"Loss leader" — Phrase of the Week
China’s second largest milk tea brand launches a new product
Our phrase of the week is: "loss leader" (赔本赚吆喝 péiběn zhuàn yāohe)
Context
As summer temperatures rise across China, major tea brand Goodme (古茗茶饮) is making waves on social media with a surprisingly simple new product: a cup of iced water for just one yuan, aptly named the "One Yuan Ice Cup" (一元冰杯).
Initially focused on lower-tier cities, Goodme has expanded into higher-tier markets, while maintaining strength in second- and third-tier cities with competitive pricing.
This new product fits with the brand’s low-price strategy, but it’s more than a seasonal gimmick.
Sold only in-store, the 500ml iced water lures customers inside their shops. Once there, they’re tempted by other drinks, like Goodme’s new 2.5 yuan 'Fresh Iced Lemonade' (柠檬冰水), also launched for the summer months.
The One Yuan Ice Cup resonates with China’s price-sensitive young consumers and has viral appeal: it’s customisable, easily mixed with juice, fruit, or instant coffee.
Customers then share their creations on social media, turning this basic, low-cost drink into a free marketing tool for Goodme—boosting both brand awareness and in store traffic:
On the surface, it appears to be a loss leader, but in reality, it leverages the psychology of "since I'm already here, I might as well…"
Chances for customers who visit the store for a 1 Yuan Ice Cup to add a milk tea to their order increase significantly, when they take a glance at the menu.
表面上赔本赚吆喝，实际上玩的是“来都来了”的心理学。消费者为了1块钱冰水走进店里，抬头一看菜单，顺手带杯奶茶的概率直接拉满。
biǎomiàn shang péiběn zhuàn yāohe, shíjì shang wán de shì “lái dōu lái le” de xīnlǐxué. xiāofèizhě wèile yí kuài qián bīngshuǐ zǒu jìn diàn lǐ, táitóu yí kàn càidān, shùnshǒu dài bēi nǎichá de gàilǜ zhíjiē lā mǎn
And with that, we have our Sinica Phrase of the Week.
What it means
"Loss leader" (赔本赚吆喝) is a Chinese idiom which literally translates to “losing money to gain attention.”
It combines three words: "operating at a loss" (赔本), " earn" (赚), and "to hawk or shout" (吆喝).
The last word, “吆喝” (yāohe), is the traditional practice of vendors promoting their goods in bustling marketplaces to attract customers. This dates back to ancient times in China, often involving rhythmic or poetic chants, creating a lively atmosphere in the markets. Interestingly, the character “喝” in “吆喝” is the same character as in the verb "to drink" in Chinese (喝 hē). However, in this context, it's pronounced with a neutral tone, not a first tone, and is not related to the character for “water”.
In modern business language, it describes promotional tactics where companies offer products at a loss to draw in customers and enhance brand awareness, incurring short-term losses in exchange for long-term visibility and brand recognition.
For Goodme, the One Yuan Ice Cup entices customers in and increases the likelihood of additional purchases. In the intensely competitive milk tea market, this simple, low-cost item has become a powerful marketing tool.
It’s an effective "loss leader".
Andrew Methven is the author of RealTime Mandarin, a resource which helps you bridge the gap to real-world fluency in Mandarin, stay informed about China, and communicate with confidence—all through weekly immersion in real news. Subscribe for free here.
Read more about how this story is being discussed in the Chinese media in this week’s RealTime Mandarin.
