How Luckin Coffee contributes to the Chinese coffee market

How Luckin Coffee contributes to the Chinese coffee market

The size of the market is anticipated to increase to as much as USD 145 billion (RMB 1 trillion) by 2025, making coffee the next big thing in China. The US coffee giant Starbucks opened 3,600 locations across China in the last ten years, greatly surpassing all other coffee chains in the country. Luckin coffee, a local Chinese competitor, recently made its debut, which has changed the landscape.

1. Different Stores

In May 2018, Luckin revealed their “Any Time” approach. The strategy takes advantage of the Internet’s strength and innovative “new retail” ideas to enable unrivaled client pleasure. According to the quality of services provided, each luckin coffee shop is created using one of four different themes. Each of the four theme categories—ELITE, RELAX, PICKUP, and KITCHEN—is focused on a different type of customer experience. 

Flagship ELITE and RELAX locations are created to address consumers’ desires for offline social interaction, while PICKUP stores will meet the needs of business travelers looking for a fast cup of coffee. Contrarily, KITCHEN stores are created specifically for delivery services.

2. Unmatched Practicality

Luckin stands out from rival brands because to its rapid delivery service, which has wait times of just 16 minutes on average. The business promises delivery in major cities in 18 minutes or less with in-app ordering. Customers can now order luckin coffee goods through Meituan’s delivery app, Meituan Waimai, thanks to a partnership between luckin and China’s largest food delivery company. Customers in the area can get to the closest Luckin’s store in only five minutes.

In addition, Luckin has simplified and made very instantaneous the process of buying coffee. A customer can pick up the coffee that has already been pre-ordered via the Luckin coffee shop’s smartphone app by just scanning a QR code when they enter the establishment. 

3. High Standard

Luckin Coffee’s characteristic paper cup, which has a white deer imprinted on a blue background, has earned the brand the moniker “Little Blue Cup” from Chinese internet users. Luckin placed a strong priority on its coffee’s superior quality together with a memorable brand. The company is dedicated to giving Chinese consumers a freshly roasted coffee consumption experience by using high-quality Arabica coffee beans and talented barista teams, two of which were World Barista Champion (WBC) regional champions of Italy and China. The International Institute of Coffee Tasters (lIAC) in Italy hosted the International Coffee Tasting 2018 in December, when the company’s coffee mix won the gold medal.

4. Blue Partner Alliance

In order to create the “Blue Partner” strategic alliance, luckin coffee inked agreements of strategic collaboration with six renowned providers of coffee accessories and equipment. The alliance consists of the coffee machine producers Schaerer and Franke, the syrup provider Fabbri 1905, the largest dairy cooperative in the world, Fonterra, the seller of coffee beans Mitsui & Co., and the expert coffee roaster Yeuan Yeou.

Given all of this innovation, Luckin seemed doomed to fail as China’s top coffee brand.