The Rise and Fall and Rise Again of Luckin: A Chinese Coffee Success Story

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This chapter delves into the journey of Luckin, a Chinese coffee chain that quickly rose to prominence by offering premium products at affordable prices. Despite facing an accounting scandal, Luckin managed to bounce back through digital innovation and cost-effective strategies, hinting at a potential revival.

China’s Luckin Coffee is the nation’s top coffee retailer, overtaking even Starbucks. That would be notable itself, but less than 4 years ago the company filed for bankruptcy, making its comeback even more unlikely. The turnaround is in part thanks to the chain’s automated stores, cut-price deals and innovative drinks that appeal to local tastes.

Today on The Big Take Asia, host K. Oanh Ha speaks with Bloomberg’s Rachel Chang on how Luckin managed to turn around its failing business to overtake Starbucks, and asks whether it can hold on to its success as coffee takes off in China, and more rivals emerge.

Further listening: What Does China’s Economic Slowdown Mean For the Communist Party?

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