Welcome to the Weekly Recap by Momentum Works, where we dissect business news in China and Southeast Asia. On this episode’s agenda: Luckin x Moutai collab, Lummo liquidation, and Indonesia’s plan to ban TikTok Shop.
Luckin, a Chinese coffee company, made headlines by selling in one day more than 5 million cups of an alcohol-infused latte, made in collaboration with Mouitai. Apart from discussing the technology and price of a new drink, we will dive deeper into how Moutai, a well-established brand of premium liquor, benefits from this collaboration, whether this is the first time they are making a liquor-flavored product, and what we can learn from partnership about competitiveness in F&B industry in China.
On Wednesday night news about Indonesia’s plan to ban TikTok Shop shook up the e-commerce scene. The government cites monopolistic activities as the reason for the prohibition. We will talk about how likely such a prohibition is to come into force and how it could potentially impact the e-commerce industry in Indonesia, as well as what is needed legally to make it come true.
Finally, Indonesian start-up Lummo (previously known as Bukukas) applied for voluntary liquidation after receiving more than USD $130 million from various investors, including Sequoia and Jeff Bezos’ VC firm. A SaaS startup originally offering bookkeeping services for SMEs was unable to generate enough revenue. We discuss the challenges of relying on bookkeeping as a core of a model.
Featured material:
The TikTok Shop Playbook | Momentum Works
https://open.spotify.com/episode/0o96zu5t6ZDlfXVSB5KrS6?si=368314592728461f
The Luckin x Moutai partnership that sold 5 mil cups of coffee in one day - The Low Down - Momentum Works
Will Indonesia really ban TikTok Shop? - The Low Down - Momentum Works
