Coffee Clash Brewing In China: Startup Luckin Takes On Starbucks
Mohammad Ali (@ChaudhryMAli88) Published January 20, 2019 | 11:36 AM
Beijing, (APP - UrduPoint / Pakistan Point News - 20th Jan, 2019 ) :When Starbucks came to China two decades ago it promised to open a new store every 15 hours. Now a homegrown rival, Luckin Coffee, plans to build a high tech-driven shop every three and a half hours to dethrone the US giant.
The Chinese upstart is burning through millions of Dollars to lure customers with steep discounts, challenging Starbucks' dominance by targeting office workers and students who prefer to have their java on-the-go or delivered to their doorstep.
While Starbucks and British rival Costa Coffee offer lounging spaces for people to work or meet friends, most Luckin outlets are more like "delivery kitchens".
The shops are no bigger than a studio apartment, with no tables, display counters or even cash registers because all payments are made using mobile phones.
Luckin's no-frills approach means consumers pay about a third less for a cup compared to other global brands. A tall-sized latte costs 31 Yuan (around $5) at Starbucks, but only 24 yuan at Luckin.
Customers who walk into one of Luckin's blue-and-white outlets need only spend a few minutes there -- to scan a code and pay for their coffee that has been pre-ordered through the company's smartphone app.
"I like the convenience, there are no long queues, or having to sit alone while your coffee is brewed," said Yu Qian, a financial analyst in Beijing. "The coffee itself is a little sweeter, more like the sweet milk tea that is popular in China".
Luckin's aggressive strategy mirrors tactics used by other Chinese startups that have dislodged Western brands from one of the world's top consumer markets.
"The big advantage for us of having pickup stores versus the big stores is that in terms of rental costs, we pay significantly less than our competitors," Luckin's chief strategy officer, Reinout Schakel, told AFP.
After only a year in business, the company announced plans earlier this month to open2,500 outlets by the end of the year, which would push its total store strength to 4,500. By comparison,Starbucks has some 3,600 stores across the country.
Recent Stories
UHS declares MBBS first prof, MS urology exam results
Separate coaches to be hired for ODIs, Test and T20I formats
Finance Minister calls for reforming tax system to improve country's economy
PM calls for joint efforts to check smuggling, power theft
Infinix Unveils a Vibrant New Chapter with Wahaj Ali: The face of Infinix NOTE 4 ..
PM makes two more appointments in his team
Terrorists of Shangla suicide attack will be brought to justice: Interior Minist ..
Applications Open for 6th Cycle of Start-up Incubation under the National Expans ..
Join vivo's "Light it Up" Social Media Contest in Ramadan to Win vivo V30 5G
Pakistan v New Zealand T20I series: Tickets to go on sale from today
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 29 March 2024
Today Gold Rate in Pakistan 29 March 2024
More Stories From World
-
Press Release from Business Wire: Dubai Electricity and Water Authority PJSC
7 seconds ago -
Press Release from Business Wire: Blue Yonder
12 seconds ago -
Nations fail to reach pandemic accord: talks to resume April
20 minutes ago -
Ecuador prison riot leaves three dead, six injured
20 minutes ago -
Israeli air strikes kill 42 in North Syria
30 minutes ago -
Russia says UN sanctions on N.Korea have 'not helped' improve regional security
40 minutes ago
-
Russia faces backlash as veto ends UN's N. Korea sanctions monitoring
1 hour ago -
5.6-magnitude quake hits 126 km NNW of Kimbe, Papua New Guinea -- USGS
1 hour ago -
German collector turns back time as clocks go forward
1 hour ago -
Over 70 kg of raw opium seized in central Myanmar
2 hours ago -
45 injured in train-bus crash in NW Cambodia: police
2 hours ago -
Romania finds possible drone fragments near Ukraine border
2 hours ago