Lucky Coffee flag:2019 will surpass Starbucks completely and will never become the next ofo

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On the afternoon of January 3, Luckin Coffee held a strategic communication meeting in 2019, announcing 2018 annual operating data, 2019 development goals and responding to recent queries. Luckin Coffee began trial operation on January 1, 2018 and officially came into operation on May 8. Luckin Coffee opened a total of 2073 stores in a year, of which 1897 were fast stores and the rest were takeout kitchens. Luckin Coffee plans to open 2500 new stores in 2019, surpassing Starbucks to become the largest chain coffee brand in China, providing consumers with high-quality, cost-effective and convenient coffee.

In 2018, Luckin Coffee made a high-profile appearance with frequent movements. No matter in terms of financing speed and valuation scale, or in strategic cooperation, Luckin Coffee's one-year development has been accompanied by a lot of discussion. From the announcement at the beginning of the year to bring 1 billion yuan into the game, to the confrontation with Starbucks in the middle of the year, and then to work with Tencent and Meituan Dianping, the valuation after round B financing was 2.2 billion US dollars. Earlier, foreign media reported that Luckin Coffee was discussing overseas listing with investment banks.

However, for the listing rumors, Luckin Coffee CEO Qian Zhiya did not respond at the scene of the event. According to her, as of December 31, 2018, Luckin Coffee had opened 2073 stores, including 1897 premium stores and express stores, and 176 take-away kitchen stores, accounting for more than 90% of the total number of stores. Luckin Coffee consumes 12.54 million people and sells 89.68 million drinks. The proportion of self-withdrawing has increased from 35% at the beginning of the year to 61%. Qian Zhiya mentioned that the outside world said that Luckin Coffee is a take-out coffee, but the self-pick-up rate is increasing. Lucky also said that the average delivery time of delivery orders is 16 minutes and 43 seconds, the delivery 30-minute timeout rate is 0.4%, and customer satisfaction is 99.6%. Luckin Coffee's 3-month repurchase rate is more than 50%.

1. What is the goal in 2019?

Qian Zhiya made it clear at the scene that 2500 new stores will be opened in 2019, with a total of more than 4500, making it the largest chain coffee brand in China, surpassing Starbucks in terms of store volume and cup volume.

2. Will it be the next ofo?

Luckin Coffee CMO Yang Fei believes that what appears in public opinion at present is on a par with ofo, Lucky is useless, and there is a push behind it. It is unlikely that start-ups, which lost 800 million yuan, went to Baidu Hot search and Weibo Hot search on December 7. many of the data addresses come from overseas and do not show their place of belonging, so competitors should compete openly. Yang Fei also believes that our team is not just graduated from college students, are entrepreneurial veterans, is a cautious team, rational and virtual side. It will definitely not be the next ofo. I hope everyone will have confidence, and investors will also have confidence in us.

3. What is the situation of losing 800 million yuan?

Yang Fei believes that the loss of 800 million at the end of the year is expected, and may lose more. This is a very good deal, it is currently a strategic and long-term investment, and investors are worried about the conservatism of the team. At present, I hope that education will come out of the whole market. Luckin Coffee has the core competitiveness, that is, coffee with a higher performance-to-price ratio, which conforms to the trend of the times. Consumer equality breaks the monopoly of high prices in the market. Yang Fei believes that at present, the first is not to rely solely on subsidies to get customers, the second subsidy is a long-term strategy. He also insisted that the strategy would not change for three to five years, that subsidies would not stop, and that it would not be considered until five years later.

4. Will users be lost?

2018 can be called the first year of coffee consumption in China. Luckin Coffee has reduced the cost of stores compared with traditional coffee. For users, the convenience and quality are very high, and users will not be lost.

5. With the rapid expansion, how to ensure the product quality?

Rapid expansion does not mean a decline in quality, put more money into equipment, raw materials, etc., to make this cup of coffee taste better. Making a good cup of coffee and choosing the best equipment and raw materials is what the whole team is most concerned about.

6. What do you think of the cooperation between Alibaba and Starbucks?

Qian Zhiya said that the emergence of Ruixing has promoted the cooperation between the two, which has been a digital operation from the first day of its birth. Ali and Starbucks also want to try this, but it will take some time. The boost of new science and technology applications to Chinese consumption is visible, and it is also in a leading position in the world.

Qian Zhiya finally added that it is ridiculous to compare Ruixing with ofo because you don't have to pay a deposit to drink coffee. With regard to the issue of listing in Hong Kong, it is not convenient to disclose, which is not the theme of today. Luckin Coffee received $200m in round B financing on December 12, 2018, with a post-investment valuation of $2.2 billion.

Summary:

Luckin Coffee's rapid rise depends on the gap between the traditional coffee purchase model and the change of consumer behavior, rich experience in founding a team business, abundant funds and well-planned marketing strategies. Unlike the technology industry or the food industry, which uses unique technology or exclusive products as a moat to isolate and block competitors from entering the field, Luckin Coffee relies on speed and takeout model to expand rapidly, but this is not impossible to replicate. nor can it stop other competitors from joining the war. Therefore, whether it is possible to maintain the growth of new users, quality control, and put forward more eye-catching sales data in order to win the favor of more investors in the listing or the next round of financing, under the condition of continuing to "burn money" subsidies, it will be the key that Luckin Coffee can continue to walk or quickly move towards the bubble.

Pictures and sources: Luckin Coffee, NetEase Technology, Sina Finance

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