Q&A: How TWG built a luxury tea brand through word of mouth

The brand has 19 boutique locations around the world, including Japan, Thailand, Malaysia, Indonesia, Philippines, Hong Kong, UAE, the US, and the UK. TWG is also planning to open its first location in China, although it has yet to determine where. Despite this rapid expansion, TWG is relying on word-of-mouth to build its brand in new markets. Positioned as a luxury tea boutique, marketing efforts are tailored around packaging and service, according to co-founder Maranda Barnes.

What are TWG Tea’s plans for Asia?

TWG Tea is present in 42 countries [via distribution] around the world today, and as a global luxury brand established and based in Singapore, we feel that it is natural for TWG Tea to focus its expansion on Asia.

Each tea-producing country has distinct tastes and traditions that are a reflection of its culture. However, just as tastes evolve over time, so should traditions adapt with each new generation. TWG Tea plans to confirm and revolutionise the tea tastes and traditions of countries like Singapore, Japan, Thailand, Malaysia and Indonesia alongside local connoisseurs to reinstate traditions where they have been abandoned and reacquaint local tea lovers with their own teas, as well as to introduce them and a younger generation to exceptional teas from other countries through tea blends that are more contemporary.

We are also working towards global expansion, with openings of TWG Tea Salons & Boutiques in strategic capitals all over the world.

Which are your biggest markets in the region in terms of growth and market share?

Our biggest market in Asia today is Singapore, where we first started and now have eight TWG Tea Salons & Boutiques, followed by Thailand, where our teas are widely distributed to 5-star hotels and fine dining restaurants and where we will be opening a second Salon & Boutique very soon. We also just opened in Jakarta, which we foresee as one of our next most important market in Asia. TWG Tea’s presence in Asia has grown steadily over the last five years, with growth seen in cities like Manila and Kuala Lumpur, where there are plans to increase the number of stores in the coming years. We also intend to bring the brand into China once a favourable location has been secured.

What are your marketing plans in the region?

Word-of-mouth from our loyal customers has been our best strategy. TWG Tea has been very well received rather spontaneously worldwide. This has to do with the fact that TWG Tea was created as a luxury brand, not only from a branding or marketing perspective, but with an incredible attention to detail, from packaging that is on a par with the exquisite tea inside, to impeccable service. A lot of gourmet brands do not dare to bring their brand to the luxury level, preferring instead to remain mainstream. For us, it is the opposite. We know what our customers are looking for and that they are willing to pay a little bit more for a product of exceptional quality.

How much of TWG's revenues come from Asia?

Asia is TWG Tea’s primary market at the moment.

How much does the company spend on marketing in the region?

TWG Tea concentrates its efforts on PR activities rather than marketing, and all our partners across the world have the same strategy. 

Are you considering brand extensions?

TWG Tea’s main goal is to develop the finest luxury tea brand in the world and to offer the most exceptional teas. Our efforts are focused on sharing our passion and knowledge about exquisite teas from all over the world, and proving that a luxury tea brand founded and based in Asia can be sold in the trendiest shops in New York and Europe. We are very pleased to earn the appreciation of a growing number of satisfied customers worldwide.

How does TWG stack up against competitors?

TWG Tea is Asia’s first international luxury tea brand and has the largest tea list in the world with 800 different single estate harvests and exclusive blends. Since everyone in Asia is born with a proverbial cup of tea, we knew that it would be challenging creating a new luxury tea brand in Asia and, more importantly, to get Asians to embrace it as their own. The only way we were going to achieve that was by offering the very finest quality teas available, rare harvests, exquisite varieties of tea and exclusive blends. The rapid expansion of TWG Tea in the region—at the heart of the tea-producing regions of the world—is, for us, proof that we have succeeded in doing just that.

When is TWG launching its next campaign?

TWG Tea will soon be launching the 2013 Tea-infused Mooncake Collection in Singapore and Hong Kong. The collection will be revealed and available for pre-order in the coming weeks.