ถอดกลยุทธ์ luckin Coffee ร้านกาแฟจากประเทศจีนที่ยอดขายแซง Starbucks | Torpenguin

Summary

This video explores the rise of Luckin Coffee in China, highlighting its initial success through a cost-leadership strategy that kept prices lower than competitors like Starbucks. Despite facing increased competition and market saturation, the brand is now expanding globally, aiming to reposition itself as a premium coffee brand. The challenges of shifting brand perception while retaining loyal customers are discussed, alongside insights on the importance of innovation and strategic planning in growing a business. The video offers valuable lessons for entrepreneurs navigating competitive markets.

Takeaways

• 😀 Luckin Coffee uses a technology-driven business model to reduce costs while maintaining product quality, particularly by cutting down on rent and labor expenses.
• 😀 Despite selling coffee at a lower price than competitors, Luckin Coffee achieves profitability through cost-effective labor practices and an optimized business model.
• 😀 The Chinese coffee market is becoming increasingly saturated, with new brands like Coty Coffee emerging and growing rapidly in just a few years.
• 😀 Luckin Coffee faces stiff competition as the market becomes more crowded, with both local and international brands entering the space.
• 😀 Luckin Coffee is expanding internationally, with plans to grow in Southeast Asia, including Singapore, and to enter markets like Saudi Arabia and Thailand.
• 😀 The company is trying to transition from a cost-leadership model to a premium brand, aiming to compete with global giants like Starbucks.
• 😀 This shift in positioning is challenging because Luckin’s brand has been historically associated with affordable prices and frequent promotions.
• 😀 Luckin Coffee’s rapid growth and market dominance in China have led to new challenges in maintaining its leading position as competition intensifies.
• 😀 The business strategy emphasizes the importance of reducing operational costs, such as labor, without compromising on product quality or customer experience.
• 😀 As Luckin Coffee continues to expand, it faces the dual challenge of retaining loyal customers while attracting new ones in an increasingly competitive global market.

Q & A

What is the key to reducing costs for coffee businesses, as discussed in the script?

The key to reducing costs is not necessarily cutting product prices, but optimizing the business model using technology to enhance operational efficiency. This can help reduce overheads like rent and labor costs while maintaining product quality.

How does the cost structure of Lucking Coffee compare to its competitor, Kongjian Coffee?

Lucking Coffee has a lower cost structure, with a selling price of 24 yuan and labor costs around 4-5 yuan per unit. In comparison, Kongjian Coffee sells at 30 yuan but has a higher labor cost of 6 yuan per unit.

What significant challenge does Lucking Coffee face in the Chinese market?

Lucking Coffee faces the challenge of increasing competition as the market becomes saturated. More brands, such as Coty Coffee, are entering the market, making it difficult for Lucking Coffee to maintain its leadership position.

What strategic move is Lucking Coffee making to address the market saturation and competition?

Lucking Coffee is expanding internationally into markets like Singapore, Saudi Arabia, and Thailand. Additionally, they are working on transitioning from a cost-leadership business model to a premium brand positioning.

What is the primary challenge Lucking Coffee faces in repositioning as a premium brand?

The challenge is shifting public perception. Despite efforts to raise prices and improve brand image, Lucking Coffee is still seen as a budget-friendly brand. The task is to convince customers that it now offers premium-quality products while retaining its existing loyal base.

What role does technology play in optimizing business operations for coffee chains?

Technology can streamline operations by improving efficiency in areas like inventory management, customer service, and order processing. This helps reduce labor costs and other operational overheads, which can lead to higher profit margins.

What does the speaker mean by 'business model optimization' in the context of reducing costs?

Business model optimization refers to adjusting the structure and operations of the business to maximize efficiency. This could involve using technology for automation, reevaluating rent and store layout, or altering the product offerings to better meet customer needs without sacrificing quality.

What does the rise of brands like Coty Coffee indicate for the coffee market in China?

The rise of brands like Coty Coffee highlights the growing competition in the Chinese coffee market. It suggests that new brands can achieve rapid success and challenge established players like Lucking Coffee, particularly if they are able to innovate or differentiate themselves effectively.

What is the significance of Lucking Coffee’s expansion into Southeast Asia?

Lucking Coffee’s expansion into Southeast Asia, particularly Singapore, is a strategic move to diversify and grow its customer base beyond China. This helps the brand maintain its growth trajectory and mitigate the risks associated with market saturation in China.

How does Lucking Coffee plan to maintain its market dominance moving forward?

Lucking Coffee plans to maintain its market dominance by continuing its international expansion and transitioning to a premium brand positioning. This will involve elevating the quality of its offerings and altering customer perceptions of the brand.