Luckin Coffee launches Vending Machines in an attempt to increase their share in the rapid growth of the coffee market in China. Luckin is now one of the largest and most quickly expanding brands in the market where they now operate more than 4,500 store-based outlets. They are and are now increasing market share by expanding into the vending machine aspect of the Coffee market.
Luckin Coffee expands into vending machines as part of a huge equity deal
Founder and CEO Qian Zhiya states that this new strategy will allow them to get closer to consumers. They will not be restricted by the license approvals. In what could be yet another first in China Luckin’s vending machines will serve freshly brewed drinks as well as food.
Luckin Coffee launches new vending machines
Just recently, Luckin Coffee also launched a share placement and a convertible bond with a combined worth of US$821 million early January 2020. That is according to a Reuters report which also mentioned that the proceeds will be used to open more stores and invest in sales and marketing of the brand.
Luckin Coffee Share Price
Luckin has recently surpassed Starbucks China, in terms of outlets count within the country. Recently we reported on the incredible growth of Luckin Coffee and their determination to take on their key rival Starbucks. Luckin are now operating more than 4,500 stores and growth is continuing.
Luckin Coffee’s business model focuses primarily on a coffee delivery and pickup style of business. The venture into vending machines is seen to be a broadening of this model. They have achieved great brand recognition and attachment in the under 30’s demographic.
