Luckin Coffee, founded in Beijing in 2017, has rapidly rise and strategy transformed the coffee landscape in China and beyond. Within just a few years, it catapulted itself to become the largest coffee chain in China by store count, surpassing even Starbucks. By March 2023, Luckin operated over 9,351 stores, and as of July 2024, this number soared to 20,000 locations across the country. Source.
The company’s growth strategy was aggressive; it opened its first stores in January 2018 and quickly gained traction through a combination of innovative marketing and technology-driven services. By October 2018, it had already outpaced Costa Coffee to become China’s second-largest coffee brand. Source
Its resilience is evident as the company reported rise and strategy total sales of $3.45 billion in 2023, surpassing Starbucks’ sales in China for the first time. Source.
In this article, we’ll explore the rise of Luckin Coffee, delving into its unique market strategies, rapid expansion, and mission-driven focus on affordable, high-quality coffee. We’ll also examine how Luckin leverages cutting-edge customer service strategies—including its integration with Sobot—to enhance customer experience, streamline operations, and maintain a competitive edge in the fast-evolving coffee industry.
Luckin Coffee’s Mission and Vision
Luckin Coffee’s mission is clear: to integrate phone number list quality coffee into the daily lives of consumers at an affordable price. The company aims to provide a high-quality coffee experience that is both accessible and convenient. Its brand vision encapsulates this ethos: “to make it easy for every customer to enjoy a cup of good coffee that is accessible and worthwhile.
The company’s operational model is heavily reliant on technology; customers order and pay via a dedicated mobile app, streamlining the purchasing process and enhancing customer engagement.
This approach not only simplifies operations but also aligns with the preferences of tech-savvy consumers in China. Source.
Luckin Coffee’s Customer-Centric Business Model
Digitally Native Strategy
The Luckin Coffee app is a one-stop platform for black creators and artists customers to explore the menu, place orders, and make payments—all without stepping into a physical store. This approach not only streamlines the customer experience but also allows Luckin to gather valuable data on consumer preferences and behavior, enabling them to tailor their offerings accordingly. Source.
Digital-First Approach
A Fortune report highlighted Luckin Coffee as a case study sms to data in digital transformation, calling its app “a benchmark for convenience and user engagement in the food and beverage industry”. Source. The digital-first approach adopted by Luckin Coffee reshapes how customers interact with the brand from ordering to post-purchase experiences.
Quick & Seamless Ordering Process
Luckin Coffee’s emphasis on a quick and seamless ordering process is evident in features such as mobile pre-ordering and digital payment options. The integration of various payment methods, including WeChat Pay and UnionPay. This ease of use is complemented by a promise of speed; for instance, Luckin aims to deliver orders within 18 minutes, ensuring that customers receive their coffee promptly. If an order is delayed by more than 30 minutes, customers receive their coffee for free. A strategy that not only builds trust but also keeps customers coming back.