Luckin Coffees Digital Transformation: Case Study on the Impact of Digitization in the Coffee Industry

Abstract

This paper examines the impact of digitalization on corporate competitiveness and analyses the digital transformation strategy and implications of the Chinese coffee chain Luckin Coffee as an example. The business model of Luckin Coffee is a new retail model based on new technology. Services are delivered through a mobile app and a network of shops, and goods are sold through third-party digital payment platforms or coupons purchased within the Luckin app, for example. Luckin Coffee's mobile app provides end-to-end customer service, including marketing, customer acquisition, customer management, and billing processes. The research in this paper finds that Luckin Coffee has successfully rebuilt its brand reputation through digital transformation, which has implications for the digital transformation of companies, and that other companies can learn from Luckin Coffee's marketing model and create their own unique and efficient operational models. However, there are some limitations to this paper's research. Companies should improve their digital transformation strategies according to their circumstances and pay more attention to the importance of digital transformation for competitiveness.