The bubble tea craze has taken the world by storm since the 90s. It has continued to do so in the last 2 decades and saw a resurgent in recent years. One of the big names that have been building up a strong customer base in Malaysia is Daboba.
Staying ahead with the trend
Boba or Bubble tea beverages have huge business potential. Daboba was developed by a group of bubble tea enthusiasts with their rich experience from Taiwan (where the whole bubble tea craze was), it has since grown to become a popular and household name for some of the most unique items in their menu. Their Roasted Brown Sugar drinks and their Yogurt series have already built strong affiliations with its customers across the country.
What do our experts say?
The bubble tea market is very strong around the region. It is the same with the Malaysian industry with a lot of big brands like Chatime, Tealive and Xin Fung Tang. Daboba has a lot of potentials to grow but the challenge is to keep up with the pace of competition of the current players and new entrants. It must be noted also that this market has always been revolving and very active.
- Brand Reputation – Strong but will still need to grow.
- Initial Capital – You will need to start with RM350,000
- Franchising fees: RM350,000
- Royalty fee: 6% from monthly total sales
- Return on Investment – This is one business that you will need to sustain for at least 2 years.
- Location – Shopping malls (mostly taken) or stand-alone shops.
- Customer Segment – Millennials and Instagrammers
The Final Word
There is no easy way to put this. Entering the bubble tea market can be extremely challenging. If you have the funds to start with an established brand like Daboba, half of your battle is won. Starting a brand on your own in the red ocean will not be viable at all. However, it must be noted that there are many brands that are also competing in this crowded market. You definitely need funds to sustain operations for the first few years. The market is tough, but it is not impossible.