Current location:Earth Edges news portal > opinions
Luckin surpasses Starbucks in China in annual sales
Earth Edges news portal2024-05-21 11:51:48【opinions】1People have gathered around
IntroductionChina's domestic coffee chain Luckin surpassed Starbucks in annual sales last year, taking the coffe
China's domestic coffee chain Luckin surpassed Starbucks in annual sales last year, taking the coffee crown in the Chinese market for the first time, said Securities Daily on Monday.
Luckin's financial report showed that the company realized 24.9 billion yuan ($3.46 billion) in total net revenue in 2023, surged 87.3 percent from a year earlier. Based on GAAP accounting rules, its operating profit hit 3.03 billion yuan last year, more than double that of 2022.
In the Chinese market, Luckin's annual sales reached 24.86 billion yuan in 2023.
Luckin has become the largest coffee chain in the Chinese market thanks to the Chinese coffee consumer changing as coffee has transformed to a mass consumer good from a niche and commercial consumer good, said Lai Yang, a member of the expert committee of the China General Chamber of Commerce.
Luckin's lighter store format is better able to adapt to the new change than Starbucks, Lai said.
China's coffee market was quickly developing and with more brands joining, the competition in the country's market will become more intense, said Guo Jinyi, chairman and CEO of Luckin Coffee.
By the end of 2023, Luckin's store number surged 97.8 percent year-on-year to hit 16,248, including 10,628 self-operated stores and 5,620 partnership stores.
One of Luckin's rivals, Cotti Coffee, announced that its store number reached 7,000 across the country in February.
The total Chinese branded coffee shop market exceeds 50,000 stores – making it the largest in the world, said a report released in Dec 2023 from Allegra World Coffee Portal, a global coffee market research provider.
Sinking markets and overseas markets are becoming the new direction of Luckin's strength.
In 2023, the number of Luckin's stores in Singapore reached 30. In the future, Luckin will continue to develop overseas markets, said Guo Jinyi at the company's third quarter 2023 results meeting.
With the intensification of competition in China's coffee market, Luckin will continue to increase the number of stores in high-tier cities and accelerate the expansion of sinking markets through the partnership model to further expand market share, Guo said.
In the long-term, the sinking market will multiply the market capacity to the country's coffee market, but in the short-term, with the continuation of the price war and the emergence of a large number of coffee stores, the competition in the sinking market will intensify, Lai said.
Moreover, some coffee brands have not yet had enough loyal consumer groups in the sinking market and the emergence of a large number of new brands would be easy to exacerbate the risk of consumer diversion, Lai added.
Address of this article:http://nicaragua.fivesixgroup.com/news-04a199960.html
Very good!(571)
Related articles
- Strictly star Giovanni Pernice's former partner Rose Ayling
- Reggie Yates' fans send heartfelt congratulations after he delightedly shares baby news
- President Lula has set Brazil on a new diplomatic course
- Rihanna showcases her impeccable style in a quirky fur coat as she secures front
- Shooting injures 2 at Missouri high school graduation ceremony
- Judge to hear motion to dismiss Travis Scott from Astroworld lawsuit
- Thailand to charge entry fees for international traveler from June
- Hilarious moment Moto3 rider accidentally jumps onto a rival's bike mid
- Mystery artist who erected signs comparing pothole
- National cultural parks enshrining Chinese ethos
Popular articles
- French sports minister calls for sanctions after Monaco player tapes over anti
- Commanders hire Dave Gardi as senior VP of football initiatives
- Victoria Beckham shows off her £300 mobility scooter while out with husband David
- New rules for Pregnant Workers Fairness Act include divisive accommodations for abortion
Recommended
I was 'brokefished' by my friend for £400
India dubs U.S. statement on new citizenship law as unwarranted
The WEF’s chairman is still alive and well, despite claims online
Civil War viewers are left stunned by Jesse Plemons 'dead
Nuggets blow 20
Tourism market expecting holiday boom
Foreign journalists visit exhibition on Chinese civilization
Missing Kansas women confirmed dead, kids safe, 4 charged with kidnapping and murder
Links
- Hezbollah official killed, 3 civilians injured in Israeli strike on Lebanese village
- Emission capping in focus as scientists predict hotter 2024
- Feature: Surinamese villagers enjoy electricity supply thanks to eco
- Feature: How Chinese are helping Suriname turn around its farming fortunes
- Premier calls on Europe to provide fair business environment
- Washington's drug slur on Beijing slammed
- Beijing calls for restoring dialogue
- Book on Xi's Discourses on China's Manufacturing Strength Published
- Boss apologizes for UK city's bankruptcy
- Maduro expresses faith in BRI, Huawei