This is how China always breathes competition and jumps to the bottom line. After twenty years of the presence of the famous American Starbucks cafes in China and the spread of Western coffee culture, a strong competitor can expand and gradually withdraw everything in his favor within one year. Just ... And it is the Chinese Lukin cafes that officially started in January 2018 with ambitious capacity in the world. A few days ago, Luken applied to three international banks Credit Suisse, Goldman Sachs and Morgan Stanley to manage their subscription in the United States of America between May and July 2019 on the Stock Exchange. New York Commercial, and let us know through the following points about this emerging competitor Coming from Dragon Country: -
First ... because every American should be as large as it deserves, Starbucks has opened its largest branch in the world in the Chinese city of Shanghai on an area of 30 thousand square feet ... while Lukin understood the message and deliberately competition Through small stores in the heart of the largest densely populated places in the world in China, where students, factory complexes and highly consumed markets were present, providing initial services for all and free offers for their quality products competing with Starbucks
Secondly ... Lukin has about 2000 branches in 30 Chinese cities and seeks to excel about 4,500 branches by the end of 2019 ... and reach a total of 7000 branches by 2022 all over China, while Starbucks that indicated Due to the slowdown in its business in China during the past year, it has 3,600 branches in about 140 Chinese cities and is seeking to add 2,100 more branches by 2020, as it already fears prey to Lokin for the next three years
Third ... Because adults tend to interact with each other, Starbucks has resorted to cooperating with Alibaba, the e-commerce giant in China, to raise the pace of requests for its products, while that did not shake Lukin, who cooperated with the Internet giant Tencent, the Chinese competitor to Alibaba, because Lukin ads target the middle class, so you can get the first cup of coffee for free. It also supports the free offers of Chinese Huawei phones. In return, Lukin does not care much about advertising on the American iPhones used in China.
Fourth ... Starbucks orders in the United States through its application represent only about 10% of the total applications, while there is no cash payment system in Lukin in China, everything is done online via inside or outside branches Lukin, who in one year has managed to do what Starbucks has done in China in the last twelve years!
Fifth ... the irony appears in Lukin's interest in displaying her trademark in English and not Chinese characters in order to support the idea of safety and quality that distinguishes Western products, despite the fact that Lukin is originally a local Chinese product, and that Lukin prices in China are cheaper About 30% of its American competitor Starbucks, where the cost of one cup for the wok begins at about $ 1.4, while the Starbucks cup starts at about $ 2
Sixth ... Lukin supported by the Singapore Sovereign Fund recorded losses of about $ 120 million in its first year 2018 towards its pursuit of three things which is ... proving its right to exist and compete ... and intensive spread in the largest A consumer market in the world ... and achieving growth jumps that crush any non-national competitor on Chinese soil and eventually acquire it ... This is characteristic of startups in major countries, as it is a successful experience ...
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