Indeed, many companies actually make money with sub-brands and then use those earnings to subsidize their main brand.
And the model Xu Musen imitated was naturally Milky Snow Ice City.
As a Returner, Xu Musen knew very well that in a few years, a major event would take place worldwide, followed by a significant economic downturn and consumer downgrading.
Many luxury brands wouldn't survive.
Tea shops would close one after another, but Snow King thrived during those years, simply because it was cheap.
If the price is low enough, sincerity becomes the ultimate killer move.
Nowadays, the average price of milk tea products is around six yuan, but Snow King's two-yuan ice cream and three-yuan lemonade, it's safe to say, were ruthlessly competitive!
Xu Musen essentially copied Snow King's strategy verbatim.
One goes high-end, the other offers value for money.
No matter how the market changes in the future, his base would remain stable.