I was in Guangzhou last month. My readers would know that I have stopped buying Chinese tea in quantities every time I am in Guangzhou. I really have too much tea and I am happy with my stash.
I picked up some tea during this trip. I had purchased the tea few years ago and had left the tea with a tea shop buddy. My buddy was moving to a smaller shop and requested that I clear out my tea I had stored with him.
Here are some observations I had of Guangzhou and the Fangchun tea market during this trip.
The shopping malls were crowded even on weekdays. However, the make up of the shops have changed dramatically. Retail shops selling personal items from cosmetics, clothes and personal wear have been replaced by food related shops. There are more coffee and bubble tea shops, fancy pastries, dessert shops and more eateries. This change of shop front reflect the more astute spending character of the local shopper. They could buy many things online which offer wider and cheaper options. For food choices, these options are restricted that certain food taste best when eaten at the eateries itself.
This change is also indirectly reflective in the Fangchun tea markets. Chinese tea buyers have more choices and could even make price comparisons on the same product online. I was told that many tea dealers now conduct their tea purchases online without actually making a trip to Fangchun. Tea samples are now commonly delivered directly to the buyers. In turn, larger tea factories had also reduced their minimum per order limits for their dealers in Fangchun. With the tightening economy worldwide, there were hardly any tea speculators now at the tea markets. Shop rents have fallen and I found that bigger shops have reduced their shop and warehouse spaces to save costs; either relocating to a smaller shop or getting better discounts on their rent.
More significantly, the next generation of younger Chinese tea drinkers only make up a small number. They mainly drink coffee and bubble tea at malls and fancy cafes.
I foresee Fangchun tea markets will get smaller every year. There is less demand and many tea dealers' children are not interested in taking over their parents' tea business. The outlook for the traditional Chinese tea market is dim.
