Text |Rust-free bowl Pecans.
Coffee is still a "leading business", but the growth logic has changed.
Low price, going to sea, crazy co-branding. According to the "Carmen" report, in the past year, there have been nearly 350,000 coffee stores "disappeared" in the turmoil of the industry. After witnessing the various involution routines of the coffee track, a new problem has been placed in front of everyone:
What is the "growth consensus" of China's coffee industry in the next stage? In response to this confusion, Luckin has just released its annual results.
According to public information, the total net income of Luckin in 2023 will be 2490.3 billion yuan, a year-on-year increase of 873%, the scale of revenue hit a record high, of which, Luckin's total sales in the Chinese market was 248600 million yuan (about 34..)$500 million). Starbucks achieved 31 percent in the Chinese market last year$600 million (about 22.7 billion.)RMB 3.9 billion). This means that Luckin China's annual revenue in the Chinese market has officially surpassed Starbucks for the first time, becoming a veritable "king of coffee" in China's chain coffee market.
In fact, Luckin surpassed Starbucks China in terms of revenue in the second quarter of last year. The overtaking of the annual performance also means that the domestic coffee brand has ushered in a critical moment.
From the enlightenment of freshly made coffee brought by "Starbucks to China", to the national coffee brand represented by Luckin that has truly brought coffee into the era of mass parity, Starbucks has long occupied the leading market position. Nowadays, the dominance of one power has been completely broken, and domestic coffee brands will occupy a greater voice in the future.
In addition to the revenue results, the strong growth of Luckin is also reflected in the scale of stores. In the catering and retail industry, the speed of store expansion and the performance of a single store are the most direct indicators to reflect the correctness of the business model. Luckin's financial report shows that the number of net new stores opened throughout the year exceeded 8,000By the end of 2023, the total number of stores reached 16,248 (including 30 stores in Singapore), including 10,628 self-operated stores and 5,620 affiliated stores, compared to 6,975 Starbucks stores in China during the same period.
From becoming the first "Wandian brand" among coffee players, to a comprehensive breakthrough in revenue, it took Luckin more than six years. It can be said that the continuous iteration of Luckin's business model has not only achieved its own steady development, but also directly promoted the development trend of China's coffee market.
In the past year, one of the most frequent keywords in China's coffee industry is undoubtedly "under the melee of coffee brands."It seems that they are all "volume**", but in fact, they have been "differentiated".——The "head players" represented by Luckin have developed more rapidly, and they have become more flexible and precise in their strategies, but the new coffee brands represented by Cudi and others have shown a decline in the ** war - in January this year, Cudi, which relied on soaring low prices, was exposed to the news that "the headquarters forced affiliates to sell alcohol".
It can be said that Luckin Coffee started from the second quarter of last year 99. It really affects the competitive situation of the coffee market.
A professional close to Luckin revealed to Caijing Wuji that Luckin's ** strategy will continue. At the results meeting, Guo Jinyi, chairman and CEO of Luckin Coffee, said that the competition in China's coffee industry is becoming increasingly fierce, but the development pattern is far from being fully formed, so in 2024, it will still adhere to the existing development strategy and pricing strategy, expand the user base, and increase the frequency of consumption to expand market share.
This also illustratesLuckin's understanding of ** is not only the "traffic logic", but also the long-term "growth logic", relying on the scale advantage to seize users and the market more accurately, because this is the focus of the next round of coffee track competition.
At present, China's coffee market is entering the "quality-price ratio era"."Quality-price ratio" is a systematic capability, and whether it is in terms of scale advantages, innovation capabilities or operational efficiency, Luckin continues to maintain its leading position in the market.
From the perspective of the number of stores, "10,000 stores" brings Luckin not only a change in scale, but also an all-round "qualitative change" from the first chain, franchise system to business modelIt gives the brand the ability to deeply cultivate the first chain and dig deep into the industrial chain. In addition to cooperating with the world's leading merchants to purchase high-quality coffee beans from world-renowned coffee producing areas, Luckin Ethiopia's Ethiopian office was officially established in Addis Ababa in May last year, continuously improving its ability to control the quality of the source. In the midstream production and processing link, after the Ruifu baking base was put into operation in 2021, the Kunshan baking base in Jiangsu Province is expected to be completed and put into operation this year, and the fresh fruit processing plant built in Baoshan, Yunnan Province in August last year will also be put into operation this year.
From the perspective of the logic of explosive products, "produced by Luckin" and "explosive products" have almost been equated. From the raw coconut latte, which sold more than 300 million cups in two years, to the raw cheese latte, which broke the sales record of 1.31 million cups on the first day, to the sauce-flavored latte ...... with a single-day sales of more than 100 million yuanIn 2023, Luckin launched a total of 102 new products, with more than 2 billion products sold and more than 1.9 billion ready-made drinks. By the end of 2023, Luckin has 8 SKUs with sales exceeding 100 million.
Of course, coffee has never been a business chasing short-term profitsFor today's Luckin, profit margin is no longer the only pursuit, long-term steady development is the goal.
Despite rapid development in recent years, the Chinese coffee consumption market with "only 10 cups per capita" is still in the early stages of development, and it is certain that Chinese coffee brands will face more fierce competition. And for Luckin's 99. We should not only look at the first, but also see the accurate grasp of the diversified needs of users by the brand itself, as well as the prediction and guidance of market development trends.
Kunpeng Project