Luckin Coffee is planning to expand into the U.S. and other international markets as it faces tough competition at home in China. The company's CEO, Guo Jinyi, highlighted the potential of overseas markets but acknowledged the challenges they present. Luckin aims to launch in the U.S. as soon as next year, focusing on cities with a high concentration of Chinese students and tourists, like New York. The strategy includes offering drinks at lower prices to attract customers.
• Luckin recently opened eight new stores in Singapore, bringing its total there to 45, despite initial losses.
• The company reported a quarterly revenue increase of 41.4% year-on-year, reaching 10.8 billion yuan.
• Same-store sales in China fell by 13.1%, reflecting fierce competition and price sensitivity among consumers.
• Starbucks China is also struggling, with a 14% decline in comparable store sales.
This expansion is crucial for Luckin as it seeks to regain trust and improve its brand image after past scandals. The U.S. market offers new opportunities, but the company must navigate a competitive landscape and adapt its strategies accordingly.
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