The Financial Coconut Podcast

Is Mixue, Luckin or Chagee the BEST Chinese Beverage IPO? [Chills 222 ft Willie Keng & Lee Kok How]

Jun 25, 2025
Guest
Willie Keng (Wee Lee King)
Guest
Lee Kok How
In this engaging discussion, guests Lee Kok How, an economist and analyst for the South China Morning Post, and Willie Keng, founder of DividendTitan.com, explore the dynamic landscape of China's beverage giants. They dissect the rapid growth strategies of Mixue, Luckin, and Chagee, revealing how data-driven approaches and franchise models are reshaping the market. The conversation delves into competitive tech advantages, the potential risks of overexpansion, and the global aspirations of these brands in a $46 billion industry. A must-listen for investors and beverage enthusiasts!
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INSIGHT

Three Distinct Market Lanes

  • Mi Xue, Luckin and Cha Ji occupy distinct lanes: price, convenience, and premium respectively.
  • Each brand targets a separate customer niche which explains their coexistence and rapid scale in China.
ADVICE

Prioritise Margins And Store Mix

  • Focus on margins and ability to scale efficiently when evaluating Chinese F&B chains.
  • Track same-store-sales, gross and net margins and store geography to judge sustainable growth.
INSIGHT

Mi Xue's Franchise-Led Revenue Model

  • Mi Xue reports B2B revenue by selling supplies to franchisees rather than end-consumer sales.
  • That accounting difference makes its revenue look different from Luckin and Cha Ji despite huge end-customer volumes.
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