Home World News Luckin Coffee, China’s No. 1 coffee company, changes ownership and overtakes Starbucks

Luckin Coffee, China’s No. 1 coffee company, changes ownership and overtakes Starbucks

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Luckin Coffee, China’s No. 1 coffee company, changes ownership and overtakes Starbucks

Chinese local brand Luckincoffee(Luckin Coffee) Yesterday’s financial report showed that total sales in the Chinese market in 2023 have exceededstarbucks(Starbucks) has become China’s “No. 1 Coffee Brother” mainly because of its rapid store opening, low price strategy and innovative marketing.

According to media reports such as Jimian News, Luckin Coffee released its financial reports for the fourth quarter and full year of 2023 on the 23rd. Its total sales in the Chinese market were RMB 24.86 billion (about US$3.45 billion), a year-on-year increase. 87.3%, surpassing Starbucks’ US$3.16 billion, becoming the largest coffee chain in China.

According to reports, Luckin Coffee’s sales have grown significantly, surpassing Starbucks, mainly due to rapid store expansion, low price strategy and innovative marketing.

The financial report shows that by the end of 2023, Luckin will have opened 8,034 net new stores throughout the year, an annual increase of 97.8%, and the number of stores in China has reached 16,218, of which self-operated stores account for 10,000 stores. There have been more than. For the first time, 10,598 reached 5,620 combined stores.

After China’s economy hit a recession, Luckin Coffee adopted a low-price strategy to capture the market. In May last year, it launched a promotion of RMB 9.9 for a cup of coffee. It gained considerable market share. Independent coffee shops did not have the capital to focus on medium to high prices, which led to store closures.

In addition, Luckin Coffee launched 102 new products in 2023, sold more than 2 billion pieces, and produced more than 1.9 billion cups of ready-made beverages. By the end of 2023, sales of 8 brands have exceeded 100 million, including Moutai Sauce Latte, Coconut Cloud Latte, Velvet Latte, etc., which have the highest repurchase rate. This means that Luckin’s hot-selling strategy is still very effective, relying on the digital-based innovation system behind it.

However, Luckin’s performance is improving in the fourth quarter of last yearBenefitIs in decline and is facing a bottleneck period.

The report mentions that the current price range for a cup of coffee is 9.9 yuan. At present, the promotional activities are decreasing, and there are only 10 products that can use the 9.9 yuan coupon in the app.

Luckin Coffee’s “9.9 Yuan Event Adjustment” has sparked heated discussions on the Internet. A person close to Luckin Coffee revealed that Luckin Coffee’s price strategy has continued and the “9.9 Yuan Event” will continue.

China.com quoted food industry analyst Zhu Danpeng as saying that Ruixing Coffee’s emphasis on the “9.9 Yuan Campaign” will help it continue to expand market share and further consolidate its leading advantage; This will also help in further increasing the number of users and increasing the frequency of user purchases.

Guo Jinyi, Chairman of Luckin Coffee, said that in 2024, facing the challenges of fierce competition in China’s coffee industry and uncertain factors such as seasonal factors, Luckin Coffee’s future performance may be affected to a certain extent, but it will still be Will be strongly promoted. Current pricing and development strategies to ensure business growth and market share.

China

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