Korean media: Luckin Coffee, which defeated Starbucks in China, is now challenging Starbucks' "home ground"!

On July 28, Korean media "Today's Finance" published an article stating that the Chinese coffee chain Luckin Coffee has opened its first store in New York, USA, and is beginning to enter the North American market. Luckin Coffee, which has surpassed Starbucks to become the number one in China, plans to accelerate its global market expansion starting from the New York branch.

According to Bloomberg, the Luckin Coffee store located on Sixth Street in Manhattan, New York, was crowded with customers from the day it opened, with many people ordering discounted drinks for $1.99 through the Luckin APP.

This move is seen as a direct challenge to Starbucks, which is facing declining sales in the United States. In the Chinese market, local brands are pressuring Starbucks with reasonable prices and fast ordering systems.

Before officially opening, Luckin Coffee operated pop-up stores, held tasting events and lottery activities, and the official Instagram account in the United States has already gained more than 2000 followers, while also conducting marketing based on SNS.

The company went through a crisis in 2020 when it was delisted from the NASDAQ due to an accounting fraud scandal, but after changes in management and restructuring, the company surpassed Starbucks in 2023 and became the largest coffee chain in China.

Currently, Luckin Coffee operates more than 24,000 stores worldwide, and this entry into the U.S. is considered the starting point for future expansion in the North American market.

Starbucks has not yet commented on Luckin Coffee's entry into the U.S. market.

Since the outbreak of the pandemic, Starbucks' position in the Chinese market has weakened, and in the U.S., Starbucks is trying to recover sales by improving service speed and expanding staff.

The Luckin Coffee APP offers mobile ordering and in-store pickup, points, and free coffee lottery functions, providing a similar user experience to the Starbucks APP, and locking in consumers with lower prices.

At the same time, Luckin Coffee registered trademark rights in South Korea in 2021, but has not yet launched full-scale activities such as opening stores in South Korea.

Original article: https://www.toutiao.com/article/1838867142469707/

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