Dear MEL Topic Readers,
Luckin surpasses Starbucks in China in annual sales
Coffee drinks are rapidly becoming popular in China. Starbucks entered
the Chinese market in 1999 and has established the premier coffee brand with
its customized drinks, friendly service, and comfortable atmosphere. With about
6,800 stores, it had been the leader of the coffee chain businesses in China
until 2022. Founded in 2017, Luckin Coffee has been growing at an incredible
speed and now operates over 16,000 stores across China, about as many as
Starbucks stores in the USA. Their affordability, convenience, promotions, and
delivery services have all contributed to the rapid growth, especially in the
tier-1 and tier-2, thirty-some largest cities. Last year, Luckin surpassed
Starbucks in annual sales volume in China by increasing nearly 90% over the previous
year. With its lighter store format and affordable prices, it is expected to grow
even further, especially in the sinking markets, or 3rd-tier markets
where competition isn’t as fierce as larger markets. And there are other coffee
store chains arising and growing rapidly in the market of 1.4 billion mouths. As
China’s coffee consumption grows, will there be enough supply?
Read the article and learn about how rapidly China’s coffee stores are
expanding.
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