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Luckin Launches Tea

Luckin Tea LaunchesRocketing since blast-off in October 2017, Luckin Coffee is now set to launch a new independent business in the Chinese market.

The new offering is to be called “Luckin Tea“.

Chinese coffee chain start-up Luckin Coffee has announced that to speed up its market expansion, it will launch its Tea Business as an independent brand.

Last April, the Luckin Tea series was initially launched in Luckin Coffee shops and has experienced strong growth and exceeded company’s expectations.

Jian Liu, Luckin Coffee Chief Operating Officer said in a statement that the tea drink outlets aims to complement the existing coffee shops and will help roll out its footprint nationwide.

Luckin Tea will focus on Tier 2 through Tier 4 cities and will initially open in shopping malls.  However, Luckin Coffee stores will focus on Tier 1 and Tier 2 cities and will continue expanding in office locations.

Luckin Tea Launches Luckin app for orderingLuckin Coffee so far currently operates 2,963 stores spread across 40 cities in China. It has plans to open more than 4,500 stores by the end of 2019, making it the country’s largest coffee chain.  When it launched, Luckin Coffee stated that it aimed to displace Starbucks as the preferred brand of Coffee in China and it focussed on a Digital Ordering and Payment App to help it get mass streamlining of transactions to enable massive growth.

Fast Fact: Chinese consumption of coffee products grew at a compounded rate of 15% for the past decade and was estimated to be worth RMB 100 billion (USD 14.2 billion) in 2018.

Burger King Burning Opposition

Flamin’ Hot Idea – Burn That Ad

Fast Food Giant Burger King’s latest app is encouraging users to ‘burn’ rival ads via its latest BK Express mobile app that sees competitor ads engulfed in flames.

In the augmented reality ‘Burn That Ad’ campaign that just launched in Brazil, Burger King lampoons its competitors.  The Burger Giant gets customers to digitally flame their opposition’s ads using the app.  Users point their smartphones at any competitor billboard, magazine ads, discount coupons and others, to enjoy the sight of the competitor ad being ‘burned up’ instantly.

As soon as the flames burn away, the user receives a message on their device screen issuing them of a digital voucher for a “Free Whopper” that can be claimed at the nearest Burger King store.

Ariel Grunkraut, Burger King’s marketing and sales director for Brazil, stated “Technology as a means to provide the best customer experience is one of our main investment targets in 2019. To create the BK Express experience, our exclusive payment technology via mobile phone available all around Brazil, we offer some fun interaction in augmented reality for our brand’s lovers through the app and those using the service also gets a free Whopper“.Burger King app burns opposition

Across Brazil 500,000 Whoppers are expected to be given away.  Burger King has a reputation for creating boundary-pushing ad campaigns and ‘Burn That Ad’ is a clever strategy of turning its rival media investments into ads of their own.

Check out this video and see how it works – Burn the ad

That’s HOT!

Luckin Coffee

Luckin Takes on Starbucks China

According to CBN Data, Coffee sales will top US$43.7 billion in 2020, a 330% jump from 2015 and this seven month old start up is giving Starbucks China a run for their money.

“There can’t be only one brand for China’s coffee market,” said Qian Zhiya Luckin Founder.  Speaking to the media about their market entry in China where Starbucks has dominated (50% market share), she stated firmly, “We are willing to learn from Starbucks’ advantages, from where we can innovate.”

Luckin coffee vs Starbucks

So far, Luckin has opened 809 stores this year that is spread across major cities in China. The British coffee brand Costa has 449 outlets since entering China in 2003 and Starbucks has the lead with 3,124 since entering China in 1999; while Luckin targets to open 2,000 by the end of this year.

Unlike their rivals boasting of Stand Alone stores, Luckin has taken a non-traditional approach of opening their outlets in unusual locations including, hidden inside office buildings or just off busy streets. As of June 44% of Luckin’s locations were dedicated for takeaways and the comany has forged a partnership with courier service provider SF Express offering a 30-minute delivery.

According to the company, in the first seven months alone, total cups sold amounted to 18 million and user retention is 80% in April for stores 3 months or older.  This is primarily achieved by customers ordering via the Luckin Coffee App and accessing deep discounts and promotions such as “buy 2, get 1 free” and “buy 5, get 5 free”.

Luckin recently secured a US$2 billion series A investment.

Watch this space.