(picture from Baidu invasion deleted)
text ▍ Chen Po
recent six months, as long as open Xiaohongshu, there will be a lot of grass sticks about Luckin's coconut latte.
In line with the mentality of "the earth does not explode, and Luckin does not take a holiday", Luckin is like opening up this year. In the past year, it has launched nearly 55 new products, especially the explosive raw coconut. Tie was so hot that it was urged by the entire network to ask Ruixing to go to Hainan to pick coconuts immediately.
This product not only made Luckin Coffee's hot search again, but also allowed them to finally achieve group profitability in May this year.
One
strong 6strong coffee!
Last weekend, I went to a friend’s office,When I wanted to order Starbucks, I found that the nearby store was not open, but the nearest Luckin Coffee was full of people. Out of curiosity, I walked into this Ruixing shop, and on the recommendation of the clerk, I ordered a cup of raw coconut latte that was rumored to be called "Luckin Coffee Ceiling" by many netizens. Don't say it tastes real. It's pretty good, but the most important thing about the taste is that it's not pure coffee, but milk tea coffee.
As a representative player of the current local coffee market, Luckin’s every move is always being followed by the public. Recently, there was news that “Luckin started to achieve the overall profitability of the group in May and completed this year’s annual goal ahead of schedule.”
When I heard the news, I was shocked. , After all, how beautiful Luckin was when it went public that year, and the series of negative events that occurred afterwards were bloody. The entire 2020 is Ruixing’s "Year of Mercury Retrograde". A series of signals such as financial fraud, dishonesty, stock price plummeting, store closures, board of directors fighting, and management's big exchange of blood are all showing people that Ruixing is true. It's about to be finished. But what I did not expect is that Ruixing, which has gone through many twists and turns, not only has not been completely finished, but has also become the first local coffee brand to achieve overall profitability.
Who on earth brought Ruixing back to life?
"A cup of poisonous coffee is broken. China Probable Stock This pot of porridge" is the evaluation of Luckin by everyone in the past.But Luckin is not actually a bad company. Luckin Coffee’s previous strategic play was very simple and extremely common. Isn’t it the first to quickly occupy the market by burning money, and wait until it has achieved a certain market leading position before raising the price. The material cost of a cup of coffee is usually about three or four yuan, including the cost of rent and labor, so as long as the price of a cup of coffee can exceed ten yuan, it can basically make a profit.
Now, Luckin is profitable because they are now competing with Starbucks for differentiation. Luckin Coffee has always stated that its target is Starbucks at the beginning of its establishment. Looking back now, this early strategy is not suitable for Luckin. It was not until Luckin's original chairman Lu Zhengyao finished class that the new CEO Guo Jin took Luckin on the right path of development.
After the exchange of blood, Luckin no longer insists on benchmarking Starbucks, but chooses to capture a group of non-Starbucks customers. It can be seen from Luckin’s out-of-stock hot product raw coconut latte, Luckin is now making a transformation of coffee, that is, coffee milk tea! Because Luckin is soberly aware that to sell coffee is to be a "wolf in sheep's clothing" to achieve profitability.
贰
strong6span2 strong and differentiated competition with Starbucks7 span8 _sp br11 strong span5 _span5 _span5 _span5 _span5 pMost people don't have the habit of drinking coffee, and real coffee lovers prefer to like more pure coffee brands. In China, there is a very special phenomenon, that is, the sales volume of milk tea is higher than that of any drink, and it is more popular in the market.
Luckin has also tried to make small deer tea and coffee strong, but the effect is not very good, but now it is not very good to combine the strong milk tea with _span 8span. Fortunately, its own coffee products have gradually become milk tea, which has accelerated Luckin's profitability process. The sales of the raw coconut series alone exceeded 10 million cups in a single month.
At present, most of Luckin Coffee’s drinks are based on a blend of milk tea and coffee, which not only has the aroma and refreshing effect of coffee, but is closer to the taste of milk tea. It is easy to capture young customers.
Under such a strategy of "selling milk tea under the title of coffee", Luckin Coffee immediately became popular among young consumers, and now this trend is getting bigger and bigger and launched More milk tea-based coffee immediately made Luckin and Starbucks different.
In addition, Luckin has other advantages,For example, the speed and number of stores opened. In the past two years, has exceeded 5,200 stores across the country as of June 2021. These shops are covered in office buildings in first- and second-tier cities. For small white-collar workers in these cities, a cup of Ruixing's coffee with the taste and cost-effectiveness is indeed a good choice for afternoon tea.
In addition, Luckin is also very good at commercial hype. After experiencing two years of hype, Luckin's coffee has not sold well before, but its popularity is huge. Moreover, Luckin also has a great advantage in terms of rent costs compared to Starbucks. Luckin's shops are basically not very large, so the relative rent is relatively cheap, while Starbucks mostly focuses on large shops, and basically the shops cover an area of more than 200 square meters.
Once the shop is big, the corresponding labor cost will rise, and usually almost two shop assistants in Ruixing Coffee shop can complete all the operations. With rent and labor costs under control, coupled with differentiated competition, it is entirely reasonable for Luckin Coffee to come back to life.
took the differentiated competition route with Starbucks and realized the headwind of Luckin Coffee. This shows that competing with others and stumbling in the areas of advantage of others will not always have very good results. If you want to win, you have to pass differentiated competition, then screen out different users, and provide products in a targeted manner. There is a greater chance of a major reversal. It is said that Luckin has already developed a more radical plan next,In the future, more stores may be opened across the country, and there may even be the possibility of entering overseas.
In general, during the time when Luckin and Starbucks were fighting each other, Lu Zhengyao only wanted to confront Starbucks head-on, but life and death were often between the front lines. It's easy to bring yourself into the ditch, and if you are too eager for quick success, you will inevitably lose all your previous achievements.
Now, Luckin has finally found its own exclusive track, gaining insight into the preferences of young people, and being able to launch affordable and high-experience products time and time again. Bring it back on track. I very much hope that more domestic brands can counterattack and bring diversified products to more young Chinese people.
I hope that Luckin can get better and better. If Luckin is listed again, I feel that it is worth buying this time.
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