Bubble Tea Price War Brews, Threatens Thousands of Shops

China’s massive bubble tea market is boiling over. Fierce price competition now threatens to push thousands of shops out of business. The industry has annual sales worth about 370 billion yuan ($54.2 billion). But a costly battle for customers is squeezing profits dry. This situation is an example of "involution," a term describing intense competition that yields little real growth. It is a sharp warning for investors. Many hope to get rich quickly in China's fast-moving consumer sectors. These markets often have rapid boom-and-bust cycles. "Bubble tea is a dynamic market, and it is never easy to make money," one industry observer said. The current price war makes it even harder for smaller businesses to survive.