How Luckin Coffee Overtopped Starbucks in China
Throughout the years, the growth of coffee culture in China has been marked by intense competition. There is no doubt that several coffee brands have fought for dominance. As Starbucks, the global coffee giant, opened its iconic stores across Chinese cities, the company led the charge. However, a relatively upcoming player, Luckin Coffee, surpassed Starbucks to become China’s largest coffee chain after emerging. This piece will explore how Luckin Coffee overcame scandals and transformed into a coffee powerhouse, eclipsing Starbucks.
Luckin’s Scandalous Beginnings: the Rise and Fall of a Household Name
Luckin’s meteoric rise
During the early 2010s, coffee was when coffee consumption in China rose, and Starbucks eagerly tapped into that market. Starbucks had a head start on the market, but Luckin Coffee launched its brand in 2017. The company adopted an innovative, app-based ordering system and emphasized self-pickup, making its stores smaller, more convenient, and more cost-effective. Customers, particularly those seeking affordability, were attracted to this strategy, which attracted many customers.