Global Retail Alliance
info@gra.world
  • Login
  • Register
  • Newsletter
  • Virtual Library
  • Choose your country
    • Australia
    • Brazil
    • China
    • Poland
    • Latin America
    • Middle East
GRAGRA
  • Home
  • Membership
    • Silver
    • Gold
    • Platinum
  • Event
  • News
  • Retail Tour
    • Our Tours
    • Europe Retail Tour
    • Retail Tour – New York
    • Retail Tour – Düsseldorf
  • Contact
  • Home
  • Membership
    • Silver
    • Gold
    • Platinum
  • Event
  • News
  • Retail Tour
    • Our Tours
    • Europe Retail Tour
    • Retail Tour – New York
    • Retail Tour – Düsseldorf
  • Contact

Retail News

  • Home
  • Retail News
  • Luckin Coffee wants to beat Starbucks in China

Luckin Coffee wants to beat Starbucks in China

  • Categories Retail News, Top News
  • Date January 3, 2019
  • Comments 2 comments

After barely a year in business, Luckin Coffee is challenging Starbucks in one of the US coffee giant’s top markets.

About 2,000 Luckin outlets have sprung up across China over the last year. That includes a store in Beijing’s Forbidden City, the historic cultural site from which Starbucks was famously evicted more than a decade ago.
Luckin plans to have 4,500 outlets by the end of 2019, which would take it ahead of Starbucks to become China’s biggest coffee chain.
The rapid of ascent of Luckin to challenge the US chain shows how Chinese upstarts are increasingly rivaling Western brands in one of the world’s top consumer markets.
While both serve coffee, the similarities largely end there. Unlike Starbucks’ trademark coffee shops, most of Luckin’s outlets are tiny booths in out of the way spots that take orders online for both delivery and pickup.
More important, Luckin has placed technology at the heart of its business from the start. Its outlets don’t accept cash, instead customers can only pay through the Luckin app, which offers loyalty bonuses.
China is Starbucks’ second biggest market after the United States. With around 3,000 stores across the country, it’s still bigger than Luckin. Starbucks plans to more than double that number by the end of 2022. But in June, the company reported a sudden slowdown in growth in China. One of the things it blamed was increasing competition, which analysts interpreted as a reference to Luckin.
There is a growing sense of rivalry between Luckin and Starbucks. In May, Luckin sued the Seattle-based company, claiming it had unfairly monopolized the market. In response, Starbucks told Chinese state media: “We welcome orderly competition, mutual promotion, continuous innovation, continuous improvement of quality and service, and creating real value for Chinese consumers.”
Starbucks is now fighting back. In August, it teamed up with Alibaba, China’s largest e-commerce company, to launch home delivery services. A month later, Luckin announced its own tie-up with another major Chinese internet company, Tencent.
Yuwan Hu, an analyst at Daxue Consulting in Shanghai, said that competition from Luckin is also prompting Starbucks to go more upmarket by focusing more on its Reserve brand in China. The outlets offer consumers more premium coffee options in a larger, more luxurious retail space.
Luckin is focused on competing on price, according to Hu. The company promotes discounts on Tencent’s popular social network, WeChat, and its coffee is generally cheaper than Starbucks’.
Source: CNN Business
  • Share:
gsiino

Previous post

Cartier’s Modern Retail Vision Takes Shape on Bond Street
January 3, 2019

Next post

Home Bargains announces “Quiet Hour” for customers with autism
January 4, 2019

You may also like

mangoteen
Mango Teen opens new store in Barcelona
27 July, 2022
solana
Crypto project Solana is opening a store in NYC. Take a look inside
27 July, 2022
Senza-titolo-2
Co-op extends robot deliveries to Bedford
25 July, 2022

    2 Comments

  1. Nick
    January 2, 2020
    Reply

    Increase in coffee consumption also influences China’s production, in particular Yunnan.

  2. Nick
    January 2, 2020
    Reply

    Now Luckin Coffee is everywhere, their model of delivery store with max 2 tables (see China’s coffee article, allows them to blitz expand at cheaper costs. However, hard to say if their strategy of spamming users with coupons will allow them enough fidelity to end up selling coffee with sufficient margins to be overall profitable.

Leave A Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search News:

News category:

News Archive:

Last News:

Mango Teen opens new store in Barcelona
27Jul2022
Crypto project Solana is opening a store in NYC. Take a look inside
27Jul2022
Co-op extends robot deliveries to Bedford
25Jul2022
Health deal shows how Amazon keeps ahead of regulators and rivals
22Jul2022
Retail Media Arms for Walmart and Kohl’s Get Major Boost
22Jul2022

Twitter:

GRA_World Follow

An association made up and dedicated to the retail industry world's leading companies. Become a member today!

Gra_World
Retweet on Twitter GRA_World Retweeted
meshaalbomairh Meshaal Bin Omairh @meshaalbomairh ·
19 May

Very happy to announce that I am now a member of the GRA, one of the world’s most important associations for #retail industry leaders.
يسعدني جدًا أن أعلن أنني أصبحت عضوًا في GRA ، وهي واحدة من أهم الجمعيات في العالم لقادة صناعة البيع بالتجزئة: https://twitter.com/Gra_World/status/1526975525411033089

gra_world GRA_World @gra_world ·
20 May

🚀Los invitamos al próximo #webinar #GRA donde un panel de líderes de #Latinoamerica van a compartir tendencias, experiencia y el futuro de #Marketplaces✍🏻: https://bit.ly/3yNggfI

Load More...

© 2022 Global Retail Alliance | info@gra.world | Privacy Policy