Two Westerners Went to Singapore to Find Tea; TWG Tea Steps Out of the East and Into the World

 

 

Even though tea consumption and production in Asia are relatively large, tea brands are quite lacking in international recognition. Two Westerners went to Singapore to find tea and founded a brand, hoping to turn this situation around.

 

Moroccan-born Frenchman Taha Bouqdib, as well as American Maranda Barnes, founded TWG Tea in 2008, and the two hoped to bring the world a black tea brand from Asia.

 

In May of this year, in Leicester Square, the area of London known for its theaters and restaurants, TWG Tea opened a 653 sq m flagship store, with walls decorated in the yellow used in its trademark, and around 800 different products in the store, mainly black teas. An adjoining tea house offers teas and desserts, adding another layer to the upscale atmosphere.

 

 

This flagship store is precisely the spearhead of TWG Tea's push into the global market; half of the buyers come from outside the UK, and 3,000-4,000 people visit every weekend. For example, a Mexican woman in her 30s was very impressed by the items in the store and also planned to take several products home.

 

A Bold Move Into the UK, Where Black Tea Culture Runs Deep

 

TWG Tea boldly entered the UK, where afternoon tea culture runs deep, and opened 2 stores in the country; it believes that setting up boutique stores at important tourist attractions helps raise its global profile.

 

The reason Singapore was originally chosen as the base is that Singapore is close to major tea producers and has an active trading economy. Its teas are produced in India, Sri Lanka, Nepal, Myanmar, China and other countries, while blending and packaging are carried out in Singapore. In addition, Singapore is also a place where it is easy to gather information and handle business.

 

Advertisement

 

TWG expanded to Japan in 2010, then to China and Southeast Asia, and currently has 70 tea houses and stores in 19 countries, mainly in Asia. The stores are generally located in upscale areas, such as Ginza and Marunouchi in Tokyo. The piles of yellow tea tins in the stores are also an important attraction.

 

TWG directly handles sales in Singapore, China, Hong Kong, China and Taiwan, China, and in these 4 places alone, sales last year reached as high as 65.3 million USD. TWG has not disclosed its global sales figures.

 

Ten years after its founding, TWG plans to further expand its overseas markets, especially Europe and North America. Since 2009, TWG has had a location in the UK luxury department store Harrods; now, TWG has determined that the time is ripe, decided to open 2 standalone stores in London, and plans to open another 1-2 stores this year. At the same time, it also plans to enter France and the Netherlands within 3 years.

 

The Secret to Rapid Growth

 

In addition to its abundant mid-priced products, TWG's rapid growth can also be attributed to its marketing strategy, namely designing packaging and tea houses from a luxury perspective.

 

Advertisement

 

Bouqdib's goal is to provide customers with a high-quality yet affordable experience and products. He said, "For less than 10 USD, you can become our customer. Our niche is targeting customers looking for fine food and a wonderful experience."

 

Black tea is deeply rooted in British and European culture, and the market is also very crowded; the UK research company Euromonitor International points out that competition between Lipton (part of the Unilever group, with the highest market share) and Twinings (second in market share) is extremely fierce. But Bouqdib believes that Asia, with its profound tea culture and expertise, is indeed capable of competing in such an environment.

 

The challenge lies in maintaining growth and quality at the same time. In this regard, TWG opened the TWG Tea Research Center in Singapore last month to provide training in tea tasting, boutique service and communication for more than 3,000 employees worldwide.

 

Barnes, who leads corporate communications and business development, said, "As we continue to expand in the UK, Japan, Taiwan, China and the UAE market, and step into new markets such as India and Qatar, the tea research center will also help maintain our long-term growth."

 

Advertisement

 

TWG's goal is to enter every major city in the world within the next 10 years.