I never thought that I would copy another Luckin and use Luckin's gameplay to "kill" Luckin! This is the true intention of Cudi in the coffee world! Expand 6,000 stores in 10 months, with an average of nearly 1,000 stores opened every month, and the soaring trend has far exceeded Luckin, why is Cudi so good?
As we all know, Cudi and Luckin have a deep relationship! However, Cudi did not tear off the label of the founding team of Luckin, but instead adopted the strategy of free-riding, which continued Luckin's low-price marketing style and almost fought hand-to-hand with Luckin!
First of all, fight a price war and compete with Luckin for traffic. Luckin adopts the brand's popular product strategy, and Cudi follows closely, you are born coconut latte, you are born coconut latte, you are born star latte, and even the price is lower than Luckin in the same period, the main thing is a flat replacement.
Then, in the selection of the site, we don't look at the traffic gathering place or the business district, but look at where the competitor Luckin is. The main focus is to use a more affordable price to grab the opponent and cultivate a good target customer group.
The last resort is even more absolute, encircling the Luckin market with a lower price strategy. Luckin 9.9, it is 8.8, it seems to be only one dollar cheaper than Luckin, but in the sinking market, this dollar is really fragrant!
That's not all, there is another reason why Cudi can expand wildly, and that is its affiliate franchise model.
Most brands adopt the franchise model, that is, they directly charge a franchise fee. The risk is all passed on to the franchisee, which is completely profitable for the brand.
Cudi adopts a pure franchise strategy, which does not charge a franchise fee and charges a service fee according to the gross profit of the store. From the perspective of franchisees, this franchise model is more deeply linked to their own interests, and the willingness to join will be stronger.
Even, Cudi also proposed a series of subsidy strategies to support franchisee stores. For example, each store will be exempted from a service fee of 100,000 yuan. If the store incurs a loss, Cudi will make up the difference. With a set of combination punches, Cudi successfully leveraged a large number of Luckin franchisees and entrepreneurial novices, and finally realized the rapid number of stores.
Do you understand the bosses? Cudi attracts consumers through low-price strategies, grabs traffic and grabs the market, and at the same time earns the difference in the price of equipment and raw materials through the opening of stores by associates. At the same time, this part of the profit is used to promote the subsidy policy to attract more affiliates to open stores.
In the future, the competition between enterprises and enterprises is no longer the competition between enterprises and enterprises, but the competition between the industrial ecology formed by one enterprise and the industrial ecology formed by another enterprise.
On the other hand, the owners of many of our traditional enterprises are still using the traditional asset-heavy thinking and price difference thinking to expand, spending money to open a store, and then quickly invest in the next store after returning to the capital, and finally open one or two hundred stores after a busy life. It is a fool's dream to want to be a thousand-store chain.
The boss's thinking is the ceiling of the enterprise, so the bosses must learn more Xi excellent industry models and cases, learn Xi most cutting-edge business knowledge, open their own ideas, and keep up with the perspective of the times.
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