Luckin Coffee Eyes for the US Market, Accelerating Its International Expansion

Luckin Coffee is reportedly planning to enter the US market as early as next year, preparing to beat competitors like Starbucks with its low-priced drinks.

According to insiders, Luckin Coffee’s overseas strategy will be precisely focused on cities like New York, which have a high concentration of Chinese students and tourists, intending to quickly increase brand recognition through these groups. To this end, the company has taken a step ahead, advertising during NBA events to warm up for the upcoming market invasion.

Luckin Coffee plans to replicate its successful experience of promoting affordable coffee in the Chinese market to the US, with plans to launch drinks priced between $2 and $3. This is intended as a low-cost weapon to combat established American coffee chains, aiming to carve out a new territory in this fiercely competitive market.

In response to these market rumors, Luckin Coffee has maintained a low-profile attitude, without giving a direct response.

It’s worth noting that Luckin Coffee’s attempt is not without challenges. In 2020, the company was delisted from Nasdaq due to a financial fraud scandal and was fined up to $180 million. This historical issue undoubtedly adds some uncertainty to its international journey.

Moreover, the competition in the American coffee market is extremely fierce. Starbucks, with its vast network of nearly 17,000 stores across the US, is the market leader. The coffee and donut chain brand Dunkin’ is also not to be underestimated, with more than 9,500 stores. Dutch Bros, listed in New York, has quickly risen with about 900 drive-through coffee shops, achieving an astonishing expansion rate of one fifth last year. Not to mention, from fast-food giant McDonald’s to corner convenience stores, coffee has become an ubiquitous part of daily life, further intensifying the white-hot market competition.

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