Mixue Ice Cream & Tea’s Global Expansion: How Supply Chain Strategy Is Reshaping Its Overseas Growth

Within the wave of Chinese new tea drink brands expanding globally, Mixue Ice Cream & Tea stands as an undeniable leader. With more than 53,000 stores worldwide, its overseas footprint has surpassed 4,800 locations, establishing a dominant, scale-driven presence across Southeast Asia. Yet beneath this growth, a deeper and more complex strategic transformation is unfolding.

I. The Shift in Growth: From Rapid Expansion to Strategic Deepening

Mixue’s overseas expansion trajectory reveals a transition from rapid, volume-driven growth to a more deliberate and sustainable approach. As of December 2024, the company operated approximately 4,895 international stores, with annual net growth stabilizing at around 800 locations. In 2025, store counts moderated to roughly 4,700. This shift reflects a conscious move into what the company describes as “Phase 3.0,” defined by disciplined expansion, stronger operational foundations, and long-term profitability.

This transition was driven by challenges encountered during earlier expansion stages.

1. Management and Channel Pressures: In its early overseas push, Mixue adopted aggressive franchising strategies, including reduced entry thresholds and relaxed site approval standards. In markets such as Indonesia, this resulted in dense clustering, with as many as three or four stores within a 500-meter radius. The result was internal competition, declining single-store performance, and operational inefficiencies. In some cases, gaps in overseas management and oversight further strained the franchise system.

2. Supply Chain Vulnerabilities: More than 90 percent of equipment and raw materials for overseas outlets were sourced from China. In regions with underdeveloped logistics infrastructure, this dependence became a major risk. In 2023, supply planning missteps in Indonesia led to prolonged shortages lasting nearly four months during the Eid consumption peak, sharply impacting revenue and franchisee confidence.

These challenges underscored a central lesson: sustainable global expansion cannot rely on store count alone. Without a resilient supply chain and disciplined operational governance, scale becomes a liability rather than an advantage.

II. Rebuilding the Foundation: Restructuring the Global Supply Chain

Mixue’s domestic success has long been anchored in its vertically integrated supply chain, a system that delivers cost leadership through centralized procurement, standardized production, and scale efficiency. Replicating this model overseas, however, required a fundamental redesign.

The obstacles were substantial. Shipping containers often faced extreme temperature and humidity conditions exceeding 70 degrees Celsius. In parts of Southeast Asia, transporting goods over short distances could take an entire day. Regulatory complexity added further friction, with varying food safety standards and certification regimes, including the European Union’s extensive pesticide residue requirements.

To address these challenges, Mixue initiated a multi-layered restructuring strategy:

1. Localized Warehousing and Distribution: The company has established seven self-operated warehouses across four Southeast Asian countries, totaling approximately 69,000 square meters. These facilities serve as regional hubs, reducing delivery times and improving supply responsiveness.

2. Upstream Integration and Sourcing Control: Mixue is expanding production capacity within China, including facilities in Hainan, to support overseas demand. At the same time, it is pursuing upstream sourcing strategies, such as planned coffee bean investments in Brazil, to stabilize supply and control quality. This approach mirrors strategies adopted by peers that have localized key raw materials to secure cost and quality advantages.

3. Partnerships with Specialized Logistics Providers: To address last-mile complexity, Mixue works with established logistics partners capable of delivering consistent service standards across diverse geographies. This hybrid model combines centralized oversight with localized execution.

Together, these efforts aim to recreate abroad the cost efficiency and reliability that underpin Mixue’s domestic success.

III. Localization Beyond Products: Building Organizational Depth

While supply chains form the structural backbone of globalization, long-term success depends equally on localization at the organizational level.

1. Market-Specific Adaptation: In Malaysia, Mixue introduced regionally tailored flavors such as lemon mint ice cream. In Thailand, store designs incorporate localized branding elements, including gold-accented versions of the Snow King mascot. In Vietnam, store layouts were modified to include seating and study-friendly environments near universities.

2. Localized Talent and Governance: More than 96 percent of employees in Mixue’s Indonesian operations are local hires, with key management positions increasingly filled by domestic professionals. The company is implementing localized performance evaluation systems to support long-term talent development and reduce dependence on expatriate leadership.

3. Compliance and Intellectual Property Protection: Recognizing regulatory risk, Mixue established dedicated teams as early as 2021 to manage trademark registration and intellectual property protection across international markets, reducing exposure to legal and operational disruptions.

IV. The Next Test: Profitability and Long-Term Viability

Despite its expansive footprint, overseas operations currently contribute only about 5 percent of Mixue’s total revenue. Significant upfront investment, coupled with rising operational complexity, means profitability remains a critical test.

Future success will depend on two core factors:

1. Sustainable Unit Economics: Improving single-store performance through better site selection, stabilized supply chains, and disciplined franchise management will be essential to restoring confidence among franchisees and investors alike.

2. Monetizing Supply Chain Advantages: The ultimate test lies in converting supply chain scale into measurable cost advantages that can be sustained across markets, reinforcing Mixue’s value-for-money positioning against both local and international competitors.

Conclusion

Mixue Ice Cream & Tea’s global expansion reflects a broader evolution among Chinese consumer brands moving from rapid internationalization to long-term capability building. What began as an aggressive push for market presence is maturing into a strategy centered on supply chain depth, organizational resilience, and localized execution.

This transition—from scale-driven expansion to systems-driven growth—defines the company’s current phase. Its success or failure will not only shape Mixue’s global trajectory but also offer a blueprint for how Chinese consumer brands can pursue sustainable globalization in an increasingly complex and competitive environment.