The price of spring tea this year is much cheaper than in previous years, with prices in some producing areas reduced by more than one-third. Under the epidemic situation, there are too few tea merchants who can go up the mountain. In addition, the market has a strong wait-and-see atmosphere, which has further depressed the price of spring tea. The lowering of raw material prices means that tea merchants will reduce the cost of making tea. Many tea drinkers are beginning to be concerned about a question: Can high-end tea represented by famous mountains and ancient villages enter the era of 100 yuan? For new tea, price reduction is not a big problem. But it has been troublesome for inventories from the past few years. An increase in raw material prices can lead to an appreciation of inventory, and conversely, a decline in raw material prices can also lead to a depreciation of inventory. In the past two decades, the price of Maocha has been rising almost all the way. Even if it encountered the storm in 2007, it recovered in a short period of time. Moreover, at that time, there was no such huge inventory scale as now. Nowadays, tea merchants are generally in a dilemma. Lowering the price of raw materials and lowering the price of products will definitely boost sales, but this will also bring about the devaluation of inventory. If the money earned cannot exceed the depreciation of inventory, for tea merchants, they will lose money by selling tea. Not cutting prices seems to be the best way, but once the price of raw materials is reduced, the product will become profitable. Small tea merchants will take advantage of this opportunity to skyrocket. After all, there are countless companies providing OEM services on the tea mountain. Inventory pressure is a matter for large tea merchants, while small tea merchants often have little or no pressure. This is why it is said that it is difficult for a big ship to turn around. When small tea merchants process their products and bring them to the market, life for big tea merchants becomes even more difficult. Before such a thing happens, the big tea merchants must find a way to break out. If the price decline of high-end tea is the general trend, it will be a big trend for big tea companies. After accepting the reality of shrinking inventory, we must consider how to use relatively cheap raw materials to create products that can build the brand. Use cost-effective products to expand your market share and increase your brand influence. 2020 may be a year that cannot make money, but 2020 can be the starting point for the brand to take off.

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