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Product comparison between Luckin Coffee and Starbucks
Class: Shi 'an 172 Name: Liu Yahui Student ID: 20177180217?

China is one of the largest emerging coffee consumers in the world, with sustained economic growth and continuous improvement of people's living standards and quality of life. At the same time, it also has the economic ability to consume coffee. The demand for coffee in China market can also be positively confirmed by the changes in coffee consumption in recent five years. Compared with the coffee consuming countries such as the United States, South Korea and Japan, the average annual growth rate of coffee consumption in China is 27.0 1%, and the demand for coffee in China market is far from saturated.

1.2 market position

1, the number of cafes is growing rapidly.

? The market scale of the whole industry has expanded significantly. Since 20 13, the market scale of China coffee shop industry has shown a trend of rapid growth year by year. In 20 17, the market size of coffee shop industry in China was about 22 billion yuan, up by 14% year-on-year. It is estimated that the market size will reach 40 billion yuan in 2020.

2. "Internet Coffee" was born.

In recent years, domestic Internet coffee, represented by Lian Coffee and Luckin Coffee, has sprung up everywhere. On the one hand, with the strong intervention of capital, the traditional coffee industry has been changed by the Internet. On the other hand, the global coffee giants represented by Starbucks and Costa are forced to change and increase Internet genes. However, Canadian and Japanese "national coffees" have taken the beach in China. In the fierce competition, the original market structure of domestic coffee industry has been quietly broken.

1.3 market size

At present, the coffee market in China is entering a stage of rapid development. According to the prospectus of Luckin Coffee, in 20 18, the per capita coffee consumption in China was 6.2 cups. Compared with developed countries, China's per capita coffee consumption is only 65,438+0.6% of that of the United States. In 20 18, the market size of China's coffee industry was 56.9 billion yuan. With the improvement of people's living standards and awareness of coffee culture, as well as the huge demographic dividend, domestic coffee consumption may be stimulated. It is estimated that the per capita coffee consumption in China will be 10.8 cup in 2023, and the coffee market scale will be180.6 billion yuan.

In terms of per capita consumption, compared with the average annual consumption of 400 cups of coffee in the United States and Japan &; South Korea consumes 200 cups of coffee per capita every year, while China consumes only 5-6 cups of coffee per capita every year. Only counting China's first tier cities, the average annual consumption of coffee per capita is only 20 cups. Therefore, there is still a lot of room for the increment of the domestic coffee market.

As can be seen from the search index in the past six months, the average daily average of Luckin Coffee is 557 1, with an overall year-on-year increase of 94% and an overall quarter-on-quarter increase of 29%. The average daily value of Starbucks is 6477, down 16% year-on-year and 14% quarter-on-quarter. 20 17 Luckin Coffee, which entered the China market, is undoubtedly more competitive than Starbucks, the industry leader, and its market recognition is also improving.

Luckin self-help consumption in the whole process

1, wechat opens the Luckin applet to order coffee, and all the details can be easily completed on the mobile phone;

2. Choose the nearest store: pick up the goods or go to the store for consumption;

3. Be informed of the coffee making time after payment;

4. The applet opens the meal code and takes the coffee directly.

Starbucks advocates the third space, social feeling and service experience.

1, find the nearest coffee shop and queue up to order food;

2. The waiter will ask you what kind of coffee to drink;

3. The waiter will ask you which cup to drink;

4. The waiter will ask you if you want to go with other foods;

5. The waiter will ask your name;

6. The waiter will ask if you have a membership card. Do you want to buy one? If there is a membership card, will the points in it be used this time?

7. The waiter will ask you how to pay the bill;

8. The waiter will ask you if you want a cashier receipt;

9. The waiter will give you the single number and tell you to wait.

Summary: The core values of new retail are online customer acquisition efficiency and comprehensive operational efficiency.

Starbucks has been rooted in China market for many years, and its business scale is very large. Its offline operation mode and accumulated experience depth are beyond doubt. Especially in the efficiency of supply chain and store operation, it is more mature and perfect.

Lcukin, a new retail thinking, does not focus on acquiring customers from offline stores, but can realize the scale and normalization of online customers through small programs or apps. The offline store is just a space for making coffee, and it is the choice of consumers, which is completely different from traditional coffee chain stores. Through the whole process of self-service, a lot of service costs are saved. Including: cashier system cost, cashier training cost for waiters, etc. Waiters hardly need to communicate with consumers, but concentrate on making coffee. Consumers naturally don't pay attention to the so-called service experience, because everything is self-help.

Self-service consumption experience-fluency is experience, convenience is experience, time saving is experience, and choice is experience-is the inevitable result of the continuous improvement of consumer sovereignty in the era of mobile Internet. In the office area where a large number of white-collar workers gather, Luckin has more advantages than Starbucks: white-collar workers care more about time efficiency and detailed experience than ordinary consumers, and also care more about autonomy.

Therefore, based on the new retail thinking, Luckin and Starbucks took two completely different paths in their daily operations. In addition, Luckin is totally against Starbucks.

1.Luckin Coffee has accumulated a large number of users in the previous period, and adopted the social mode of unlimited scenes, allowing users to socialize while drinking coffee "online+offline", which is helpful to increase coffee sales.

The slogan of 2.Luckin Coffee is professional master coffee. The beans used are all made by WBC Italian champions, and the baking period is also the best time limit. The machine used can control the quality. For delivery orders, there is an efficient delivery speed.

3. Efficient production speed and huge store distribution scale make it as convenient for ordinary users to enjoy a cup of fresh coffee as buying a drink. Large orders made by enterprise users can be easily received and delivered efficiently.

1, Luckin Coffee began to win users by issuing coupons and giving gifts. In the month when there are no preferential activities or new products are launched, the number of users will decrease, which is easy to lose some users, which is not conducive to later development.

2. As a "professional master coffee", the quality of master coffee is average, and the main product of coffee beans is only Arabica beans, which is not flexible enough. Young people prefer "fresh" mass products, and young people may be attracted by other coffee merchants.

After business hours, users can only browse the menu and receive the reminder that the store is closed. The user cannot place an order. E-commerce companies like Hungry can't make an appointment for tomorrow's delivery time, and there is no regular daily delivery service like dairy companies.

1, China's per capita coffee consumption is far lower than that of developed countries in Europe and America, which is ridiculously high, so there is huge room for incremental imagination. Moreover, coffee is addictive, so the user's stickiness and repurchase are not a problem. As long as we can educate the market, there is a lot of room for imagination. Everyone will drink coffee in the future, and Ruixing will help China become a big coffee country.

2. In a country as big as China, there will definitely be a national local coffee chain brand. At present, Ruixing is the closest brand. Ruixing seized this point and built himself into such an IP image, which is conducive to future development.

3.Luckin Coffee is not only coffee, but also juice, light food and tea. Gradually expanding the category and flow can effectively increase customer stickiness.

1, China's coffee market is huge, but it takes a long time to cultivate the habit of drinking coffee at the same time in China, and whether you can make a profit during this period is a key to success or failure.

2. By means of advertising bombing, coupon payment, precision marketing, take-away and so on. The traffic is really brought soon, and then the traffic is converted to offline through operation. Once the drainage is unsustainable, the benefits of offline stores will not be brought into play, and finally the store will have to be closed for adjustment. At that time, an avalanche effect may occur.

1.Luckin Coffee already has customers accumulated in the early stage. Having your own APP to get data, you can create an online social space in Luckin Coffee to keep users active, let users know more about coffee, improve the repurchase rate of users, and let users not only use coupons, but also take the initiative to consume.

2. Increase the seasonal development of new products, improve the repurchase rate of young users, and attract new users to buy. Adding an experience culture store and starting a self-help mode will not only help reduce labor costs, but also attract young users and create their own Luckin coffee culture (similar to a concept store).

1.Luckin Coffee has two types of users, ordinary users and enterprise users. For these two types of users, you can add the function of placing orders every other day and regularly delivering goods. Among them, the function of placing orders every other day imitates the appointment time (date selection and delivery time period selection) of hungry e-commerce, and the appointment delivery can be an appointment delivery at a specified time period and date.

2. Do a good job of dual-brand strategy, focusing on leisure deer tea and office Luckin Coffee.

1, for ordinary users: coffee treat, coffee red envelope sharing, meal code sharing, coffee gift, gift cards, etc.

2. Corporate customers: In addition to the service of issuing invoices, we also open corporate accounts to optimize the use of enterprises, increase corporate discounts and retain corporate customers.

3. Fission of new users: develop new users by giving away coffee, treating guests and inviting guests to get coffee for free, and retain users by giving away special edition gift cards and giving them to friends.

Most chain coffee brands that want to beat Starbucks just imitate the fur of Starbucks. With its completely integrated online and offline management mode and brand-new user experience, Luckin Coffee can see that coffee chains such as Ruixing, Starbucks and Man Coffee are completely different and are brand-new species. The new retail opened an unusual road for Luckin Coffee from the edge and achieved good results.

1, do a good job in socializing on the APP, and add functional interfaces such as evaluation sharing/new product evaluation/game saving points redemption to increase the online experience and viscosity of users.

Nowadays, feelings and consumers' support for domestic brands are the main core driving forces for the rise of domestic products. As the first new retail coffee brand in China, Luckin Coffee will have great market competitiveness if it plays such an icon well.

3. Do a good job of dual-brand strategy, each store will keep each other's classic products and expand its own product line. In the scene, Lu Xiaocha will focus on leisure, and Luckin Coffee will focus on office; In the market, Lu Xiao Tea focuses on second, third and fourth tier cities, while Ruixing focuses on first and second tier cities.