Adopt differentiation strategies to make Yuchih Black Tea’s aroma spread to the world

With reference to the development of the black tea industry and its future vision in the past few years, the development stage and main activities of Yuchih Farmers' Association are demonstrated by the development value chain model of Sun Moon Lake Black Tea Industry:

Stage 1: Black Tea Industry Revitalization

In the decade after 921 Earthquake, Yuchih Farmers' Association mainly played the role of purchaser of tea, suppliers of production materials and promoters of black tea cultivation, while their primary goals are ensuring price stability and protecting farmers’ rights and interests

Stage 2: Sun Moon Lake Black Tea Standardization & Channel Development

From 2012 to 2016, Yuchih Farmers' Association adopted differentiation strategies, planning different products and building hierarchical marketing channel in accordance with different customers’ demands. For example, they set up "black tea shop" at the Sun Moon Lake attractions to serve freshly brewed tea as well as improved product exposure through the cross-industry alliance. As a result, the sales volume of Yuchih black tea was greatly increased, becoming the best representative of Sun Moon Lake black tea. Furthermore, in order to protect consumers’ rights and maximize farmers’ benefits, Yuchih Farmers' Association cooperating with the tea farmers with the innovative contractual farming system, purchasing the tea at a better price on the basis of the agreed contract ratio of two parties. On the other hand, Yuchih Farmers' Association also encourages tea farmers to improve tea quality continuously through holding the black tea evaluation contest.

Stage 3: Branding, chaining and internationalization

The third stage is basically based on three directions: branding, chaining, and internationalization. Firstly, Yuchih Farmers' Association does not have the proprietary right of the name ‘Sun Moon Lake Black Tea’ whereas it is public good. Therefore, branding will be an important step for ensuring the rights and interests of the Farmers' Association. Furthermore, in order to digest the increasing production of black tea, a series of internationalization works including overseas market and consumer behavior survey, branding and packaging design, and tea scenting technique developing will be launched, while cultivating international marketing and electronic talents to meet the future needs is also necessary.

Compared with 2011 (before the consultation), The revenue of Yuchih Farmers’ Association Economics Business has increased by 22% in 2017, and reached 64% growth rate in 2015.

After three years of planning, the Sun Moon Lake Black Tea Experience Museum built by Yuchih Farmers' Association with a total investment of 100 million NT dollars was launched since 2016. It is expected to combine the local black tea culture, cultural and creative energy and tourism resources to enrich the activities in the museum, through which the museum will become the must-visit attraction for black tea lovers and visitors and keep driving the development of local black tea industry in the future.