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The encyclopedia · Strategy & Leadership · Strategic decision · 2025

Jidong fell below 1,000 stores as herbal tea commoditised

A once-thriving herbal-tea chain fell below 1,000 stores in 2025 as the tea commoditisation wave consumed every brand built on a single ingredient

Jidong Herbal Jelly · 悸动烧仙草 · 2025

What happened

悸动烧仙草 built a chain on a single ingredient: 烧仙草 (herbal jelly), a traditional Fujian/Taiwanese dessert. The brand grew rapidly during China's tea boom, reaching more than 1,000 stores by positioning itself as a specialist in a niche that consumers associated with authenticity and health. Its herbal-jelly drinks and desserts carved out a distinct space in a market otherwise dominated by milk tea and fruit tea chains.

By 2025, the chain's store count had fallen below 1,000 for the first time in years. The decline reflected a brutal dynamic: brands built on a single product are the first casualties when that product becomes commoditised. Every tea chain in China now offered a herbal-jelly option, turning 悸动's core differentiator into a menu item that any competitor could copy and undercut.

The drop below 1,000 stores signalled that the company had passed an inflection point. The specialist model that had worked when the brand was a pioneer no longer protected it in a saturated market where consumers had dozens of choices within a 500-metre radius. Without a second act or a broader product moat, 悸动烧仙草 joined the long list of single-concept tea chains that peaked and declined within a decade.

Why it happened

  • A single-ingredient specialist is defenceless once that ingredient becomes a standard item on every competitor's menu — differentiation evaporated overnight.
  • The broader tea market's saturation meant that every specialist chain faced declining foot traffic as consumers spread their spending across more brands.
  • The brand built around herbal jelly could not easily pivot to new categories without losing the identity that attracted its core customers in the first place.
  • Newer tea chains offered broader menus and stronger social-media marketing, drawing away the young consumers who had once sought out niche specialists.
What it costFell below 1,000 stores, sustained store-count declinecostly

The lesson

A moat that is one ingredient wide is not a moat — the same market that made you a specialist will commoditise your specialty and move on.

Sources

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