Entrepreneurship

Based on the successful lab experiment, we designed a rose tea infused with rose flavones to alleviate the early onset of neurodegenerative diseases associated with circadian rhythm disruption. This refreshing and natural beverage combines the delicate flavors of rose with the powerful health benefits of rose flavones, offering a convenient solution for busy individuals seeking to enhance their well-being. Our product embodies a commitment to health, sustainability, and community well-being. We advocate for a lifestyle that promotes balance and wellness, particularly for those who frequently stay up late due to work or study demands.

Rich with rose flavonoids, our tea is scientifically shown to support cognitive health and reduce the risk of neurodegenerative conditions; Available in a portable bottled format, it fits seamlessly into the fast-paced lives of students and professionals, allowing for easy consumption at any time; Made from high-quality, sustainably sourced rose petals, the tea is free from artificial additives and preservatives.

Our product integrates traditional herbal wisdom with modern nutritional science, creating a unique beverage that not only tastes good but also health beneficial. We are dedicated to raising awareness about the risks created by circadian rhythm disruption. We will keep supporting educational initiatives focused on sleep health, ensuring that our business contributes positively to community.

a. Customer Survey

To have a deeper understanding on our customer's preferences, we conducted a online product survey questionnaire in July, "Customer Survey on Rose Flavone Tea", and received over 1000 valid answer sheets. We reached the following two conclusions and hope that they will provide positive guidance for the development of our tea product.

Tea Consumption
The majority of participants drink tea, accounting for 87.86%, with the most preferred types including Green Tea (54.25%) and Black Tea (51.87%). The main forms of drinking tea are loose tea (70.55%) and tea bags (43.94%).

Product price acceptance and suggestions
Regarding product pricing, the optimal price range for a box of 10 bags is primarily concentrated between 15-30 yuan, while the price for a bottle is mainly between 5-10 yuan. Suggestions from participants regarding the product mainly include offering caffeine-free/low-caffeine options (47.06%) and launching multiple flavors (22.89%), among others.

Concluding from our research, we expect our product to be 500ml per serving, containing approximately two whole roses (around 4 grams), rose flavonoids (around 50 milligrams), and 470ml of purified water. The cost breakdown is as follows: roses at approximately 0.5 yuan per gram, rose flavonoids at approximately 0.18 yuan per gram, and purified water at approximately 0.4 yuan per liter. Therefore, the approximate cost per serving is around 2.3 yuan. After conducting research on similar competitors in the market and conducting actual interviews with the relevant personnel in charge of MixueBingcheng milk tea shop, we anticipate setting the retail price at 9.9 yuan. We believe that the primary profit point of our product lies in its innovative addition of rose flavonoids, which enhance the beverage's functionality.

This Targeted enhancement caters specifically the needs of individuals who stay up late, making it a more attractive option in the market. By incorporating this unique selling point, we aim to achieve a substantial profit margin while fulfilling a niche consumer demand.

b. Health Tea Market Analysis

In parellel with the customer survey, we analyzed market data in the current Chinese health tea market, to find out the potential of health tea and find a suitable positioning for our product. Below are our analysis and conclusion.

I. Analysis on Health Tea Market Size
According to the latest report by iiMedia Research, titled "2024 China Health Tea Industry Status Research and Consumer Insights," the market size for health tea in China reached 41.16 billion yuan in 2023, marking a year-on-year growth of 27.3%. It is projected to exceed 100 billion yuan by 2028.

Over 90% of consumers spend more than 50 yuan monthly on health tea, with taste and flavor being the most critical factors for 65.2% of consumers. In the context of a youthful consumer demographic and an increased demand for health-conscious products, health tea companies must enhance product innovation and technological upgrades to improve quality and expand distribution channels. Additionally, they should focus on developing products that cater to the growing market of health-conscious young consumers.

II. Consumer Demographics and Spending Habits
Younger Consumer Base: The health tea consumer demographic is increasingly skewing younger, with young consumers showing greater acceptance and preference for health tea products, driven by new health ideologies and upgraded consumption demands. Expenditure Patterns: Over 90% of consumers spend more than 50 yuan monthly on health tea, indicating a strong investment in these products. Notably, 41.0% of consumers spend between 101-200 yuan, while 34.3% allocate 51-100 yuan per month. Key Consumption Factors: Taste is paramount, with 65.2% of consumers prioritizing flavor when choosing health teas. This underscores the importance of palatability alongside health benefits in attracting consumers.

III. Market Trends and Opportunities
Youth-Oriented Health Market: With the rise of younger consumers pursuing healthy lifestyles, companies should develop products tailored to youthful tastes and preferences to capture market share. Product Innovation and Technology Upgrades: In response to the youthful demographic and evolving health consciousness, companies must focus on continuous product innovation and technological advancements to meet diverse consumer preferences. Channel Expansion and Market Development: Beyond traditional retail channels, health tea brands should explore online sales and live commerce to broaden market reach and enhance brand visibility.
In summary, the Chinese health tea market is in a phase of rapid development, characterized by expanding market size, a younger consumer base, and diversified product offerings. To seize these opportunities, health tea companies must emphasize innovation, enhance sales channels, and target the emerging youth health market for sustainable growth.

Based on the market investigation, we designed our product primarily focusing on individuals who frequently stay up late, who faces higher risk of the early onset of AD. These customers can be categorized into two groups, each with distinct characteristics: our end users:

Students:

1. Reasons for Staying Up Late: Studying for exams, completing assignments, participating in social activities, or engaging in entertainment
2. Needs: A healthy tea that helps alleviate mental fatigue and soothes emotions, allowing them to stay energetic during the day.

Workers:

1. Reasons for Staying Up Late: Night shifts, high work pressure, managing complex tasks, and fulfilling responsibilities.
2.Needs: They need product that combats exhaustion, reduces the negative effects of night shifts, and supports health protection. Based on our analysis of target customers, we have identified that a significant portion of our clientele is comprised of young individuals. To cater to their preferences, we have developed a bottled tea drink. This format not only provides convenience by saving preparation time compared to traditional tea bags, but it also addresses the time constraints faced by our customers.

To enhance visibility and attract more attention, we aim to raise awareness about the dangers of sleep deprivation and the associated risks of neurodegenerative diseases. Our promotional efforts will primarily utilize social media platforms such as Xiaohongshu and TikTok.

Based on our analysis of target customers, we have identified that a significant portion of our clientele is comprised of young individuals. To cater to their preferences, we have developed a bottled tea drink. The bottled tea provides convenience, not only saved the preparation time of tea compared to traditional tea bags, but also simplified the procedure from purchasing supplements to taking them, addressing the problem of time constraints faced by our customers and the forgetfulness of taking supplements regularly. To enhance visibility and attract more attention, we aim to raise awareness about the dangers of sleep deprivation and the associated risks of neurodegenerative diseases. Our promotional efforts will primarily utilize social media platforms such as RED and TikTok.

During the development process, we interviewed a teahouse owner to gather feedback on our product and to promote further collaboration. The owner pointed out that bottled tea drinks fall under the category of modern Chinese tea, which may not be suitable for sale in traditional teahouses where high-end customers expect freshly brewed tea. However, she suggested that our product could be successfully marketed in convenience stores, hotels, and fruit spas to attract young individuals who tend to stay up late. In terms of cost and pricing, the owner emphasized that pricing should vary depending on the location and circumstances. She noted that if pricing were based solely on product cost, 9.9 RMB would be relatively affordable compared to similar functional teas in the market. However, when factoring in labor and operational costs, a price point between 11-12 RMB would be more appropriate. For sale in teahouses, the price should be no less than 30 RMB. Additionally, the owner recommended that the product should clearly display key information such as shelf life, dosage, and preservative content. She also advised considering whether heating the product might affect its efficacy, to better meet diverse consumer needs.

Team Squirrel-Beijing has created comprehensive materials to assist individuals in launching their own businesses based on the project. These resources are designed to help guide the process of bringing products to the market. For more details, please refer to the following documents.

To imply the principle of Food Safety and Social Responsibility, Squirrel Beijing has conducted thorough esearch on Food Safety Law of People's Republic of China, especially focusing on the regulation of bottled drink, health supplementas, and tea, to ensured that the design of our product is within the scope of food safety law. Attached is part of Chinese Regulations of Health Supplements and Tea Products. (Chinese version.)

During the decision-making process to develop bottled tea, our team member have also experimented with the production of tea bags. The team conducted multiple trials to determine the optimal shape for the tea bags, ensuring that rose flavone were well-extracted. Although not applied in the final product, the tea bag provided the team with insights on the extraction of rose flavonoids and the idea of sustainable packaging. On a vertical production line, rose flavonoids extraction was spread on a single-layer filter paper and folded in half to wrap around the tea leaves, which was slowly turned the horizontally flat filter paper into a V-shape, and then the V-opening was filled with crushed rose petals, we tightly wrapped it, and the tea bag became a U-shape. Afterwards, the hot press compacted the edges and cut them horizontally, the production of a square tea bag was completed.

[1]Analysis on the Marketing Strategy of New Tea Drinks in China: A case study of HEYTEA DOI: 10.54254/2754-1169/5/20220088
[2]Marketing strategy analysis of nano tea product based on mangosteen peel(gracinia mangostana)to promote functional foods industry DOI: http://dx.doi.org/10.17358/IJBE.5.3.26
[3]Review on herbal tea as a functional food: classification, active compounds, biological activity, and industrial status DOI: https://doi.org/10.1016/j.jfutfo.2023.02.002
[4] An Innovative Business Model of Chinese Herbal Medicine in Handmade Tea Beverage Market in China DOI： 10.2991/aebmr.k.200626.005
[5] 2024 China Health Herbal Beverage Industry Status Research and Consumer Insight Report. https://www.iimedia.cn/c400/100683.html