Current location:Earth Explorer news portal > politics
Luckin surpasses Starbucks in China in annual sales
Earth Explorer news portal2024-05-08 09:24:12【politics】1People have gathered around
IntroductionChina's domestic coffee chain Luckin surpassed Starbucks in annual sales last year, taking the coffe
China's domestic coffee chain Luckin surpassed Starbucks in annual sales last year, taking the coffee crown in the Chinese market for the first time, said Securities Daily on Monday.
Luckin's financial report showed that the company realized 24.9 billion yuan ($3.46 billion) in total net revenue in 2023, surged 87.3 percent from a year earlier. Based on GAAP accounting rules, its operating profit hit 3.03 billion yuan last year, more than double that of 2022.
In the Chinese market, Luckin's annual sales reached 24.86 billion yuan in 2023.
Luckin has become the largest coffee chain in the Chinese market thanks to the Chinese coffee consumer changing as coffee has transformed to a mass consumer good from a niche and commercial consumer good, said Lai Yang, a member of the expert committee of the China General Chamber of Commerce.
Luckin's lighter store format is better able to adapt to the new change than Starbucks, Lai said.
China's coffee market was quickly developing and with more brands joining, the competition in the country's market will become more intense, said Guo Jinyi, chairman and CEO of Luckin Coffee.
By the end of 2023, Luckin's store number surged 97.8 percent year-on-year to hit 16,248, including 10,628 self-operated stores and 5,620 partnership stores.
One of Luckin's rivals, Cotti Coffee, announced that its store number reached 7,000 across the country in February.
The total Chinese branded coffee shop market exceeds 50,000 stores – making it the largest in the world, said a report released in Dec 2023 from Allegra World Coffee Portal, a global coffee market research provider.
Sinking markets and overseas markets are becoming the new direction of Luckin's strength.
In 2023, the number of Luckin's stores in Singapore reached 30. In the future, Luckin will continue to develop overseas markets, said Guo Jinyi at the company's third quarter 2023 results meeting.
With the intensification of competition in China's coffee market, Luckin will continue to increase the number of stores in high-tier cities and accelerate the expansion of sinking markets through the partnership model to further expand market share, Guo said.
In the long-term, the sinking market will multiply the market capacity to the country's coffee market, but in the short-term, with the continuation of the price war and the emergence of a large number of coffee stores, the competition in the sinking market will intensify, Lai said.
Moreover, some coffee brands have not yet had enough loyal consumer groups in the sinking market and the emergence of a large number of new brands would be easy to exacerbate the risk of consumer diversion, Lai added.
Address of this article:http://sudan.whetstonetavern.com/article-82a199904.html
Very good!(457)
Previous: Mississippi ex
Related articles
- Lok Sabha elections 2024: Why Modi and BJP face strong resistance in south India
- Masters stars' adorable children take over the course on the eve of the tournament
- The Golden Bachelor couple Gerry Turner and Theresa Nist are getting a divorce
- Video shows Victim Support worker 'bragging' about smacking his children
- Met Gala no
- Bridgerton fans are all saying the same thing about season 3's costumes as new trailer drops
- James Corden FINALLY gets approval to demolish his Oxfordshire home after months of delays
- Sergio Aguero's iconic title
- Luis Miranda Jr. reflects on giving, the arts and his son Lin
- HKFP Lens: Past Macau meets present in Portuguese photographer Gonçalo Lobo Pinheiro's images
Popular articles
Recommended
From flooding in Brazil and Houston to brutal heat in Asia, extreme weather seems nearly everywhere
Jurgen Klopp insists Liverpool's 2
Man United fan Mark Goldbridge's x
Man United legend Andy Cole accuses Mikel Arteta of 'mugging off' out
Minnesota ethics panel to consider how to deal with senator charged with burglary
Pep Guardiola is spotted wearing a £1.1MILLION watch while managing Man City against Real Madrid
Ellie Leach breaks down in tears over her cheating ex
What kind of cancer did O.J. Simpson die from?
Links
- Mainland spokesperson rebukes DPP for selling out Taiwan people
- Xi extends congratulations to National University of Defense Technology on 70th anniversary
- Capitals' Nick Jensen is conscious and alert after being stretchered off the ice
- Xi calls on Shaanxi to write new chapter in advancing Chinese modernization
- Policeman killed in explosion in NW Pakistan
- Xi: Advance prosperity of Chinese culture
- Interview: U.S. discriminatory subsidies disrupt NEV supply chain: expert
- With so many prospects playing well in the minors, Orioles GM has some tricky decisions ahead
- Top leadership hails efforts in flood control
- Xi's vision can serve as pillar of multilateralism