The Success of Chagee - Who is the Founder of Chagee

Summary

Jong Jun's life is a powerful story of resilience and ambition. After losing his parents and being homeless at 10, he taught himself to read and worked his way up from a bubble tea shop employee to the founder of Chagi, a rapidly growing bubble tea brand. With a vision to promote Chinese tea culture globally, he created a unique product offering, focusing on high-quality ingredients and efficient production. Today, Chagi has expanded globally, competing with industry giants like Starbucks. Jong’s journey is a testament to the power of hard work, determination, and entrepreneurship.

Takeaways

• 😀 Jong Jun became homeless at the age of 10 after losing his parents but transformed his life in just 7 years.
• 😀 He didn't learn to read until he was 18, showing the importance of resilience and self-education.
• 😀 His first job was in a bubble tea shop at 17, where he worked hard, learning valuable skills for his future.
• 😀 Despite lacking academic qualifications, Jong Jun made up for it by studying books and gaining knowledge year-round.
• 😀 From 2010 to 2013, he built a strong foundation in the bubble tea industry, preparing him for entrepreneurial success.
• 😀 He franchised a bubble tea shop and earned his first significant income, which set the stage for his future business ventures.
• 😀 Jong Jun worked in a tech company to learn about company management, structure, and funding, which helped shape his business vision.
• 😀 In 2017, he founded Chagi, a bubble tea brand, focusing on using high-quality ingredients and creating a unique product.
• 😀 He positioned Chagi's prices between 15-20 Yuan, providing consumers with affordable, high-quality products.
• 😀 Chagi's success can be attributed to product differentiation, offering a healthier option with zero creamer and zero hydrogenated oil.
• 😀 The company overcame the challenge of long wait times by developing specialized equipment that allows for mass production, increasing efficiency and customer satisfaction.
• 😀 Chagi’s larger store format and customer-friendly design aimed to raise industry standards and improve profit margins by increasing the average time customers spend in-store.
• 😀 Jong Jun's ambition extends to global expansion, aiming to open Chagi stores worldwide and surpass Starbucks in market presence.
• 😀 From 2017 to 2023, Chagi's annual sales grew to 10.80 billion yuan, and the company aims to surpass 20 billion yuan in sales by 2024.
• 😀 Jong Jun's journey demonstrates that starting small is okay, as long as you work hard, stay hopeful, and embrace opportunities for growth.

Q & A

How did Jong Junia's early life shape his entrepreneurial journey?

Jong Junia's early life was marked by hardship. He lost his parents at the age of 10 and struggled with homelessness. Despite not learning to read until the age of 18, he persevered, learning self-sufficiency and resilience. These early struggles motivated him to work hard and develop his business acumen later in life.

What was Jong Junia's first job and how did it influence his future success?

Jong's first job was at a bubble tea shop at the age of 17. Despite lacking formal education, he worked long hours and treated the job as a learning platform. This hands-on experience taught him the fundamentals of running a business, which played a key role in his later success with Chagi.

What strategy did Jong Junia employ to differentiate Chagi from its competitors?

Jong Junia focused on offering high-quality Chinese tea with a commitment to authenticity. He used premium tea leaves and milk instead of creamer, priced products affordably, and introduced a new style of tea, such as the tea latte, which allowed for everyday consumption, further distinguishing Chagi from other brands that relied heavily on fruit and milk-based teas.

Why did Jong Junia choose to open Chagi's first store in Yunnan instead of a larger city?

Jong chose Yunnan for Chagi's first store due to his personal connection to the area, as it was his hometown. Additionally, Yunnan is the birthplace of tea, and opening there helped avoid competition with stronger brands in larger cities, providing space for growth.

How did Jong Junia use his background to develop Chagi's branding?

Jong used Chinese cultural elements in Chagi’s branding. The brand’s name, 'Chagi,' was inspired by the Chinese epic 'Farewell Concubine,' reflecting his commitment to authenticity. He also integrated traditional Chinese tea into his product offerings, emphasizing the cultural significance of tea.

What challenges did Jong Junia face in the bubble tea industry and how did he overcome them?

One of the main challenges Jong faced was differentiating his brand in a saturated market. He overcame this by offering unique products, focusing on quality, and addressing operational challenges such as mass production and long wait times for customers. His innovations, such as developing standardized equipment for faster tea production, helped solve these problems.

What innovations did Jong Junia introduce to Chagi’s store experience?

Jong introduced larger store spaces, which set Chagi apart from other bubble tea shops that were typically small. This allowed customers to relax or work in-store, increasing customer stay time and encouraging higher spending. The store design also contributed to a more comfortable and inviting atmosphere.

How did Jong Junia manage the rapid growth of Chagi?

Jong managed Chagi’s growth by focusing on scalability and standardization. He invested in equipment that allowed for high-volume production, similar to coffee machines used by Starbucks, which helped meet the growing demand. His focus on efficiency and quality control also contributed to the brand's expansion.

What is Jong Junia’s ultimate goal for Chagi's global expansion?

Jong’s ultimate goal is to bring Chinese tea culture to the world. He aims to expand Chagi’s presence globally, surpassing Starbucks in market share and connecting over 100 countries through milk tea. His vision includes opening stores worldwide and selling billions of cups annually.

What lessons can be learned from Jong Junia's journey from hardship to success?

Jong Junia’s journey teaches us that perseverance and hard work are crucial for overcoming challenges. Even if one starts with little, dedication, self-education, and the ability to adapt and innovate can lead to extraordinary success. His story is an inspiration to never give up, regardless of the obstacles.