Luckin first burst onto China’s cutthroat coffee scene back in 2017 and industry watchers say young Gen Z customers have been vital to its success – many who flock to stores for a taste of its highly-affordable signature cold foams, brews and lattes.
“The rise of the Chinese coffee industry and Luckin is the result of China’s embrace of the world,” wrote Chinese journalist Ding Gang in an opinion piece for state-run outlet Huanqiu, published on Wednesday (Jul 2).
“With flexible category innovation, digital operations and cost-effectiveness, Luckin has cultivated a variety of fresh flavors that suit young Chinese coffee drinkers,” he said.
Ding noted that Luckin is one of the biggest buyers of coffee beans from Yunnan, a province in southwest China better known for its Pu’er tea.
With a foothold in the US, industry observers will now be watching to see if Luckin’s value-focused, app-based approach can win over American coffee drinks.
“The world has never lacked coffee (stores) and brands,” said Ding Gang, adding that the global coffee market would continue to expand.
“Luckin Coffee’s (entry into) the US is not to copy Starbucks’ strategy but to expand global taste boundaries – with coffee that carries a taste of China’s heritage,” he said.
Source: CNA
