TWG TEA

MM576 Group Presentation

Group Members:
Beatrice Steven
Joyce Valerie
Kassim Wendy
 Table of contents
01 Background - Background of TWG TEA

02 Segment
Target -
-
TWG TEA’s position, segment and value
The way that TWG TEA create & deliver values

03 Designer Tea Brand

As a Fashion -
-
Strategy currently adopted
Recommendations

04 Expansion - Current Expansion Plan

- Factors limiting its current expansion
Plan - Recommendations
Questions for today’s presentation

Q1: How does TWG Tea create and deliver values to its target customers

Q2: Evaluate TWG Tea’s strategy to be a fashion designer tea brand

Q3: What expansion plans should TWG Tea engage in? What factors might
limit its expansion
 01
Background
 Premium Tea Industry
Overview
Growth & Size: experienced steady growth, driven by consumer preference for high-quality, organic, and
ethically sourced products & projected to grow through 2031 (CAGR of ~12%)

Consumer Trends: leaning toward luxury, health benefits, and exclusive experiences with increased
demand for organic, fair-trade, and exotic blends, driven by wellness trends and an affluent,
health-conscious customer base.

Regional Insights: Asia-Pacific is the dominant market due to deep-rooted tea traditions, with emerging
growth in China and India.

Key Players: TWG Tea, Fortnum & Mason (UK), Mariage Frères (FR), Harney & Sons (US), and T2 Tea
(AU) - all these brands emphasize heritage, quality sourcing, and unique blends.

Target Audience: Affluent, educated, and health-conscious consumers who value exclusivity and
premium quality, including tourists, luxury shoppers, and corporate buyers (for gifts).

XIE Jiaxin
Company Introduction
Established in Singapore, celebrating the year 1837, when the island became a
trading post for teas, spices, and fine goods.

Founded in 2008 as a luxury concept, TWG Tea (Tea WG in Hong Kong) integrates
unique retail outlets, exquisite tea rooms, and a global distribution network.

Passionate about sharing its expertise, TWG Tea offers over 1,000 single-estate, fine
harvest teas, exclusive blends, tea patisseries, and tea-infused delicacies.

Recognized internationally as an innovator and the top player of the industry,

TWG Tea creates new tea varieties each season, collaborating with renowned
estates.

The brand prides itself on shaping its aesthetic image, respecting Asian and
European traditions of elegance, beauty, sensuality, and originality. offering
customers a journey of sensations.

XIE Jiaxin
 02
Target
Segment
- Introduce & analyze TWG TEA’s positions, segment, and value
- Creating and delivering values to its target customers
Target Segment

Position Segment Value

High-end & Gourmet tea Quality
Luxury Consumers
brand
Emphasizing quality Experience
Tea Enthusiasts
exclusivity
Sophisticated tea-drinking Brand Heritage
Gourmet Markets
experience
Exclusivity

XIE Jiaxin
Creating & Delivering Values to Customers
Offering Fine, Premium, and Gourmet Products
● Strong and good relationship with supplier to
obtain rare tea blends
● Tea leaves are carefully selected and curated
● Haute Culture Teas

Large Variety of Tea selection

● Finest and largest collection of premium tea selection
from every producing country in the world
● > 1000 single estate fine harvests

Quality Assurance
● Founder has deep and vast knowledge on tea
● High quality hand picked teas sourced from renowned tea
producing region emphasizing freshness and purity of its
products
XIE Jiaxin
Creating & Delivering Values to Customers
Unique, Immersive & Luxurious Customer Experience
● Ambiance, service, presentation, and products crafted to
embody luxury and finesse
● Experience at TWG Salon & Boutique to stimulate senses
and memories that promotes into luxurious lifestyle
● Exceptional Customer service that tailors to
personalization

Innovation & Creativity

● Tea infused dishes and sauces (enhances dining
experiences)
● Tea flavored pastries
(Eg. Macarons, cookies, chocolate)

LI Jiayi
Creating & Delivering Values to Customers
Offers accompanying tea related accessories:
● Vast collection of teapots
(Eg. elegant porcelain, fine china, hand-blown glass)
● Cups
● Tea tins
● Flatware (Silver cutleries, etc)

Emotional and Culture embedded Brand Story

● Leverages its rich history and Singaporean heritage
for a unique narrative that resonates with its target
market

LI Jiayi
 03
Fashion Designer Tea
Brand Strategy
- Current strategy evaluation
- Recommendations to improve or better compete with its competitors
Current Strategies
Brand Positioning
● TWG Tea positions itself as a luxury designer tea brand
through its products, packaging, service, and etc
● Differentiation it from mass-market tea brands and
aligns with other high-end lifestyle brands

Product innovation to keep the brand fresh and exciting

● Seasonal Product, New tea blends, Exclusive products
● Tea inspired products

Wants to make tea “affordable indulgence”

● Product pricing range that caters to
all types of customers from mid to high end

HUETTE Valerie Riady

Current Strategies
Naming strategy
● TWG offline store is name “Salon & Boutique” that conveys
luxury and premium
● Exotic blends are named uniquely and in a luxurious manner.
Eg. Silver Moon, Magic Flute, etc

Partnerships with upscale brands to enhance its brand visibility

and prestige and reinforce its image as a premium brand
● Airlines: Singapore Airlines (first and business class)
● Retailers: Dean & Deluca, Harrods
● Hotels: Starwood groups
● High end shopping malls: Marina bay sands, etc

HUETTE Valerie Riady

Current Strategies
Exclusive Loyalty Membership Program
● By invite only membership
● Exclusive benefits such as early access to new products,
special events, birthday vouchers, and personalized
wellness plans

Although current strategies have well placed TWG Tea on the top of
its industry and market, there are still improvements to be made to
further capture more audience, increase its presence, and ultimately
sales

HUETTE Valerie Riady

 Recommendations
● Collaboration strategy: Collaborate with renowned designers or artists for special
packaging and blend creation.
● Limited Edition Collections: Launch exclusive, time-limited tea collections with unique
blends and packaging.
● E-commerce focus: Enhance online presence to reach global consumers directly.
● Expanded Lifestyle Products: Develop a broader range of tea-inspired lifestyle products,
such as perfumes or skincare lines.
● Personalization & Customization: Allow customers to create their own tea blends
according to their own preferences.
● Utilization of Brand Ambassadors: Engage with key opinion leader as brand ambassador
to further increase branding and presence especially in unreached territories.
● Social Media and Influencer Trends: Jump on the social media and live streaming sales
trend while utilizing influencers.
● Localize Social Media presence: Develop stronger social media presence in different
countries
ABUBAKARI Kassim
 04
Expansion
- Current Expansion Situation
- Recommended Expansion Plan
- Factors limiting its expansion
- Suggestion on how to avoid/eliminate limitations
Product Diversification
TWG TEA’s Traditional Product/Service:
✔ Tea Boutique
✔ Tea Bags/ Loose Tea Bags
✔ Tea Accessories
✔ Pastry (E.g., Sakura Cake/ Macarons)

Expansion Plan of Takeaway Service:

- In 2022, they first launched the takeaway tea service
- First Time
- E.g., Using the Takeaway Service with Luxurious gold cup
& Reusable glass straw

Reflect its PREMIUM position

[Emphasize on the quality & luxury]
XIAO Yuting
 Current Geographical Expansion:
Mainland China
Mainland China Outlets:
• ONLY 2 stores in Shanghai
• Very limited outlets in
Mainland China market

Relatively LOW brand

awareness

XIAO Yuting
Recommended
Expansion Plans
Geographical Expansion
- More retail stores/outlets in other
major cities in mainland China
- E.g., Beijing, Guangzhou, Shenzhen…

Reasoning behind recommended

expansion plan:
- Expand its wealthy consumer Align with its position –
group in mainland As a Premium Brand

- Economically prosperous areas/ Increase Brand Awareness in

high-traffic luxury shopping areas Mainland China
XIAO Yuting
Recommended Expansion Strategies
✔ Social Media Engagement

Cooperate with influential internet Promote & Advertise

celebrities/ influencers & KOLs in products/services/brand
mainland China

Publish/post on Social Media:

- TWG TEA store visit videos/reels on Douyin Increase Brand
- Publish TWG TEA’s product/service promotions Awareness
on Xiaohongshu

XIAO Yuting
Further Recommendations on Expansion Plans
✔ Tea Experience & Trying events
• Pop-up events and activities Reach a wider
• In High-traffic Area/ Shopping mall target
audience

✔ Partnership with Local beverage stores

• Cooperation with local famous Help to associate

beverage stores/brands with another brand
• Mixed flavored teas positively
• Co-branded products (E.g., Teacups)
E.g., Nike x Tiffany & Co. Strategy

Increase Brand Awareness

XIAO Yuting
Factors that limit its expansion
Cultural preference and consumption habits
- Consumers have a strong regional &
cultural background in their choice and TWG, as a foreign
drinking style of tea brand, may face
- Consumers tend to be familiar with local cognitive obstacles
brand when choosing tea

Regional differences in consumption levels

- First-tier cities usually have high
consumption capacity and higher The market potential
acceptance of high-end brand of TWG in some
- Consumers in second-and third-tier cities low-consumption
pay more attention to cost performance areas of Chinese
and the local tea brands there have mainland is limited.
stronger market penetration

WEN Qiya
Social Media limitations
Rapidly changing trends
✔ Changes in user habits

✔ Lack of brand attraction

Challenge in target customers of social media

✔ Diversity of user groups

✔ Information overload

WEN Qiya
Suggestion to Avoid Limitations
For Geographic limitation
Market research
• Fully understand the tea culture and tea drinking habits in Chinese mainland
• Identify different consumer groups and formulate targeted marketing strategies

Flexible pricing strategies

• In first-tier cities, TWG can open high-end tea shops or special tea beverage stores
• In second-and third-tier cities, TWG needs to consider combining online channels to
expand the market

Different price level products

• Provide normal products at moderate prices to attract price-sensitive consumers
• Retain and promote high-end products to attract consumers who pursue quality

WEN Qiya
For Social media limitations
Channel optimization
• Evaluate the sales potential of various social media platforms
and choose suitable platforms to settle in
• Identify effective publicity channels, such as holding offline
promotion activities
• Use data analysis to understand the most effective content
types and release opportunities, and then place targeted
advertisements
Improve the interaction mechanism
• Hold more online interactive activities to attract consumers,
such as online lottery
• Encourage consumers to share their consumption experience
through reward mechanism

WEN Qiya
Q& A
References:
[1] Changing consumer needs and opportunities for tea in Asia... Euromonitor. (2023, August 31).
https://www.euromonitor.com/article/changing-consumer-needs-and-opportunities-for-tea-in-
asia-pacific
[2] Deore, N. (2024, August 26). The global high-end tea market size is USD 126841.5 million in
2024. Cognitive Market Research.
https://www.cognitivemarketresearch.com/high-end-tea-market-report
[3] Design Shifu. (September 27, 2023). 11 co-branding examples in 2023 to get inspired. Retrieved
October 9, 2024, from https://designshifu.com/co-branding-examples/
[4] TWG tea: Luxury Teas & Accessories Online. TWGTea. (n.d.). https://twgtea.com/

We declare that Generative AI tools HAVE been used to prepare the submitted work. The
Generative AI tools used and the manner in which they were used are as follows:
Research history of TWG Tea & its market, and Brainstorm ideas on future strategies