Big Take Asia The Coffee Shop That's Been Eating Starbucks' Lunch in China
19 snips
Dec 31, 2024 
Rachel Chang, Bloomberg's managing editor for global business in Asia, dives into the remarkable comeback of Luckin Coffee, which has surged past Starbucks as China's leading coffee retailer. She discusses the innovative strategies that fueled Luckin's rise, including automated stores and unique, locally-inspired beverages. The conversation also touches on Luckin's dramatic fall from grace due to an accounting scandal and its resilience in the face of competitors. Can this coffee giant maintain its momentum in China's booming market?
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Luckin's Rise
- K. Oanh Ha and Rachel Chang discuss Luckin Coffee's coconut latte.
- Luckin, despite lacking a Hong Kong store, became China's top coffee seller, outpacing Starbucks.
Luckin's Turnaround
- Luckin's success is partly due to creative drinks like salty cream cheese and tea latte and alcohol-infused coffee.
- Its rapid growth is remarkable, considering its near-collapse in 2020 after an accounting scandal.
Luckin's Founding
- Luckin Coffee was founded in 2017 by Lu Chengyao and Tian Chiyiao, who saw an untapped market in China.
- The average Chinese person drank only three cups of coffee a year, far less than Americans.