The Market Surveys And The Economic Development Planning Of Pu-erh Tea In China

Pu-erh tea is a symbolic product characteristic of the geographic condition in Yunnan province. It is made with leaves of a tea plant categorized as "broad leaf tea", which is grown in the special environment of Pu-erh region in Yunnan. The raw leaves are prepared through the process of shaping, ripening, separating, compressing and oxidizing and made into post-fermented tea. Typically Pu-erh tea has the resemblance of broad and fat leaves and reddish brown color. The brewed tea takes a bright orange color, with smooth and rich flavor. Pu-erh tea can be brewed multiple times before losing its flavor and the leaves remain a clear brownish color in the cup.The cultivation and trade of Pu-erh tea dates back to Tang and Song. Dynasties Various improvements have been made through the dynasties of Yuan, Ming, and Qing. In recent history, particularly from the beginning of this century, there is unprecedented market bloom and prosperity. However, great potential and profit space is yet to be explored. An upgraded market can be developed with the realization of its economic value. Meanwhile, the development of Pu-erh tea faces a great opportunity and some problems which cannot be ignored.This thesis outlined the general circumstance of the tea production areas, the present conditions of major factories, the market environment in which Pu-erh tea exists, and the current stage of brand development. The analysis is made through market surveys on topics, which includes consumer's preferences on tea types; the consumer's perceived quality of Pu-erh tea; the factors consumers take into account while making the purchase; the affordability of consumers; the economic conditions and risks of tea enterprises; the market outlook of the tea business.In the thesis, the Model of Porter's Five Forces was adapted to analyze the tea industry. The elaboration ranges from barriers to entry for potential competitors, the degree of competitiveness within the tea industry, the threat of substitute products, to the bargaining power of buyers and suppliers. On the industry level, the SWOT Method is also used to look at the internal strength within Pu-erh tea industry in relation to the external environment. The SWOT is a strategic illustration to identify the strengths, weaknesses, opportunities and threats for all the businesses in the Pu-erh tea industry.The summarized conclusions below are made based on comprehensive market surveys combinedwith a scientific business analysis.1. The domestic market of Pu-erh tea has gradually returned from contemplation to rationale. The pricing has returned to the value, with the supply and demand in equilibrium. Name brands are slowly being established while the consumers become mature. The general business industry is in a healthy and growing phrase2. Unsighted expansion in scale and size, and redundant promotional techniques will result in over-capacity and other problems. Suggested solutions are proposed in the thesis: consolidating resources, developing a regulated market, and increasing the entry barrier. Effectively doing so will benefit the growers, the factories and the wholesalers. The development of Pu-erh tea will depend on higher quality and higher price, improving the processing technology stays at the core of this approach.3. Product brand names are in much need of improvement, particularly well-known brands. Brand names promotion should emphasize long-term, consistent approaches with respect to market demand and market differentiation. Building well-known brands will increase customer loyalty and product awareness.4. Standardize mechanism should be established jointly by all enterprises in the tea business with concerted effort. The establishment would include a pricing mechanism, structured market mechanism, and credit rating mechanism. The government should enact an appraisal system to supervise and measure the businesses. With this system in place, the overall production and trading environment will continue to improve, and small workshops will phase out for poor production conditions, backward production craftsmanship and technology, inadequate quality, and safety control.5. The government should provide assistance to tea agriculture as part of the broad economic development planning. Enterprises should extend reaches internationally and promote export. Government, corporate, and academics will need to work in a concerted manner to promote the tea drinking culture. This will nurture a healthy and guided drinking habit for the general public, which in return will increase the customer base.6. Enterprises must improve human resources management and corporate strategic planning. Corporate, colleges, and research institutes can work in a co-operative way in research and tech support. Co-operation will make the long-term, sustainable growth possible.