Research on the Business Model of Luckin Coffee Under the Background of New Retail

Abstract

The term “new retail” first appeared in 2016, when Ma Yun, the co-founder and former executive chairman of Alibaba Group, put forward the concept in his speech. Since then, “new retail” has become a hot word and means that traditional e-commerce has begun to change into new retail. The new retail concept and development mode has brought a great impact on the development of the traditional retail industry, and also opened up a new way for its development. Since its birth, the implementation of the concept has brought the most direct impression to the public that a variety of unmanned retail experience stores have sprung up on a large scale nationwide. The experience stores take mobile payment and face recognition as the development basis, and show the concept in front of the public more intuitively, so that people can understand the concept of online payment and offline experience better, helping new retail win a lot of markets. This article will focus on the exploration of Luckin Coffee as a new retail coffee in terms of business model. Compared with the traditional coffee mode, the new retail coffee breaks the shackles of the physical space of the traditional coffee shop with the help of the Internet and meets the coffee consumption needs of users in multiple scenarios. At the same time, Luckin Coffee can accurately portray users and carry out targeted marketing through the data about consumption frequency and period of ordering coffee and light food category retained by users in the mobile app. Operation management, intelligent replenishment and scheduling and membership system establishment will be determined by the big data system of Luckin Coffee. The thesis makes an introduction of the realization means and profit analysis of Luckin Coffee’s new retail mode and briefly summarizes the reference significance of Luckin Coffee for other new retail industries.