Research on the Marketing and Business Operation Model of Chinese Coffee Brands - A Case Study of Luckin Coffee

Abstract

As a rapidly emerging coffee chain brand in the Chinese market, Luckin Coffee has attracted a lot of attention for its low-price strategy and rapid expansion mode. Luckin Coffee's low-price business model realizes the dual goals of price concessions and high-quality products, which challenges the business model and profitability of the traditional coffee industry. Luckin Coffee adopts a unique operation model that makes it stand out in a competitive market. According to the study of Luckin's profitability model and the comparison of the coffee industry, this research analyze the business logic and operation principle behind it. Through low-priced sales, Internet+ model, efficient supply chain management, diversified product portfolio, and rapid expansion of the number of stores, Luckin Coffee has successfully constructed a competitive business model and operation principle, which lays the foundation of its rapid rise in China's coffee market.Meanwhile, there are problems with Luckin Coffee's business model, and this study makes recommendations for its future development.