Rui Xing turns around to remember the biography of Zhen Huan! How can Luckin Coffee turn losses into profits?

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On March 2, 2023, Lucky released its results for the fourth quarter and the whole year of 2022. According to the financial report, Ruixing's total net income in the fourth quarter was 3.695 billion yuan, an increase of 51.9% over the same period last year. Total net income in fiscal year 2022 was 13.293 billion yuan, an increase of 66.9% over the same period last year, and the overall operating profit for the whole year turned into profit for the first time!

In terms of store expansion, Ruixing opened a net 1290 stores in 2022, an increase of 36.4% over the same period last year. By 2022, the total number of stores reached 8214, including 5652 self-owned stores and 2562 joint-venture stores. (according to Lucky's accelerating expansion and sinking market, the number of stores has now reached 8350 +.) Since its founding, Luckin Coffee has not dared to write about what he has experienced in TV dramas. From 18 months after the establishment of the brand, it was listed on NASDAQ in the United States, setting a new world record; to delisting after being exposed for financial fraud of 2.2 billion yuan a year after listing, and a big change at the top, investors withdrew one after another.

When it was originally thought that Rui Xing would be in decline and could not make a comeback, Rui Xing did not announce the completion of debt restructuring on April 11 last year, as expected, and with the support of creditors, to end the bankruptcy protection proceedings as a debtor. At the same time, it also comprehensively solves the problems left over by history and returns to the normal state of the company. And on May 24 of the same year, when he released his financial results for the first quarter of 2022, he said that Lucky was profitable for the first time. At the same time, Starbucks' sales in China fell 23% year-on-year due to the recurrence of the COVID-19 epidemic and policy restrictions.

On the other hand, under the double pressure of debt and epidemic, Rui Xing is not only reborn, but also profitable. Its success can be said to be a miracle, or it can be said that Rui Xing has seen through the needs of a new generation of consumers and quickly opened up channels and implementation. "willing to give consumers" wool "" Lucky's coupons are as if they are free! " This is the greatest impact of many consumers on the Ruixing brand. Nowadays, when everyone is pursuing high sex ratio products, those freshly ground coffee products that used to be neither cheap nor close to the people have also become the daily routine of the public under the coupons issued by Lucky again and again. Although Luckin Coffee needs to continue to operate under the pressure of losing money when he has not completed the debt restructuring, Ruixing has never stopped distributing coupons. Although financial problems make investors lose trust, but the store operation, still reaped a large number of consumer trust and loyalty.

After completing the debt restructuring, Ruixing increased its preferential efforts, not only continuously joining hands with other third-party companies to introduce more preferential cooperation policies to other companies to attract more customer groups from different regions to pay attention to Lucky, but also through interactive live streaming on the video platform, offering preferential prices for more drinks, as well as products around other brands, to further stimulate user participation, sharing and dissemination.

Not only that, the live broadcast of shouting Mac is easy to make consumers feel tired, so Rui Xing also tried a very new way of live broadcast: male model catwalk! Let coffee become real, let shopping become heartbeat.

"Product differentiation, launch popular style products" when it comes to Lucky's popular style, it is a raw coconut latte! While Lucky continues to use coupons steadily, it also keeps abreast of the taste needs of the new generation of consumers. In today's material-rich era, people have a great pursuit of taste innovation and curiosity, as well as health and environmental protection.

So Luckin Coffee developed a product that is not on the market-beating raw coconut into rich coconut milk, then pairing it with coffee to launch a raw coconut latte. The launch of this product not only makes raw coconut products popular all over the network and the whole industry, but also brings Lucky brand awareness to the world, but also opens the distance of Lucky's positioning in many coffee chain brands.

Many people think that Lucky's "life" was saved by a raw coconut latte. But in fact, it is lucky to see their own advantages, and know what consumers really need, and then make a gamble.

Ruixing knows that after she launches a raw coconut latte, other coffee brands will imitate one after another. if they do not consolidate and hold the point, when others copy, it is easy to be defeated by the other side.

But Lucky has secured a large number of loyal users, and because of its first launch, follow-up replicators are unable to sell at short-term low prices on the cost of raw materials. Therefore, at the time of launch, Ruixing quickly attracts more new users with favorable pricing and attractive selling points, and superimposes coupons to turn these new users into loyal customers.

"the speed of product innovation and renewal is fast, and the pricing of new products is close to the people."

How fast does Ruixing launch new products? According to observation, Lucky can launch nearly 100 new products in a year. Whether it is brewing coffee products or using coffee beans from different regions to make coffee, lucky products are updated and iterated very quickly. Although not Excelsior, but when the taste and price are convenient, it has been recognized by most consumers.

Compared with the pricing of most coffee brands in the range of 25-35 yuan, Ruixing's product pricing of 11-20 yuan has a great advantage. At the same time, Ruixing attaches great importance to customer access to change business private domain traffic, by entering the regional WeChat group and issuing more coupons to improve the retention rate of users.

After the outbreak of "open to join and expand the sinking market", with the increase of the pressure of life and the continuous spread of boutique coffee culture, people's demand for freshly ground coffee is also increasing. According to market analysis, the compound growth rate of global current coffee consumption is 5.7% in the next five years, while the compound growth rate of China's current coffee consumption is as high as 24.6%. Reason: there are many areas where freshly ground coffee can be popularized in China.

In recent years, many people working in big cities have moved to other small cities, driving the demand for coffee in third -, fourth-and fifth-tier cities. Therefore, during this year, Ruixing reopened and joined, focusing on the development of the sinking market. The addition of franchisees will enable Lucky to achieve rapid coverage in third -, fourth-and fifth-tier cities.

At a time when various coffee brands are expanding the sinking market, "fast" is very important. Only enough fast and enough, coupled with high performance-to-price ratio, can stabilize consumers' awareness and recognition of the brand in a new area, and make consumers think of Ruixing immediately when they mention coffee.

"discerning signing & understanding the Marketing of Young people"

Before the start of the Winter Olympic Games, Gu Ailing was signed like a divine operator, and immediately after Gu Ailing won the gold medal, she launched relevant drinks, and the sales of drinks and people's discussion about the brand also occupied the hot search list for a long time. Everyone said that Ruixing is really very discerning.

This is just the beginning. Lucky will keep an eye on the events that young people like to watch in different regions, and will invite the champions of popular events to endorse their products / brands at the end of the competition. For example, team EDG, champion of League of Legends's global finals in 2021, and Anthony Douglas (Anthony Douglas), champion of the 2022 WBC World Barista Competition.

In addition to these, netizens have been able to keep up with the hot topics discussed by netizens, and launch various joint names, themes and new products in time. Whether it's packaging design or product name, Ruixing understands the concerns and needs of young consumers very well.

Every time Ruixing's new product is launched, it will get the attention of consumers in different regions, become a topic after dinner and spread by old users.

"people-oriented, customer needs first"

From Ruixing's "self-help strategy" for more than two years, we can see that nothing is more important than the stability of users. Luckin Coffee has never been favored-the return of the king-to turn losses into profits, the success of the brand is inseparable from the support of loyal users.

Success is not a miracle, but people-oriented, customer needs-oriented. In this era of mutual volume, only by copying and imitating the path of others, we can not live in the industry for a long time, because only with real innovation can we gain a firm foothold in the industry.

When you can't change your surroundings, the most important thing is to calm down and think about a path that suits you.

Photo Source: Internet