Journal of Tea Science Research, 2024, Vol.14, No.2, 112-122 http://hortherbpublisher.com/index.php/jtsr 118 designed to protect consumers but can also pose significant challenges for manufacturers looking to innovate and introduce next-generation tea beverages. 5.2 Opportunities in regulatory changes Despite the challenges, regulatory changes can also present opportunities for the tea beverage industry. For example, the increasing recognition of the health benefits of bioactive compounds found in next-generation teas could lead to more favorable regulations that allow for specific health claims on product labels (Debnath et al., 2021). Additionally, harmonization of regulations across different regions could simplify the process of international trade, making it easier for manufacturers to expand their markets. The shift towards more transparent and science-based regulatory frameworks can also encourage innovation by providing clear guidelines on the use of new ingredients and processing methods (Lovrek et al., 2011). 5.3 Challenges in compliance and international trade Compliance with diverse and often stringent regulations remains a significant challenge for the tea beverage industry. Manufacturers must navigate a labyrinth of requirements that can vary not only by country but also by region within countries. This complexity can lead to increased costs and delays in bringing new products to market (Nurmilah and Utama, 2022). Furthermore, the lack of harmonization in regulations can create barriers to international trade, as products that meet the standards in one region may not be compliant in another. This is particularly challenging for next-generation tea beverages that incorporate novel ingredients and processing methods, which may not be covered by existing regulations (Lovrek et al., 2011). The need for continuous monitoring and adaptation to regulatory changes adds another layer of complexity, requiring significant resources and expertise. 6 Case Studies in Innovation 6.1 Innovative products that reshaped the market Innovative products have played a crucial role in reshaping the tea market. For instance, the Japanese tea industry has transformed the perception of green tea from a commodity to a branded luxury good through technological innovations and strategic marketing. This repositioning has allowed Japanese green tea to penetrate international markets and appeal to a luxury segment of consumers (Xia and Donzé, 2023). Another example is the success of "Sexy Tea", a Chinese brand that integrated traditional Chinese aesthetics into its product innovation and marketing strategies. This approach has significantly enhanced the brand's market share and consumer recognition by leveraging cultural elements to create a unique and appealing brand image (Da et al., 2023). 6.2 Start-ups and new business models in tea industry Start-ups and new business models have also contributed to the dynamic evolution of the tea industry. Nayuki, for example, has utilized innovative marketing strategies, such as the "third space" concept and a close-loop management system via e-commerce platforms, to distinguish itself in a competitive market. These strategies have enabled Nayuki to attract a broad customer base and secure a significant market position (Lu, 2022). In India, small tea growers have adopted branding strategies to market fresh tea leaves as high-quality, differentiated products rather than bulk commodities. This shift has improved market competitiveness and increased the earnings of smallholders by tapping into new consumer markets and enhancing product value through branding and marketing support (Raj, 2021). 6.3 Lessons learned from failed product launches Learning from failed product launches is essential for future success. For example, some products failed to gain market traction due to a lack of understanding of consumer preferences and market conditions. The case of PT. Sinar Sosro Medan in Indonesia illustrates this point. Despite efforts in product innovation, the company faced challenges due to insufficient market research and a mismatch between product offerings and consumer expectations, leading to limited consumer interest and market performance (Sinaga et al., 2021). Another example is the experience of Nayuki, which, despite having high-quality products, struggled with imperfect marketing strategies compared to competitors like Luckin Coffee. The need for continuous innovation in marketing
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