Luckin Coffee officially spun off "Little Deer Tea", Xiao Zhan endorses the third and fourth tier market!

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Luckin Coffee announced in Beijing that its subsidiary brand "Little Deer Tea" is officially operating independently, including the opening of independent offline stores, online APP and Mini Program, the number of tea categories will quadruple to more than 30, and has hired popular star Xiao Zhan as the brand image spokesperson, while launching the industry's first new retail operation partner model to recruit operating partners nationwide. Unlike the existing 100% self-owned Luckin Coffee store, the Little Deer Tea store will adopt a franchise system with no franchise fee and no share until the store is profitable.

Sales of Little Deer Tea are better than expected

According to the company registration information of Tianyan Cha, Xiaolu Tea (Xiamen) Co., Ltd. was registered in Xiamen on Aug. 26 with a registered capital of 30 million yuan and is 100% controlled by Luckin Coffee (China) Co., Ltd.

According to Liu Jian, chief operating officer of Ruixing, the Xiaolu tea series has been widely welcomed by consumers since its launch in April this year, with rapid growth and sales far exceeding expectations. In order to better open up the tea market, it is decided to split the deer tea brand to operate independently and open deer tea stores across the country. The company will continue to maintain the high growth of coffee business at the same time, take the new tea as another important starting point, and further expand the breadth and depth of the market.

When Little Deer Tea was announced to enter the new tea market, Luckin Coffee pointed out that there are still many problems in the current domestic new tea market, including fewer head chain brands, uneven product quality caused by the franchise model, insufficient supply chain management capacity, and the current model can not strictly guarantee product hygiene. Obviously, through several months of operation, Little Deer Tea has achieved good results.

Sell coffee on the first and second lines and tea on the third and fourth lines.

Liu Jian said that Little Deer Tea store and Luckin Coffee store will form a strong complementary. In terms of products, the Little Deer Tea store will also sell Luckin Coffee's full range of master coffee products, but it will be more abundant in tea products. at the same time, Luckin Coffee's store will continue to sell some classic Little Deer tea products; in the consumption scene, the Little Deer Tea store will focus on leisure scenes, while Luckin Coffee stores will focus on office scenes. In terms of urban distribution, Little Deer Tea will focus on second-and third-tier cities, while Luckin Coffee will focus on first-and second-tier cities.

Compared with coffee consumers, tea consumers have a broader prospect of sinking to third-and fourth-tier cities. In addition, the natural mission of Little Deer Tea is to compete for the young consumer market. With the independent operation of the Little Deer Tea brand and the implementation of the new model, Luckin Coffee's new retail whirlwind is bound to cover more cities, which will also promote the promotion of Lucky brand and the sinking of channels.

Launch a new retail partnership model without franchise fee

The term "partner model" is also popular this year in the field of online used cars, which also focus on new retail.

In order to tie in with the development of Little Deer Tea stores, Luckin Coffee said that a new retail partnership model will be launched. Deer tea will share the risk with the partners, and during the initial development of the market, the partners will be given certain subsidies to develop new clients, such as the first free online fission coupons and other expenses will be borne by the headquarters of small deer tea. In addition, Little Deer Tea can enjoy Luckin Coffee accumulated customers, unified docking takeout platform. Liu Jian said that what is different from the general joining model is that Xiaolu Tea does not charge partner franchise fees, and will not charge any share until the partners reach the break-even point. Only when it has profits, it will charge a certain share of its profits. The specific proportion will not be disclosed.

Liu Jian pointed out that with the independent operation of the Little Deer Tea brand and the implementation of the new model, Luckin Coffee will cover more cities. It is believed that there will be a significant improvement in the number of customers, consumption frequency, store efficiency and many other aspects.

According to industry insiders, Luckin Coffee has become one of the major players in the new tea market by virtue of his strong brand, technology, capital and operational strength, as well as his influence on the supply chain and a network of stores throughout the country. The independent operation of the Little Deer Tea brand and the launch of a new retail operation partner model will accelerate Luckin Coffee to seize the sinking market, thereby further increasing its market share.

Currently, Ruixing has opened the entrance to the new retail operating partner of Little Deer Tea on its official Wechat account, and entrepreneurs who wish to join can submit cooperation applications by filling in the appropriate information.

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