A Tea Addict's Journal

One of the scams I’ve come across, as related to me by another tea seller, goes as follows.

You walk into a store with tins lining the wall. The tins are not labeled, and the store specializes in yancha. You go in, wanting to buy, say, shuixian. You ask for some. They ask you what price level of shuixian you want – since they have lots. You throw out a number, say 300 RMB/jin. They take one of the tins off the shelf, take out some tea, show it to you, and brew it for you. You sort of like it, but it’s not too great, so you ask them for something better. So they take the next tin out, and say “this is 400 RMB/jin”. You try it – it’s different from the last one, seems a bit better, but you’re not sure yet. So you try another one, this time from yet the next tin over. The tea is 500 RMB/jin now. It’s a bit similar to the first one, but not quite the same. Yancha, after all, share a lot of similar notes and are hard to differentiate just on visuals or taste alone. You end up settling for the 500 RMB/jin one (or any one of them) because it seems like it’s a good fit.

The trick, of course, is that there are only two kinds of teas in the store. They are stored in alternate tins in an ABABAB pattern. The 300/500 RMB ones were, say, tea A, while the 400/600 ones would be B. So when you try two that are just one level apart, they are indeed different. When you try ones that are two levels apart, well, by that time you’re on your third tea, and it’s been an hour since you tried the first one. You don’t remember it all that well anymore, and by manipulating some of the brewing parameters, the vendor can easily make it so that you think you’re drinking a similar, but different tea. Besides, we all know that more expensive wines taste better, so the same should apply for tea.

That’s not why I wrote about this scam, of course, although in and of itself it’s a cautionary tale of buying tea. One of the things in hster’s post that I linked to two days ago is that one should avoid Western reseller. There’s a good reason for that – because you can be an unwitting victim of the above-mentioned scam.

There are generally three ways a Western hemisphere based vendor can get their tea for sale. One is to go directly and source it – either from wholesale markets or resellers based in Asia, which is probably the most common way, or buy from farmers in the area, which probably also happens but less often than you think. The vendors can also buy from consolidators/wholesalers based in the West as well, with SpecialTeas (now Teavana…) and that type of thing. In that case, you’re basically buying teas for a markup for no good reason. The last is that they have some special connections for some reason, such as Guang of Hou De, who, from what I understand, has family members who are tea farmers. There aren’t too many of those around. This above list excludes those who are based in Asia but primarily sell to a Western audience, although for the most part, they are also just falling into the first category – someone like Jing tea shop in Guangzhou is basically buying teas from the Guangzhou market and then selling it to you at a markup.

What’s going on though, is that for those who are selling in the West, unless they take frequent trips to Asia or have some special connections, are generally just buying from some wholesaler and reselling said tea to you. The markup can be slight, or it can be very heavy. The problem with tea, and it’s the problem that enables the scam that I talked about earlier, is that tea is not labeled and is remarkably difficult to judge if you’re not in the right frame of mind. Let’s say you buy two tieguanyin. One’s marked at $15/100g, and has an interesting description. The other is marked at $25/100g, and has a breathless description. The pictures, of course, don’t tell you all that much, as they’re all about the same – some rolled, green leaves. You try them…. and then, unless you happen to compare them side by side, would you really know the difference? Is it going to be that obvious? What is the $15/100g’s seller’s markup is 100%, while the $25/100g’s is 400%, both of whom sourced from the same dealer? In other words – the more “expensive” tea is actually cheaper originally, because the person you bought it from is selling it for more?

There are endless possibilities for things such as this when you buy from Western based vendors. This is not to say that it is always a better deal to buy from Asian based ones, but at least there you’re more likely to run into unique things that other sellers aren’t selling – each local market is indeed a little different, and will offer you things that others can’t find. I even wonder if one might have better luck buying oolongs off Taobao – I haven’t experimented widely there, but even that could be a better deal than buying a “monkey picked” tieguanyin from online store X.

I’m not trying to say that every single Western based vendor is going to be terrible. By all means, if you find a tea you like from a certain vendor, then it’s perfectly fine to frequent that shop, but knowing full well that there’s always the possibility of a cheaper, better alternative out there. That’s why I have always advocated not getting sucked into buying from one vendor exclusively, regardless of what they have done for you in the past, and also to experiment widely in both providers and also the range of possible teas out there. This is true not just for us consumers, but also even for the tea vendors, who sometimes seem to form exclusive relationships with their Asian providers. That is also a dangerous path – one which can lead one’s customers to drink lots of overpriced, bad teas. Life’s too short for that.

Lew Perin, maintainer of Babelcarp and, I think, longtime reader of this blog, asked me a few weeks ago about a curious cake he saw on Taobao. His question was basically “does anyone actually buy these things? And are they that stupid?”. The cake in question, in case you’re wondering, is currently priced at 3888 RMB (although at the time I think it was 9999, if member serves). The tea is supposedly Youle mountain tea, produced in 2005, so maybe 7 years old or so. If we believe all of that, and if it’s truly old tree tea, the value of this cake maybe 1000 or so, but who knows. There are, after all, no pictures on the wrapper.

There are catches though, of course. The first is that this cake has slight religious meaning – it’s “made by Longchang Hao, produced by the Shaolin temple”. Yes, that Shaolin temple (which also explains the yellowness). What’s better, I found a cake that is similar, only with the signature of the abbot of the Shaolin temple, and this one was selling for 99999 RMB.

Back to Lew’s original question – why do these things exist, and who’s buying them?

I think the simple answer is – gift, gift, and gift. Basically, these things exist as gifts for the high and mighty of the Chinese bureaucracy and business world. Now, this cake is a little “special” because of its religious meaning, perhaps, but one doesn’t need to look very far or hard on Taobao to find similarly priced cakes that aren’t made by the Shaolin temple. Basically, these things are used as gifts to grease the wheels of business. The way it used to work, of course, was through gifts of cash. That ship, however, has sailed. Nowadays, gifts of cash are often refused, because it’s too obvious and hard to hide. Conspicuous gifts of luxury are often not that impressive for the official who already has all the latest watches and bags. So, enter tea and other rare things.

A friend in Dongguan recently described it to me like this – these days, those looking for gifts don’t just want anything expensive. After all, they can buy it themselves. These days, they want something unique, something that other people don’t have. Roughly following Bourdieu’s ideas of taste and cultural capital, in a society where an increasing number of people can afford Louis Vuitton bags and BMWs, it is important for those in the upper crust to find something that keeps them apart from the rest of the pack – something to distinguish themselves. Gifts of a rare, hard to find, and impossible to procure nature will easily do that.

So, in terms of tea, what we’re seeing these days is exactly a reproduction of this type of dynamic, driven by the demand of a market that is increasingly segmented into different layers. These days, even older teas such as Red Label are not that hard to find, if you have the money. Buying things like this is only a matter of wealth, maybe coupled with a few connections that help you find the “real” ones instead of the fakes. But if you have the ability to splash out 100k RMB, you can find something of that calibre without too much difficulty.

However, it is difficult to find certain kinds of things, such as, say, true current year first flush Lao Banzhang from old trees. Such teas, given the limited amount that is produced, tend to be secured long in advance by the powerful, and sent up as gifts to those even higher up. You can easily imagine, for example, of how a local administrator in Xishuangbanna looking for a promotion might use his pull to make sure the village head of Lao Banzhang saves him 10kg of these teas. He keeps maybe a little bit for himself, and then sends the rest up to people in the provincial party hierarchy, or maybe even in the national bureaucracy. The best tea, in other words, never see the market at all. The ones that see the market end up commanding high prices. Even if they’re not really worth all that much, their supposed rarity help the perceived value of these teas. In fact, they become Veblen goods and the gift-giver only needs to point out that “this tea costs 10000 RMB on the open market” and all of a sudden, everyone understands that this was a substantial gift. This explains why jinjunmei, an otherwise decent but utterly unremarkable black tea, was selling for something like 20k RMB per 500g.

Shops like the ones I visited in Dongguan are also, I think, largely driven by the gift market and the connoisseur market. They are related, but not identical. The shop owner was, according to the shop keeper anyway, a factory owner who was relatively successful. Having cashed out of his business, he turned to tea, but I think his business acumen still remains. He knows, for example, that in a city like Dongguan where there are many businesses vying for contracts as well as needing to make things run smoothly, there is an acute demand for gifts that help things moving. It was no surprise that in the area near where my hotel was, there were lots and lots of tea and alcohol shops selling high end tea as well as high end French cognac. These things are prized by the middle managers and that type of thing, so again, creates a market for this type of good.

My friend L in Beijing told me that his shop once received an order for 100 cakes of cooked puerh, each worth maybe 50 RMB. He was told to get the nicest looking packaging possible for the tea, and then deliver the goods to the client. The client then resold the teas in his upscale store for 10x the amount, no doubt ending up in people’s homes as gifts and told that these are nice aged puerh. My parents sometimes get things like that from friends visiting, and they are almost always very mediocre (or worse) cakes that I wouldn’t even want to try.

So if you visit major Chinese cities and pass by teashops near your hotel and are floored by the crazy pricetags you see, it’s not because the Chinese love their tea so much that prices are insane, but because they need to show the gift-receiver that they paid good money for such things. Skip those stores and head to the wholesale market instead.