Ceramic Mug Group, In the past two years in China, there has been an upstart in the coffee market who claims to be competing with Starbucks, and it is Luckin Coffee.
On May 17, Luckin Coffee was listed on NASDAQ in the United States, and the issue price was determined to be US$17. After leveraging the big cake in the coffee market, this internet celebrity "friend" around him aroused people's curiosity: What kind of brand is Ruixing? Why did you hand in an amazing transcript in such a short time? Professor Zhong Weiguo explained the story of Ruixing Coffee for everyone in the second "Guanghua E Conference" event.
Predecessors paving the way, younger generations innovating, Starbucks and Luckin are holding hands in the
Chinese coffee market
The total global coffee market is about 12 trillion (data in 2018). The United States accounts for about 1/4 and China accounts for 1%. However, the growth rate of China's coffee market in recent years has reached about 18%, compared to only 2% in the world - China has huge room for growth.
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The support of this growth space is the sustained and stable development of the Chinese economy. China's per capita GDP in 2017 was about 7,300 U.S. dollars, in 2018 it was 7,700 U.S. dollars, 2020 is expected to reach 8,600 U.S. dollars, and in 2025 it will reach 11,000-the key point is 10,000 U.S. dollars. From historical data, the consumption behavior of people whose per capita GDP reaches 10,000 US dollars will reflect the group phenomenon of consumption upgrade. With the release of 20% of China's urbanization space (a process of gradually moving from 60% to 80%), especially the new urbanization based on the construction of a modern metropolitan area (refer to the National Development and Reform Commission's "About Cultivating Development" in February 2019 "Guiding Opinions on Modern Metropolitan Areas") will make the consumption upgrade of the population more rapid. The competition between Starbucks and Luckin Coffee is not as fierce as the outside advertised, but at the same time facing each other a large and rapidly growing market. Coffee Research Institute pointed out that by 2020, the capacity of China's coffee market will grow from 70 billion yuan in 2015 to 300 billion yuan. Therefore, how to conquer the city in the future space is a question that every company must think about. Luckin Coffee's simple and rude "Internet + capital + marketing" play has actually helped the entire industry. Many coffee companies want to promote and educate coffee culture in China, but they feel helpless. Luckin's overwhelming propaganda happened to be the largest and still successful coffee market education event. Understanding the background of the times is the key to understanding the current so-called "coffee revolution."
Both Luckin and Starbucks need to face a major social transition closely related to consumers-this is a market opportunity.
