Luckin Coffee Case Presentation

Thank you for your recognition. We have collaborated with over 10,000 enterprises/individuals. Case Study: Luckin Coffee

Luckin Coffee (English name: luckin coffee, abbreviated as "Luckin"), founded in 2017, is a Chinese coffee chain brand headquartered in Xiamen. It was established by Charles Zhengyao Lu, founder of CAR Inc., and Jenny Zhiya Qian, COO of CAR Inc. Below is a detailed introduction to Luckin Coffee:

**Development History**

- **Startup Phase**: In October 2017, Luckin Coffee opened its first store in Beijing's Galaxy SOHO, commencing trial operations. Subsequently, through rapid store expansion, substantial price subsidies, celebrity endorsements, and high-profile promotional campaigns, it quickly expanded.

- **IPO and Expansion**: In May 2019, Luckin Coffee successfully listed on NASDAQ, taking only 18 months from founding to ringing the bell, setting a global record for the fastest IPO. By the end of that year, the number of directly operated stores reached 4,507.

- **As of June 5, 2023**, Luckin Coffee's store count exceeded 10,000, making it the first coffee chain brand in China to surpass this milestone. In 2023, its total net revenue reached 24.903 billion RMB, surpassing Starbucks China in annual sales scale for the first time, becoming the largest coffee chain brand in the Chinese market.

**Business Model**

- **Market Positioning and Target Audience**: Luckin Coffee focuses on "democratizing coffee," targeting urban white-collar workers and young consumers, emphasizing affordability and convenience.

- **New Retail Model Integrating Online and Offline**: Adopting an "APP + pickup store" model, users place orders online and pick up in-store or opt for delivery. Pickup stores account for over 90%, reducing operational costs and rapidly penetrating high-traffic areas like office buildings and residential communities.

- **Data-Driven Operations**: Leveraging big data to analyze consumer habits, it reverse-engineers product offerings and builds private traffic through its APP and mini-programs to boost repurchase rates.

- **Products and Supply Chain**: Centered on the "big latte" concept, it introduces milk-based and tea-based coffee tailored to Chinese tastes. Through global sourcing and self-built factories, it has established a nationwide supply chain network to reduce costs.

**Product Innovation**

- **Collaborative Products**: Through partnerships with renowned brands like Moutai and Tom and Jerry, Luckin Coffee launched new products such as "Sauce-flavored Latte" and "Mascarpone Cheese Latte," attracting significant consumer attention.

- **New Product Launch Frequency**: Known for its high-frequency launches, Luckin Coffee introduced 119 new products in 2024 alone, averaging one every three days. Items like "Sai-flavored Latte" and "Mascarpone Cheese Latte" garnered widespread consumer interest.

**Future Outlook**

- **International Expansion**: Luckin Coffee has opened stores in Singapore, Hong Kong, Malaysia, and plans to enter the U.S. market, challenging global coffee giant Starbucks.

- **Continuous Innovation and Optimization**: With the vision to "create a world-class coffee brand and make Luckin a part of people's daily lives," it aims to continually enhance product and service quality, offering consumers more high-quality, affordable, and convenient coffee options.

In summary, Luckin Coffee has achieved remarkable success in China's coffee market through its unique business model, innovative product strategies, and efficient operations, consistently leading industry transformation.

**Contact Us**:

Email: heyaslove520@gmail.com

WhatsApp: Scan the QR code to add me.