Belajar Strategi MIXUE Dominasi Franchise FnB (MCD Hampir Kalah) #BedahBisnis

Summary

This video script explores the surprising business model of Mixue, a Chinese ice cream company that's more of a supply chain giant than a traditional food and beverage enterprise. With less than 1% of its revenue coming from ice cream sales and the majority from selling raw materials and packaging, Mixue's low-cost strategy has led to rapid global expansion. The script delves into the company's franchising model, economic of scale, and its potential to surpass McDonald's in the number of outlets. It also discusses the company's history, growth strategy, and the unique aspects of its franchisee-friendly approach, highlighting the importance of understanding Mixue's DNA to learn valuable business lessons.

Takeaways

• 🍦 Mixue is not an ice cream company but a supply chain company.
• 📊 Their revenue from ice cream sales is less than 1%, with the majority coming from selling raw materials and packaging.
• 🇨🇳 All their financial reports are in Chinese.
• 🔍 The speaker aims to analyze Mixue's strategy to understand their rapid growth and potential to surpass McDonald's in the number of outlets within 3-5 years.
• 💡 The key to their growth is the 'Economy of Scale', which will be explained in later chapters.
• 🌐 Mixue is the first Chinese ice cream company to have more than 10,000 branches worldwide.
• 📈 Their business model relies on a large volume supported by a franchise model, which allows them to reduce prices due to economies of scale.
• 💼 Mixue has undergone several changes, including a Series A fundraising and plans for an IPO to seek liquidity for their supply chain and factory investments.
• 📉 The revenue breakdown from March to June 2020 shows that only a small fraction comes from their own ice cream sales, with the majority from ingredients and packaging.
• 🏢 The company's DNA is rooted in low-cost, low-price strategy, targeting mass markets with medium to low average incomes.
• 📝 The franchise model is unique in that franchisees do not share profits with Mixue and are responsible for their own store management and costs.
• 💰 The total estimated cost for a franchise, excluding food ingredients, is around 700 million rupiah, with additional costs for ingredients and machinery.

Q & A

What is the primary business of Mixue apart from being known as an ice cream company?

Mixue is primarily a supply chain company, with the majority of its revenue coming from selling raw materials and packaging rather than the sale of ice cream.

What percentage of Mixue's revenue comes from the sale of ice cream?

Less than 1% of Mixue's revenue comes from the direct sale of ice cream.

Why is Mixue's financial report primarily in Chinese?

The script does not provide a specific reason, but it could be inferred that Mixue is a Chinese company and thus its financial reports are mainly in Chinese.

What is the significance of Mixue's low-cost strategy in its business model?

Mixue's low-cost strategy allows them to penetrate the market, attract a large customer base, and grow rapidly, which is a key part of their supply chain business model.

How did Mixue's founder start the company?

The founder of Mixue started the company by borrowing 7 million rupiah from his grandmother in 1997 to make a simple ice cream product.

What was the initial strategy of Mixue in the year 2000?

The initial strategy was to sell extremely delicious ice cream at a price significantly below the average market price, even below 1 yen.

How did Mixue expand its business after adopting the franchising model?

Within less than a month of adopting the franchising model, Mixue was able to open 27 new branches in China.

What is the economic concept that Mixue leverages to reduce costs and increase profits?

Mixue leverages the concept of economies of scale, which allows them to reduce the cost per unit as the volume of production increases.

What is the role of Mixue's supply chain in its business strategy?

Mixue's supply chain is central to its business strategy, enabling them to sell raw materials and machinery to franchisees, which constitutes the majority of their revenue.

What is the financial goal of Mixue's upcoming IPO?

The goal of Mixue's IPO is to raise 14 trillion rupiah for liquidity, which will support the expansion and strengthening of their supply chain.

How does Mixue's franchise model differ from traditional models?

Mixue's franchise model is unique in that franchisees do not share profits with the company, and they are responsible for purchasing raw materials and machinery from Mixue.

What is the initial investment required to become a Mixue franchisee?

The initial investment includes a franchise fee of 40 million rupiah, management fees of 24 million rupiah per year, training fees, and equipment costs of 170 million rupiah.

What are the terms of the franchise contract with Mixue?

The franchise contract with Mixue is for 3 years, and there is no additional cost to renew the contract, only the management fee needs to be paid.

How does Mixue ensure the affordability of its ice cream in the market?

Mixue ensures affordability by maintaining a low-cost structure and by not increasing prices, even as the company grows.

What is the potential future of Mixue's business model according to the script?

The script suggests that Mixue may gradually increase prices in the future, but in a way that customers may not even realize the increase due to the slow and steady approach.

How does Mixue's business model compare to McDonald's?

Like McDonald's, which is primarily a real estate company, Mixue is primarily a supply chain company, focusing on selling raw materials and machinery rather than directly selling food products.