China Luckin Tea Upgraded to Independent Brand Operation
In China, a lot of startups in service and catering industry have grown up rapidly. Meanwhile, Luckin Coffee show its advantages to expand its markets around China in short a few years. Recently, a news about Luckin Coffee as Luckin Coffee, a Chinese takeaway chain, said on Tuesday that it has turned Luckin Tea into an independent brand, running its own business and plans to use franchising to expand its scale. That is wonderful and congratulation to them.
Luckin Tea (Xiaolu Tea)
The coffee chain operator Luckin Coffee said that the new Xiaolu tea product was launched in April and is expected to open more stores, expecting this product to seize the market share of China’s purely hand-made tea.
Liu Jian, chief operating officer of Luckin Coffee, said “the company’s tea products have been well received since its launch.” He added “They invited ‘partners’ different from traditional franchises and licenses to expand their chain stores with zero franchise fees and digital operations, so that control service and product quality to reduce investment risk.”
The new Luckin Tea shops will have its own logo, store layout and application, and will carry out more leisure consumption in China’s third, fourth and fifth tier cities. Their various products include about mainly 30 kinds of tea-based drinks, as well as coffee and snacks.
In my opinion
Actually, at the present, catering and service industries competition in China is very tough and intense because of so many famous foreign brand entering into China markets such as Starbucks, KFC, McDonald’s, PizzaHut and so on. Well, we may find except exquisite and delicate beverages and snacks in shops, they also roll out so many attractive souvenirs and limited edition with brand logo such as stainless steel water cup, carbon steel key ring and son on. This is really smart marketing way to help them spreading brand, meanwhile more clients buy-in. If Luckin Coffee and future Luckin Tea adopt this method, I think it could be more strength to compete with others to seize the market and retain more fans in same domain.