No competition with Luckin :
$Luckin Coffee Inc.(LKNCY)$Luckin Coffee has experienced significant growth, expanding rapidly in China and venturing into international markets, with a focus on value-driven coffee and a hybrid operating model.
Key Growth Highlights:
Rapid Expansion:
Luckin Coffee has rapidly expanded its store network, boasting over 21,000 stores nationwide by the end of 2024.
Hybrid Operating Model:
Luckin leverages a hybrid model of self-operated and partnership stores to minimize capital requirements and enable swift growth.
International Expansion:
Luckin has launched stores in Singapore and Malaysia, with plans for further international expansion, including a potential US launch.
Value-Focused Strategy:
Luckin differentiates itself with competitive pricing and a grab-and-go model, contrasting with Starbucks' focus on cozy environments.
Strong Financial Performance:
Luckin has demonstrated strong revenue growth, with a projected 37% year-over-year increase for 2024, reaching CN¥34.1 billion.
Store Count:
In 2024, Luckin is expected to operate a total of 22,549 stores, including those in Singapore and Malaysia.
Partnerships:
Luckin has partnered with the Houston Rockets, running advertisements during NBA games to build brand recognition.
Roastery Expansion:
To support its growing store network, Luckin has opened a new 570,000sq ft roasting facility in Suzhou City, Jiangsu.
Supply Chain:
Luckin signed a Memorandum of Understanding (MoU) with the Brazilian Trade and Investment Promotion Agency (ApexBrasil) in June 2024 to purchase 120,000 tons of coffee from Brazil over the next two years.
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