The increase in the total number of Mixue outlets is also evident become a franchise business bubble tea largest in Southeast Asia. This is based on the Momentum Works report which states that as many as 1.000 Mixue outlets have been spread across several countries in Southeast Asia, such as Vietnam, Thailand, Singapore, the Philippines, Malaysia and even Indonesia. Mixue itself began to expand its reach to Southeast Asia in 2018.

Number of Mixue outlets

The Mixue outlet in Indonesia was first present in 2020. According to IDX Channel, in the period March 2022 the total number of Mixue outlets in Indonesia has reached 317 stores, and this is predicted to continue to increase until the end of the year. The product prices offered by Mixue are relatively affordable, especially for consumers in Indonesia.

Based on reports Nikkei Asia, the costs required to open this franchise are quite affordable, and the number of Mixue outlets by the end of 2022 is expected to be close to 30.000 outlets. This potential can be exploited to make money, coupled with the virality of Mixue on social media, such as TikTok, Twitter, Instagram, and others.

Mix strategy

Taking advantage of Mixue's virality on social media has become one of the strategies marketing which has a positive impact. This is based on the price offered by this franchise business, which is relatively affordable in comparison brand others that provide ice cream, and the taste is also favored by the people of Indonesia.

In addition, Mixue has got Branding in Indonesia through social media that every time there is an empty shophouse or building, Mixue will fill it. People can think of this trend as a joke, but this also makes Mixue's name rise. In the end, in areas that don't yet have Mixue, there is a huge opportunity to open this franchise business.

Even so, there is curiosity from the Indonesian people about something that is viral, which makes the desire to try it even higher due to the incessant marketing on social media. Mixue's popularity on social media is one of the reasons why Mixue's virality in Indonesia can generate cash.

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This article was written by Stella Kova, an alumnus of the program DNA #Cohort1 initiated by DailySocial.