How Luckin Coffee Bounced Back and Beat Starbucks in China
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- čas přidán 22. 08. 2024
- China’s Luckin Coffee has overtaken Starbucks as the country's top coffee retailer. That's a remarkable rebound from less than four years ago, when the company filed for bankruptcy.
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Starbucks is way overpriced. Nice to have competition
Exactly
According to WSJ, Luckin opened 9000 new locations in China just in 2023, compared to Starbucks which has a total of 7000 stores. Crazy growth.
Exactly. Here living in Toronto, ON, Canada, one of probably the most over priced city on the planet, I personally choose to drink McDonald's iced coffee for the summer, CA$1 per cup, even cheaper than Luckin.
Haven't even look at Starbucks for 8 years now.
they were cooking their books... Now a new scheme
you cant compete with slave labor.
I was in China. I was super impressed with Luckin Coffee. Because they are a Data driven AI assisted super coffee selling machine. Price is not an issue, they have high priced and low priced coffee products. However they activity get you to use their APP to order. Once you have done it a few times. They know exactly when to market a tailored cup of coffee promotion to you. Sure they will discount , but because the promos are sooo perfectly timed and suited to you, its driving demand and you end up buying more often. Where as starbucks, demand only comes when you are near a store. Luckin Coffee is basically getting your business before you even leave the office. It becomes a habbit, when you feel like a coffee you instantly ask "what does Luckin have for me today ?"
it is called spyware. I just don't understand why people choose to install such crap on their phones knowing full well the whole purposes is to spy on them plus fooling them into buying more nonsense craps.
Competition benefits consumers ... so good for Luckin !
You order and pay for luckin on your phone, you stop by the kiosk to pick it up. Fast, efficient, and affordable.
Sounds great for boys who don't want to have eye to eye contact with ppl
but don't they have a place to drink at the store as well?
@@ssjj005 yes, they do, but not comparable to Starbucks. Starbucks branch usually have 10 to 20 seats, while Luckin have 6 to 10seats.
@@ssjj005 it depends, some stores are like Starbucks, have seats, but half of them are just have a counter only offer take away. but anyway, the stores are everywhere, you can find one you like (drink inside or take out).
@@ssjj005 Back to few years ago they didn`t, new locations are for example opened on the street with only a small window and two workers, show your order with QR code to the worker and they`ll give you the coffee but nowadays more and more Lukin loations are with places that has few chairs and tables while people want to have a break with friends, I also sometimes order cakes or bread as my breakfast in lukin shop near my office.
Luckin coffee tastes very good for a fraction of Starbucks' price
Normally you need to pay twice on price to get a StarBucks coffee based on the price of the Lukin coffee, I was a huge fan of StarBucks back to few years ago but now I only take lukin coffee and I think SB is really ripping people off with such expensive prices, only fools will continue to choose SB.
For a Starbucks coffee of 30 yuans, 15 is for the coffee and the shop, 15 is for the brand name. The same quality of Luckin can sell at half of the price. When customers decide they drink the coffee and not the brand name, then . . . . .
Agreed. Especially nowadays American brands are no longer so much admired by the Chinese people for reasons everybody knows.
15 is for the coffee and the shop and rest 15 yuan is for the paper cup holding in your hand after walking out to street
Buy Hermes, you get 10% for the bag, employees salary, store rent and 90% goes to the brand and the owner private jet and mansion. 😅😅😅
But Luckout went bankrupt by selling cheap coffee.
@@mujur9101 lol indeed, back to 20 years ago, rich Chinese people like to have a Hermes belt with a big H character exposed on the waist for bragging.
this suggests Starbucks has nothing to justify it's brand name. In the western countries, people are obsessed with the brand for no reason.
Of course it does or Luckout wouldn't be selling so cheap.
@@TeeHee-vo1bn keep coping
To everyone outside of China, I wish you good luckin! The price of a simple Starbucks coffee is outrageous.
These American journalists totally don't understand what happened in China. Actually Luckin is not the competitor of Starbucks. Luckin is just a take away coffee store. There are only few seats or even no seat in Luckin. Starbucks is ordinary cafe with many seats. The real competitor of Starbucks is Haytea, which is a cafe but selling milk tea. It's the modern teahouse to take over the market which belonged to cafes like Starbucks. The take away coffee store is actually the partner of Starbucks to build up the coffee culture in China.
那倒没有吧，喜茶主要是卖奶茶的，而且已经降价了
@@denglinzhiniao 这里就是常见的西人的思维误区。并不是咖啡才能分流咖啡的市场。星巴克在中国的定位与其说是卖咖啡的，不如说是以一杯咖啡的价格把黄金地段的座椅出租给你几十分钟的。喜茶和奈雪才是挤占星巴克生态位的主力军。
竞争是没有问题的，但美国人应该把竞争对手定位在自己身上，而不是老想着和其他人竞争或者是发动战争。星巴克这么多年的不思进取，是今天失去市场和竞争力的原因，我早些年是星巴克的忠实粉丝，一杯咖啡快40元喝起来也毫不心疼，现在喝了三年多瑞幸已经很久不喝星巴克了，甚至回忆起来，我认为星巴克简直是抢劫和收智商税。
Starbucks coffee is average at best, at least in America, plus dealing with underpaid staff comes sometimes with attitude issues.
I have watched seven news channels in the United States. Every program on each channel was about China. After watching them, there has been a question lingering in my mind. Americans' concern for China far exceeds their concern for their own affairs and people.
If you watch the Chinese official news you are also going to find a hell lot of stuff about US. There are concerns for the other country in both of them. The Chinese propaganda, however, is far less objective than their US counterpart, although it's pretty much the same as what you find US to be in the US media
Trump : Chyyyna! Chyyyyyna! Chyyyya!
Don't forget bias...and not just the US. it's like this with other parts of the world FR24, DW, NHK...and oh i have a story about BBC. An article several years ago about lorry carrying migrants whom all died from overheat into the UK, BBC stated they were Chinese. The next day, same article was changed to Vietnamese who were among the deceased. No correction statement...as I've seen BBC do this for other misuse information. Basically, it was a casual, ...i really wish i screencap it or film it. This was among other insanely biased news about China that i just couldn't rap my head around why this constant finger pointing and outrageous accusation...that I finally stopped watching CNN, MSNBC, BBC, DW, etc.
Because the big corporations are panicking they're losing to Chinse firms.
it's how they do politics. they have nothing to offer so they resort to bashing the competition.
This is going well , people are attracted to lower prices even within budget.
It’s not all about price. Luckin is much more innovative compared to Starbucks in terms of sugar loaded, coffee drinks.
Try the Maotai flavoured (Chinese version of Irish coffee) and also the green tea/jasmine tea flavoured ones. Luckin simply offers more varieties than Starbucks does. Well, that’s innovation.
my wife is coming from a small town in China. when we visit in April this year, they have luckin coffee shop in town centre . starbucks wont open a shop in that small town like that. there is the differece it make for the number of stores in comparison. price is more important when it comes to trade in small towns/cities
I do recommend anyone visiting China to try the Moutai Coffee. I thought it was gimmick, but it ended up being quite delicious.
I could imagine it, I like strong drink
@@godzillamothra5983 Moutai is strong, but the Moutai Coffee isn't very strong.
let's just be honest, the so called moutai coffee is just for peasants who don't like coffee at all. Moutai and other Baijiu in general are for peasants to begin with, normally served with some green onions. don't get too shocked when they release green onion coffee.
@@mouseisbroken Isn't a coffee a good coffee if the drinker enjoys it? That alone should suffice? You can be as "honest" as you can be, but others can enjoy whatever coffee they find delicious. That should make sense?
@@mouseisbroken IDK where you heard about us serving green onions with Baijiu dude. It's a nice cuppa coffee period.
2:27 "... coconut latte . . . "
I dont know about Luckin's Coconut Latte, but I once drunk a brewed coffee topped with Coconut milk in Palawan, Philippines.
IT WAS DELICIOUS!!!!
I just had the coconut latte from luckin and it tastes 10x better than anything from Starbucks. The coffee had the right amount of creaminess, sweetness, and very smooth.
@@sarahjenkins7064 I will DEFINITELY try that Coco Latte!
@@DanBurgaud I have to admit, I was hesitant at first but glad I gave it a shot.
Thanks to the free market in China.
Competition usually means better service and lower price.
China doesn't use huge tariffs to protect their own brands,
instead they compete.
they make the same quality coffee but luckin is half price of starbucks, so why not?
Luckin coffee is good, comparable to Starbucks in quality and half of the price. I drank two cups a day when I was in China last year.
Everyone is missing the point here. No one chooses Starbucks because of price, its brand. There’s a Ton of competition in the U.S. in the coffee market, Dutch Bros, Dunkin, McDonalds, Circle K.
Price sensitive customers can always choose an alternative that is cheaper, this isn’t unique to Chinese brands.
Haven't bought Starbucks for 3 years and won't buy it ever. So overpriced and arrogant.
I've tried it and the coffee was great, especially for the price... About $2 instead of $4-6 for Starbucks. The bare-bone store was fine.
For LUCK, nothing can beat Luckin !!! ... Try it ! ... 😊
I wish Luckin coming to the US
I doubt the American Government can allow that. The coffee beans might spy on the Americans....
Won't happen for national security concern
They will get sanctioned by US government.
Nope, us have national insecurity issues
@@ismailchairi5212lol😅
In China, the US companies are beaten by more affordable product, while in the US, the Chinese companies are beaten by tariff and bans in the names of national security.😂😂😂😂
Exactly!
Nice take👍✌️
Everyone is beating starbucks. All focus on their local/regional brands.
Cheap copy is a Chinese characteristic.
@@TeeHee-vo1bn That is what you can only say when you have lost to better and cheaper products. That seems to be your characteristic. So poor.
Luckin is an AI driven company, it can easily sell anything if not coffee. Starbucks is just a traditional coffee franchise.
When Luckin caught in accounting scandal and delisted, I already knew it would make a comeback. For one thing, coffee scene is booming in China, and continue to boom, and there are a lot of opportunity to grow. Luckin, despite the accounting scandal, is at the forefront with huge network of branches, and its model of business is also very visionary.
can you explain what is so visionary about them?
@@ssjj005 Because Luckin just began to expand, coffee drinks accounted for only 3% of Chinese drinks, Chinese white-collar workers have a lot but not much coffee, this is a blue sea. Luckin did not sell pure coffee well at first. Luckin found that Chinese people's favorite drink was not pure tea or pure coffee. So Luckin developed milk tea with coffee, Luckin just developed. There are a lot of people drinking coffee in China now.
@@ssjj005 it is also focus on bare bone kiosks, most people like to drink coffee but don't have time to spend on coffee shop, they want it to go. More importantly, luckin also tech intense focus.
Luckin is the way to go….
Good value !
In Starbucks , you pay for the ambiance.
fun to know how it goes
It’s good they sold it better management
Love Luckin Coffee, please come to Switzerland !
Frankly, all western brand names were all over priced
starbucks is overpriced and watery. Luckin is so much better
First time to watch a American news video which talking about China without criticism but a light-hearted discussion.
There are a lot more coffee shops in China than in America, probably more than the rest of the world combined. Then there is even bigger tea drink business. Things in China are at a different scale
She couldn't go to Shenzhen? Why? No passport? It's an hour away from Central Hong Kong. If so, why is she reporting on a coffee chain in a country that she can't go to or can't be bothered to go to? This has nothing to do with Instagram either. Get some proper reporters who can report on China and also ensure they don't say "you know" and "um" every second word!
luckin coffee has everything that starbucks can offer, but starbuck doesn't have a lot of things luckin can offer
It never bounced back, it has always been better than Starbucks, always. I said this years ago when the Western media were trying to suggest their attacks on the brands Western outreach was somehow a crisis for a bust company. i pointed out then that here in China its HUGE, always has more customers than Starbucks by a country mile, its the biggest coffee seller in China right now and the reason is its Cheaper an the coffee is better. The Chinese market is huge, why would not selling in the US bankrupt a company with a solid, stable home market? Luckin has been opening stores consistently all over China for years, that has not ever changed and you will never see a Luckin store closing down. The fact is Lucking can be so easily ordered online in China 90% of its business is probably delivery.
>cheating corporation beats states brand.
Well yeah.
I live in the Bay Area -- I would love to buy $1.00 coffee, now it's $6.50 + $1.00 tip. I remember back in the day $1.00 would buy you a coffee and a donut in New York.
Starbucks doesn't make coffee. It got popular because of marketing itself as a status symbol because of its highly priced offerings. Expect Chinese nationalism and current hard times to give Starbucks a miss.
Starbucks is still super expensive but they are offering coupons to lower the price by about 10 RMV I believe
so that is about the same price as luckin?
2024 who drink overpriced coffee? 😂😂😂
I went to US consulate in Shanghai to renew my passport, and noticed consulate staffs were all drinking luckin coffee, I told my wife Starbucks might be in trouble soon in China
Chinese power 💪👏 no1 in the world 🌎
Luckin is more of a grab and go, where as Starbucks is sit and chill. Luckin uses 25% of the space, half of the man power vs Starbucks. This gives them a lot of room to reduce price and create new drinks based on season.
being cheap is Chinese companies way to win, and ultimately their way to zero win
SB doesn't make affordable coffee anyway. These are two different products.
Why pay more for Starbucks? Just ordinary coffee anyway!
Good news- Starbucks is too expensive 😂
I wish we had LUCKIN COFFEE ☕ in NZ
I just realized the Luckin logo is a buck lookin' at a star. ✨🦌
so it's buckstar ?
@@Billilv 😆I think it was intentional...
@@paranoidhumanoid But the logo doesn't have a star, only a buck.
I've never tried Luckin coffee but Starbucks serves low quality, over-roasted, charcoal tasting coffee. People who know good coffee don't drink Starbucks. Maybe the Chinese has improved their coffee tastes?
Chinese people also know that Starbucks Coffee is very bad, but before the Chinese people do not like to drink coffee, want to drink coffee, the brand only the United States Starbucks, There are Nestle instant coffee, but now the competition began, with the comparison we will know which good taste which bad.
1.5 dollar coffee should be the correct price, not 6 dollar Starbucks shit
Luckin 10 rmb a cup
Starbucks 40-50 rmb a cup
Luckin shares will make me wealthy
People go to Starbucks to fulfill their ego or impress their friends not for their taste
The era of luxury starbucks coffee is over, and when you ask people in europe, starbucks never about quality coffee anyway. Competitors wont be forgiving for Starbucks nowadays.
luckin coffee actually really nice
I don’t even go to Starbucks and I live in America
Lucky consumers in the PRC do not see price inflation in their coffee drinks. No wonder quite a few youtubers have mentioned that the cost of living is manageable in the PRC.
Because inflation is very low. And inflation is very low because manufacturers produce more than they can sell, so they have to keep prices very low. Public employees have had their bonuses cut, meaning less spending power. Reduction in investment, reduction in loans, increase in savings. All these are contributing factors in keeping inflation very low.
Their coffee is great. That is the most important reason. Try their coconut latte.
That Moutai coffee is phenomenal
Starbucks is insanely overpriced
In case those China-bashers may have missed, China will bounce back big time too.
How would you define 'big time'? 7% growth? 9%?
$6 trillion deflation?
@@ssuwandi3240 Yet, the growth rate is still over 5%. Furthermore, the deflating of the housing bubble was done intentionally. A few years ago, investors were warned by the government saying house is for people to live, not to invest.
In the end, it was the investors who got burned, not the people buying house to live. Perhaps, you like more and more people in americ.... can't afford either buying or renting and become homeless!
@@yunko9369 too funny when the subject is clearly about China and you people cannot stand to respond without crapping the nonsense in other countries... Try to focus and control the emotional excess.
@@ssuwandi3240 Why? Isn't affordable housing everyone wants?
Perhaps, this is not what you want....
Luckin coffee now in SG too.
Everyone is beating starbucks. All focus on their local/regional brands.
it;s not just Luckin which is competing but many brands like Manner, M Stand, Birdie Cup etc. Luckin' is leaner but also marketing wise smarter and they did a collab with Moutai that worked well (Manner had a collab with LV 2 years back that also did great). in the end the main issue that Starbiucks will have is they are no longer cool. I am 48 and my wife and I though Starbucks was cool when we were in our early 20's. our kids are now in their early 20's and would not be seen dead at a Starbucks (they like luckin but prefer milk / bubble tea). as for us.... well we just have a nespresso machine at home and at office. who needs to pay 30 kuai for a coffee
but 10 kuai for a coffee is cheap but can do better. a new wagas opened by my office and they have a special 9.9 kuai for a coffee plus a bacon bagel for breakfast....
anyone paying over $3 for coffee is an idiot. yeah i said it! deal with it!
It was popular among saudi retail investors thanks to local forums 😅
I used to make fun of them clearly I was wrong 😂
Who drinks coffee now days 😂😂😂
luckin coffee is rising like a phoenix.
While the Luck flows in for its drinkers ! ... 😊
Race to the bottom. If I were Starbuck's, I wouldn't follow the rest. Stick to being a premium brand, but make sure people get a good experience for their money. People are happy to pay for good experiences. After all, people in China happily pay RMB 500 just to enter Shanghai Disney World.
National Security! 🤣
In China, Apple should indigenize its name to Pingguo (dispose its big bad USA affiliation) right
where was the show taking place? Hong Kong?
China might aswell replace all other brands like this in case it kicks off with Taiwan, like with Russia and Ukraine and western brands pulled out of Russia.
china is like the #1 or #2 market for all these western brands, the CEO's bonuses depends on it. Russia is a tiny market they can afford to lose...
The addiction 😅❤
The Year of Flying Dragon 🐉.
good luckin. starbucks awful coffee and company pls boycott
Starbucks is no coffee!
both sucks. starbucks is worse than instant coffee, Luckin is like instant coffee mixed with some Chinese herb, just disgusting. companies should provide their employees with poor performance review with starbucks and Luckin as punishment.
Starbucks overpriced, and overrated.
The company faked its public financials makes real coffee to the public?
The owner has been removed 3 years ago. Its a new owner now
ironically, yes, basically they source the same or similar coffee beans to Starbucks and pretty much tastes the same but 1/3 of their price, now you know how overpriced Starbucks is
Copyright stealing
Indeed, China's favorite drink is tea. When Luckin was founded, only 3 percent of Chinese drank coffee. China's consumption habits to change is very long, so the company in order to whitewash the peace, financial fraud. But there is no denying that it has cultivated the Chinese habit of drinking coffee. More and more Chinese people drink coffee, so the brand has not closed down, but better and better. Basically, it's a rush. And of course they were punished. They really should be punished
Some people in China say they are pulling up the wool of American investors to teach Chinese people to drink coffee. But everyone knows that he cheated on his finances, which also hurt Chinese companies listed in the United States. That's why everyone hates him
How many times has Bloomberg slapped itself in the face? 100? 200?
瑞幸不好喝，咖啡淡如水，很多人把瑞幸当奶茶喝，不是为了喝咖啡。 I love Starbucks, its coffee is more stable
你说反了吧，现在星巴克的出品简直就像抽盲盒，某些店里全是兼职学生我就知道我的espresso 又要发酸或者发苦了
@@a130078949 啊？你那边这样了吗 星巴克优势不就是出品稳定 😂
@@a130078949 你那里这样了吗 星巴克优势就是出品稳定啊😄
but...does Luckin Coffee have prime locations like starbucks?
yes but the store is small
actually they really do...but sometimes there is just a counter to take away your drinks or simply three to five seats.
Can't say much about the Luckin stocks I bought that went to $0. FML
@@Garpot You should have averaged down. 👍
They control completion
over capacity coffee!
Chinese coffee companies are labeled as "cheap coffee", but when the lady talks about american companies she uses "low prices"
Seems like the national security threat excuse and u.s tariffs cant be used when competition takes place in another country 😆
The company is founded by ex convict.
I noticed whenever you talk about China you use Asian women. I guess you want make it sound credible lol.
Very good. Nobody should make money in China.
At 11 Yuan ($1.51), the Chinese coffee isn't cheap for the average Chinese. Starbucks is just too expensive (33 Yuan/$4.54). The average income in China is considerably less than the average in the States, and many Americans consider Starbucks to be too expensive.
Considering cost of living, average income in China one could live more comfortably than the average Americans.
@@sz5263 Perhaps. But it's a different culture, so lifestyles won't be the same, and therefore, it may not be what Americans consider comfortable. For example, their households are frequently multigenerational (three or four generations of family living under the same roof). The adult children care for their elderly parents and their parents help to care for their grandchildren. Also, scooters often take the place of or supplement the single family car.
@@theotheleo6830You are half right. Chinese people don't ride bicycles because they don't have cars. The United States is sparsely populated, the same land area of China lived 1.4 billion in the United States less than 400 million, short-distance travel is the most convenient scooter. Chinese families also have cars. Chinese people also dislike the United States wooden house is not soundproof, China's cheap labor cheap, not some of their own small problems to repair their own, I'll mow the lawn myself. There's not a lot of clutter in the house. Because you can hire someone else, it won't cost a lot of money
我告诉你吧，十块钱的咖啡并不贵。中国人更喜欢喝奶茶。30的奶茶都喝了😂😂😂
Chinese 🇨🇳 firms published outrageous numbers to scam investors' money.
- Evergrande, Country Gardens, Alibaba, and Lucking Coffee are a few examples.
Indian bot COPE
Bot alert.
Bot😂😂
Like American Enron, WorldCom, Theranos, Bernie Maddof Inc etc Lukin Coffee came came stronger than before. Good for them.
But fabricating your sales figures is okay. Why are you even giving this company publicity considering the scandal?
Hyundai is doing fine. Tesco is doing fine. Target, Toshiba, Heinz, KPMG, AIG...they're still around. You don't go down just because of frauds. Look at Toyota and Honda.
Everyone deserves a second chance. They grabbed it and redeemed themselves.
Fake accounts again
Fake more books Luckin coffee
❤