#记录我的2024#这段时间, the price war in the coffee market can be said to show a very special trend of differentiation, on the one hand, one of the initiators of the price war, Luckin has begun to shrink the range of nine pieces of nine, on the other hand, Cudi and Starbucks have begun to increase their entry into the game, in this case, why did Luckin suddenly withdraw?
1. Luckin nine pieces and nine shrinkage again?
According to a report by Beijing Business Daily, netizens: "Luckin with more than 9.9 has no soul" and "I drink it without 9.9, who made Luckin my life-sustaining coffee".
#瑞幸9.9 yuan activity shrank again# rushed to the hot search. According to reports, Luckin Coffee released a quarterly report on the evening of April 30. According to the first quarterly report, Luckin Coffee's revenue was 6.278 billion yuan, a year-on-year increase of 41.5%, and the net loss was 71.42 million yuan, compared with a net profit of 564 million yuan in the same period last year.
During this period, Luckin Coffee's 9.9 yuan activity gradually shrank, causing concern. In February this year, the topic of #瑞幸9.9 yuan a cup of activity shrinking # was on the hot search. In the first working week after the Spring Festival, many migrant workers found that the original "9.9 yuan" coffee on the home page of the menu was gone, and a "9.9 yuan coffee poke me Zhou Zhou Ling" section appeared in the lower half of the home page.
According to the Red Star Capital Bureau, at present, there are only 5 products left in the weekly 9.9 area of the Luckin Mini Program, canceling options such as raw coconut latte, velvet latte, and thick American, and adding coffee-free orange C iced tea and grapefruit C iced tea.
In addition to narrowing the range of options, many users on social media said that Luckin's 9.9 yuan coupon is not available in some stores. The Red Star Capital Bureau opened the Luckin applet and found that in Chengdu, Sichuan, there are indeed some stores that cannot use the 9.9 yuan store celebration coupon.
However, not long ago, "the wind of 9 pieces of 9 finally swept up to Starbucks" was on the hot search. Various coupons such as "15 yuan off 70 yuan", "3 cups of 55.9 yuan", and "2 cups of 45.9 yuan" have also appeared.
2. Why did Luckin withdraw?
Luckin Coffee, as a leader in China's local coffee chain brands, has rapidly occupied the market with its low-price strategy in recent years, and has once become a disruptor in the coffee industry. However, Luckin recently announced that it would adjust its price strategy and raise the price of the originally very competitive "nine yuan nine", which has attracted widespread attention in the market.
First of all, the shrinkage of Luckin Coffee's "Nine Pieces Nine" preferential campaign surprised consumers, but from the perspective of business logic, it was an expected adjustment. The campaign was originally designed to quickly expand market share, use price advantages to attract a large number of customers, and thus build brand recognition and spending habits in a short period of time. However, maintaining this low-price strategy for a long time means huge cost pressures even for Luckin, which has a strong supply chain and economies of scale. In a highly competitive market environment, the stores that choose "nine pieces of nine" have to operate carefully within the meager profit margins, and any management omissions or cost fluctuations may lead to losses, which is undoubtedly a severe test of the company's sustainable profitability.
Secondly, Luckin Coffee has successfully built a huge sales network and customer base through large-scale expansion and marketing strategies in the early stage, and achieved economies of scale. Economies of scale mean that unit costs will gradually decrease as the scale of production expands, which provides Luckin with the confidence to increase prices. On the one hand, the large customer base has brought a stable income stream to Luckin, and even a small price increase will not lead to a large-scale loss of customers, and on the other hand, the supply chain optimization and operational efficiency improvement have enabled Luckin to maintain a certain profit margin even after price adjustments. Therefore, adjusting the price strategy in a timely manner, withdrawing from the aggressive price war, and instead pursuing a healthier profit structure is the inevitable choice of Luckin as an industry leader.
Third, in the years of development, Luckin Coffee has formed a relatively stable user group. These users have a high degree of recognition for the quality, taste and service of Luckin Coffee. Therefore, even if the price of Luckin Coffee has increased, these users are willing to continue to choose Luckin Coffee. In addition, Luckin Coffee has also improved the quality and taste of its products through continuous innovation and upgrading, and further enhanced the stickiness of users. This kind of user stickiness makes Luckin Coffee have a strong advantage in the market competition. At the same time, Luckin Coffee has also clarified its market positioning, that is, the mid-to-high-end coffee market. Through the price increase, Luckin Coffee can better match this market positioning and enhance its brand image and competitiveness.
Fourth, the "withdrawal" of Luckin and the active entry of brands such as Cudi and Starbucks together constitute a scene of dynamic changes in the coffee market. Cudi Coffee has entered the fray with more aggressive promotions such as "Nine for Nine for All Products" or even "Eight for Eight", showing its determination to try to quickly seize the market. Starbucks, on the other hand, has adopted a more robust market strategy with its high-end brand image and diversified product line. These different market behaviors reflect the strategic differences of different enterprises in the face of the same market environment.
From a macro perspective, market changes and choices are based on a comprehensive consideration of consumer demand, cost structure, brand positioning and future growth potential. Luckin's strategic adjustment is not only a reflection on the aggressive expansion strategy in the past, but also a layout for sustainable development in the future. The positive actions of new brands such as Cudi are to see the huge potential for the growth of the coffee market, hoping to quickly open the market and accumulate a user base through short-term price advantages. Starbucks' steadiness reflects more of its self-confidence and long-term planning as an industry giant.