Recently, Luckin Coffee has been on the hot search again!
This time it's not because of the collaboration, but because of **!
Many consumers reported that when they opened the Luckin Mini Program, they found that the homepage could no longer place orders directly9$9 for coffee, replaced by a "$9 per week."In the 9" section, the use of coupons is also hidden from the order page, and the coffee styles that can be selected are also designated as 8 types.
For "Luckin 99 yuan a cup of activity shrinkage", Luckin Coffee said: The adjustment of corporate preferential activities is a normal business behavior.
There is no doubt that Luckin quits "9The "9 yuan" game is undoubtedly releasing a signal that the growth logic of the brand has changed!
"Yuan" is an excellent means of attracting customers
But it's not the key to long-term growth
At first, in response to the "Coffee Carnival in 100 Cities and 1000 Stores" launched by Cudi Coffee, Luckin Coffee quickly launched the "99 yuan" as a counterattack. At that time, Guo Jinyi, chairman and CEO of Luckin Coffee, made it clear that this preferential campaign would become the norm and last for at least two years.
From June 2023, Luckin will fully promote the "99 yuan" preferential activities, which brought significant customer growth effects. According to Luckin's third quarter report for 2023, the company's average monthly trading users during the reporting period were 58.48 million, a year-on-year increase of 133% and a month-on-month increase of 36%, a record high; The scale of stores further expanded, with 2,437 net new stores opened in the third quarter, and the total number of stores reached 13,273, an increase of 225%。
However, Luckin Coffee's "9The "9 yuan" low-price strategy needs to rely on a large number of subsidies to maintain. In order to maintain this low price advantage, Luckin had to reduce profit margins at the expense of reducing profit margins, resulting in a significant decline in single-store profits.
This is also reflected in the financial report data. Affected by the low-price strategy, the overall gross profit margin of Luckin Coffee fell to 36 in the third quarter2%, down 56 percentage points. Despite an 85% jump in revenue, net profit fell 45 percentage points, down to 134%。At the same time, the year-on-year increase in selling expenses in the quarter was as high as 141%, showing the huge pressure on marketing costs from the low-price strategy.
In fact, the "low-cost customer acquisition strategy" can effectively attract a large number of customers in the short term, but in the long run, it is not the core driver of sustainable growth for businesses and brands.
Why do you say that, here we can quote "Internet ** Rocket Theory":
Level 1,Through strategies such as burning money, low prices, etc, quickly carry out "horse racing" in rigid demand or high-frequency business scenarios, forming the basis for a certain user scale.
The second level is to continue to accumulate user scale and deepen business scenariosConsolidate and expand market share through products and services, and build a solid competitive barrier.
First, by providing high value-added goods or servicesto maximize profits, cover the cost investment in the early stage, and complete the closed loop of the business model.
Luckin bids farewell to normalization"99 yuan" promotion, indicating that it has crossed the initial user accumulation stage. Whether it is brand cooperation or new product launch, it aims to deepen market share and improve user stickiness; And because of the fierce competition among Chinese coffee brands and the market structure has not yet been fully finalized, Luckin Coffee still needs to "99 zones" to maintain brand competitiveness.
So, for Luckin, real growth must be based on profits.
More than thatMeta" low price strategy,
Luckin is also a master of private domain operations
When many brands compete for market share, they often choose to launch a "** war". The logic of this strategy is to attract consumers' attention by low prices, drive them to the store, and then use the high-quality products and excellent service in the store to convert these consumers into private domain traffic for the brand, thereby improving the overall revenue performance.
For brands, consumers are sometimes blind, today they may consume your product at a low price, but it can also be easily shifted because other brands are lower**.
Therefore, if brands want to truly retain consumers, they must work products and services.
As Nuoyun has previously emphasized, "product + service is not only an important part of the brand's 'moat', but also the core of the brand's long-term competitiveness".Private domain operation provides an excellent field for enterprises, which can undertake their products and services at the same time, and achieve deep interaction and continuous connection with consumers.
It is worth mentioning that the Luckin Coffee we mentioned above can also be called the "ceiling" of the industry in terms of private domain operation.
According to the data, as of June 2023, Luckin has more than 10,000 stores, 20 million private domain users, and tens of thousands of communities.
In terms of the construction of the private domain system,Based on "WeCom" and with the help of the API interface provided by WeCom, Luckin has developed its own middle platform system, which has opened up the inventory of the store, the goods of the store and other systems; "Mini Program + Community + ** Account" to undertake the user's consumption journey; Among them, the mini program is to pull new coupons and place orders, ** is a new product recommendation, and the community is to wake up and remind users to increase the consumption frequency of old customers.
Although the private domain operation is all for the best discount and stimulates users to place orders, Luckin Coffee's private domain gameplay is quite innovative and personalized.
Here are two examples.
First, Luckin Coffee has developed a weather robot based on the WeCom interface, which will automatically capture the weather information from all over the world, automatically adjust the push copy according to the temperature and weather conditions, and recommend suitable drinks for users. Through this intimate coffee "butler" service, users have a feeling that the brand "understands me", and they are naturally more willing to place orders.
Second, in terms of private domain content output, Luckin Coffee conducts in-depth computing and continuous iteration of user, product, ** chain and other data through the "super user management platform".A refined SOP strategy has been developed, clearly defining the best time to release coupons and new products, as well as the type of content that should be published in the community and circle of friends. Front-line employees only need to enforce the implementation according to the SOP.
Luckin Coffee community operates SOP
In addition to its excellent performance in the field of service, of courseLuckin also pays attention to the "quality-price ratio" of products.
Thanks to the strong first-chain advantage, the stability and standard of Luckin products are very high, which can also be seen from the financial report, in 2023, Luckin Coffee will launch 102 new products throughout the year, with more than 2 billion products sold and more than 1.9 billion cups of ready-made drinks. By the end of 2023, Luckin Coffee has 8 SKUs with sales exceeding 100 million.
So, don't look at Luckin Coffee" 99 yuan", but its private domain operation ability can ensure that it achieves real performance growth!
What the brand lacks is not the scale of private domain users
Rather, it is the ability to schedule private domain users
Then there are also brands that will say, can I learn from Luckin's private domain operation style?
Realistically, you probably won't.
Because, Luckin Coffee has reached the world's top level in terms of informatization, digital application, chain management and store scale, etc., and these advantages together constitute its personalized private domain operation capabilities that are extremely difficult to replicate!
As the saying goes, "a clumsy craftsman copies, a skilled craftsman steals"!
While you can't fully replicate Luckin Coffee's unique private domain play, you can definitely draw inspiration and experience from its digital capabilities.
Based on the needs of the brand's private domain operation, Nuoyun takes digital tools as the core to comprehensively open up the data of different scenarios such as communities, enterprise micro SCRM, and ** private domain live broadcast rooms, continuously improve the brand's private domain infrastructure capabilities, and make private domain operation simpler!
Community tools: Provide operation tools based on the WeChat ecosystem, with functions such as community drainage fission, user invitation management, copywriting**, coupon sending, intelligent Q&A, etc., to help brand institutions achieve large-scale management and batch operation!
Enterprise Micro SCRM: On the basis of the digitalization of Enterprise WeChat, Enterprise Micro SCRM provides a bridge for brand merchants to deeply link customers, enabling brand merchants to grasp the detailed information, activity status and behavior trajectory of customers in real time, ensuring close interaction with customers, effectively managing and maintaining the best value customer assets, and achieving sustainable growth in performance.
Nuoyun**: Based on the model of live broadcast + e-commerce, the three core capabilities of aggregation scenarios and data help brands build an exclusive system and grasp more operational autonomy. With the support of Nuoyun**'s rich functions, such as "** coupons", "seckills", "grouping", "equity cards", "channel distribution", etc., brands can easily drive users to carry out online conversion transactions and achieve efficient business growth.
Private domain live broadcast: Help brands build a normalized private domain live broadcast system, continuously improve live broadcast capabilities and accumulate users. In live interaction, brands can enhance user engagement and stickiness, and at the same time cooperate with **to achieve large-scale conversion**.
In addition to the above digital tools, Nuoyun also provides one-stop solutions for brand merchants such as live broadcast room scene construction, escort full-case services and visual design services. Brand merchants can choose corresponding services according to their own needs, and achieve real growth through more refined private domain operation strategies.
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