When one talks about internationally known Taiwanese food, frothy pearl milk tea, or tea shakes mixed from a wide array of ingredients, certainly deserves mention. Meanwhile, franchises selling these Taiwan-style beverages have spread from their home market to China, Japan, Southeast Asia and even North America and Europe. Whenever a new tea shake outlet opens, it is bound to cause considerable buzz. Competition in the fast-paced beverage market in Taiwan and abroad is fierce, and while numerous chains have established a loyal following over the years, a dominant brand comparable to Starbucks in the coffee beverage sector or McDonalds among the hamburger chains has yet to emerge. New brands seem to be popping up all the time, wooing consumers with ever more creative flavors or design styles that cause ever-greater internet hype. Thanks to the emergence of delivery apps, the beverage-to-go market has gained considerable potential.

Taiwanese consume non-alcoholic hand-shaken drinks worth more than NT$50 billion each year, according to Finance Ministry statistics that are based on the uniform invoice receipts issued by stores. The actual amount is most likely much higher. However, since Taiwan’s domestic market is more or less saturated, some startups or franchisees are branching out abroad or directly entering less crowded overseas markets.

Bangkok is a highly competitive place and Thailand’s most populous city, with 9.5 million people. The Thai capital has always led other Southeast Asian cities in terms of internationalization and purchasing power. On top of that, the locals are willing to try new things. Bangkok ranks among the global top-three cities in international arrivals for tourism and business. The only other Southeast Asian cities that made it into the Top Ten in 2019 were Singapore and Kuala Lumpur. As a result, the major Taiwanese tea beverage brands have all opened outlets here, including Coco, KOI Thé, Share Tea, Tigersugar and Yifang fruit tea. Independent outlets and night market stalls selling tea beverages have also contributed to the rapid growth of this market within just a few years, not to speak of home-grown Thai-owned shops, quick to replicate the Taiwanese offerings, also selling pearl milk tea and various tea concoctions to an eager market.

Source:  Jack I.C. Huang

Another newcomer worth mentioning for its entry into this hotly contested market is GABi KAPi, which also hails from Taiwan. Instead of starting out in Taiwan’s virtually saturated domestic market, the beverage brand directly attacked the overseas market, with only its headquarters and product development team remaining in Taipei’s Neihu District. When the company opened its first flagship store in Bangkok late last year, it chose a prime shopping location – Siam Center, which is comparable to the Zhongxiao–Fuxing area in Taipei. In one of the busiest areas of Bangkok, GABi KAPi attracts young Thai consumers with various lines of special tea concoctions.

The market for hand-shaken beverages is particularly large in major Southeast Asian cities. Although prices are 1.2 times to 1.5 times higher per cup than in Taiwan (which makes such drinks quite expensive given local salary levels), people queuing in front of to-go beverage counters are a common sight. In this thirsty market, store operators are therefore trying to stand out by positioning themselves in a unique way. GABi KAPi chose to cross into the coffee market to avoid excessive competition with the established tea beverage franchises. 

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Previously, the majority of tea beverage vendors in Bangkok used to offer standard fare – using pure tea or tea mixtures in combination with tapioca pearls, konjac jelly and other ingredients. But more recently, the latest beverage fads from Taiwan are appearing in the local scene, again drawing long lines of curious customers who are hungry for change and new, more upscale creations. These include bubble milk tea with brown sugar syrup, layered drinks in different colors, and healthy drinks featuring fresh fruit. Jumping on the bandwagon, GABi KAPi uses coffee instead of tea as a base for its creations and matches them with a different range of soft or chewy food items to make “special mix” beverages that have won an enthusiastic following on the internet, not only for their unique flavors but also their colorful appearance.

Source:  Jack I.C. Huang

Of course, gaining a strong foothold in Bangkok’s competitive business environment is not easy. While the huge crowds of shoppers promise ample business opportunities, the cost of doing business in prime areas such as store rents is high. With competing beverage outlets just a few steps away, fickle consumers have plenty of options. Brands that are unable to develop a special character and frequently change their menu to increase customer loyalty and increase economies of scale are quickly replaced by ambitious new market entrants. The GABi KAPi founder has retained its product development and headquarters in Taiwan to ensure the continued release of new flavors and condiments. At the same time, the company is standardizing the supply chain and know-how, strictly controlling food safety and quality and plans to aggressively expand its overseas market. Aside from Bangkok, plans for directly managed outlets in Vietnam, Malaysia and Japan are under way, providing a broader stage for the hand-shaken beverages that are Taiwan’s pride to shine in the world. (Read: Top 2000 CEO Survey: Southeast Asia Replaces Longtime Favorite China)

Looking at Thai food trends in recent years, one can observe that the newcomers among the Taiwan-style beverage outlets in Bangkok (or more broadly in Southeast Asia) tend to be more sophisticated, with some of their creations having attained celebrity status. Stores come up with special creations to tickle the palates of increasingly picky consumers and offer products with an attractive appearance to entice people to photograph them and create new locations to tag on the internet and social media apps. The special drinks also serve to establish a clear brand image to make it easier for consumers to distinguish among competitors and strengthen their willingness to buy a certain brand.

Taiwan’s beverage culture is demonstrating its multi-faceted character overseas. Whenever Taiwan comes up in a conversation with foreigners, they inevitably mention Taiwan-style drinks. After expanding from the domestic market, Taiwanese beverage chains have nearly doubled their market value, as a cup of bubble tea can be sold at prices as high as or even higher than Starbucks coffee in certain Southeast Asian cities where Taiwan-style beverages are particularly popular. Despite the comparably high prices, customers keep flocking to the outlets, patiently standing in line. This shows just how popular Taiwanese beverages are.

Translated by Susanne Ganz
Edited by TC Lin, Sharon Tseng

Crossing features more than 200 (still increasing) Taiwanese new generation from over 110 cities around the globe. They have no fancy rhetoric and sophisticated knowledge, just genuine views and sincere narratives. They are simply our friends who happen to stay abroad, generously and naturally sharing their stories, experience and perspectives. See also Crossing Arab World.

Original content can be found at the website of Crossing: 在曼谷的「手搖杯一級戰區」，這個台灣飲料品牌挑戰主攻「咖啡」市場

This article is reproduced under the permission of Crossing. It presents the opinion or perspective of the original author / organization, which does not represent the standpoint of CommonWealth magazine.