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(Yicai) June 26 -- Chinese tea chain Naisnow, which ran up a deficit last year, has reported a sharp rise in orders last month thanks to the launch of a new range of healthy green drinks.
Naisnow posted a 35 percent surge in the average monthly orders per store in May from a year earlier, and same-store sales soared 28 percent, a manager at the Shenzhen-based firm said at a press conference yesterday.
During the recent five-day Labour Day holiday in May, some Naisnow stores saw their orders more than quadruple from the month before, the person said. And during this month's Dragon Boat Festival and Children’s Day, orders at a number of outlets surged 480 percent month on month.
Naisnow unveiled a new line of drinks, each of which uses at least three kinds of healthy, green ingredients, at the press event, in a clear sign that the company is embracing current wellness trends.
Since the end of last year, Naisnow has been actively expanding its use of ‘superfoods’ and has been updating its product lineup, according to the manager. Earlier this year it launched the world’s first light food and drink ‘green store’ in Shenzhen, which is a new concept offering teas, baked goods and light meals. So far, more than 30 of these Naisnow ‘green stores’ have opened in big cities such as Beijing, Shanghai, Guangzhou and Shenzhen.
Healthy teas have become a new trend this year. Leading brands, such as Heytea, have jumped on the bandwagon and are rolling out new products based on healthy plants such as kale. Sales of such products launched by the Shenzhen-based firm in July last year have now reached 3.5 million cups a month.
The new product lineup could herald a turnaround in Naisnow’s performance. Last year, the company racked up net losses of CNY919 million (USD128.4 million), mainly due to weaker consumer spending, the high cost of its direct sales model and stiff competition, according to the firm’s annual financial report released in March. Revenue dropped 4.7 percent to CNY4.9 billion (USD687 million).
Editor: Kim Taylor