The Development History of Luckin Coffee

The development history of Luckin Coffee is as follows:

Lejin coffee was founded by the money of the original group. The first store opened in June 20 17, and was put into trial operation in Beijing, Shanghai and other cities 1 3 on June 20 18. After four months of running-in of products, processes and operating systems, 525 stores were laid out. During the trial operation, Luckin Coffee completed about 3 million orders, sold about 5 million cups of coffee, served more than 6.5438+0.3 million users, and announced its official business on May 8.

On April 18, Luckin Coffee APP ranked first in the free list of delicious food in Apple's mobile app store. On July 1 1, Luckin Coffee announced that it had completed a round of financing of US$ 200 million, with a post-investment valuation of US$ 10 billion (involving Tathagata Capital, Joy Capital, GIC and Junlian Capital). On August 1 day, Luckin Coffee announced its entry into the light food market.

On September 6th, Tencent and Luckin Coffee announced a strategic cooperation. The two sides will give full play to their respective advantages, and jointly explore the application transformation of big data, mobile Internet, artificial intelligence and other technologies in offline scenes and the intelligent marketing of WeChat applets, so as to help Luckin Coffee build a "smart retail" solution.

12 12, Luckin Coffee announced that it had completed the $200 million Series B financing with a post-investment valuation of $2.2 billion (Joy Capital, Dacheng Capital, GIC, CICC and other participating companies); 18 On February 25th, Luckin Coffee New World Daimaru Department Store officially opened, announcing the birth of the 2000th store, which also marked the completion of the opening plan of Little Blue Cup in 20 18 one week ahead of schedule.

In the first three quarters of 2065438+2008, the revenue was 375 million, the cost was 808 million, the expense was 424 million and the loss was 857 million. 12 On February 28th, foreign media reported that Luckin Coffee is in preliminary negotiations with overseas investment banks, and the final possible listing destination is Hong Kong or new york. Luckin Coffee has registered Luckin Coffee (Hong Kong) Co., Ltd. overseas; On October 7th, 2065438+2009/KLOC-0, Reinout Schakel was appointed as the company's chief financial officer and chief strategy officer, reporting to CEO Qian.

Why are many people not optimistic? So why don't many people around you think highly of Luckin Coffee? The reasons are mainly concentrated in the following aspects:

1. Expand market share by burning money, then raise money, and then continue to burn money.

Then once the financing is not smooth, it will directly affect Luckin Coffee's market subsidy strategy, so will it become another OFO?

2. Serious losses

If an enterprise obtains 2C traffic through subsidies and considers going public, it is because of the demographic dividend background in China that someone paid the bill in the overseas capital market before 20 18; Then at 20 18, especially after the second half of the year, the valuation of overseas capital market 2C showed an obvious inflection point. If an Internet company cannot have positive free cash flow or reduce its loss exposure, the capital market has gradually stopped buying it.

3. Hot spots

In the domestic internet circle, there is a well-known "secret". If a startup wants to succeed, it needs to break with the big names in this industry and make YY its own competitor. /kloc-On the afternoon of May 0/8, Luckin Coffee announced at the press conference that it would sue Starbucks for alleged monopoly.

At the same time, Luckin Coffee issued an open letter, pointing out that Starbucks is suspected of violating the relevant provisions of Articles 14 and 17 of the Anti-Monopoly Law, and intends to file a civil lawsuit with the relevant court. As a new role, Luckin Coffee is ready to directly sue Starbucks, the industry leader; Luckin Coffee's tactics make more people, especially the hardcore fans of Starbucks, look down on them and even think that they are trying their best to sell themselves.

What do you think of Luckin coffee?

1. Two consecutive rounds of financing were put in place, and most of the employers participated in the rounds continuously, with a good background. I believe that even if there is a "prerequisite" for making money, the financial pressure on the company's operation level is not great;

2. Under the current capital market, it can continuously obtain high financing, and it is a well-known institution, indicating that there are some undisclosed data or business models, and the high probability is that the capital is very happy;

3. Cooperate with Tencent for traffic blessing; After all, the most expensive thing in China at present can be said to be the traffic cost;

4. The repurchase rate is 40%, so that everyone can remember this brand as quickly as possible;

Some people compare the data of Starbucks stores that have been open for 18 years. From the number of stores, the mass production of coffee cups in a single store, the cost of a single cup, and even deducting the sales price of a single cup of Luckin Coffee, we can make ends meet. It seems very professional. In fact, taking the overall operation data of Luckin Coffee for 0-9 months, we make a static analysis and inference on the operation indicators, completely ignoring the early process of opening a store, getting customers and climbing the slope, and the conclusion is still biased.

6.Luckin Coffee has opened 2000 stores in 22 big cities including Beijing, Shanghai, Guangzhou and Shenzhen. In the first four months of trial operation, Luckin Coffee sold 5 million cups of coffee with 6.5438+0.3 million users. Seven months later, on August 1 day, the total cup volume of Luckin Coffee was180,000, with 3.5 million users; 1 1 month later, the number of stores 1700, and the total coffee sales have reached 85 million.

The 1200 store behind Luckin Coffee was completed in the last four months, but the investment cost of the previous store was huge, and the sales volume did not run in a short time. It is obviously unreasonable to compare the operating indicators and efficiency of 809 stores in the first nine months with more than 3,000 mature stores in Starbucks. If Ruixing wants to challenge Starbucks' position, upfront investment is necessary. However, judging from the current market share, and comparing the data of 60 square meters fast food restaurant and Starbucks 200 square meters standard store, Luckin Coffee's performance is still remarkable.

7. The new coffee retail model launched by 7.Luckin Coffee has achieved 100% coverage within 500m of the core area of key cities, and users can reach it within 5 minutes' walk. After doing such a big thing, I only lost 857 million. Compared with those light asset models, Internet companies that often lose tens of billions can still see the value of fixed investment.

8. At present, the per capita customer acquisition cost in most Internet fields is 100+ yuan, and Internet finance is higher. According to the total cup quantity, the average customer acquisition cost of Luckin Coffee per user is less than that of 80 yuan. This is related to Luckin Coffee's rich experience in fission marketing.

We have adopted the preferential strategies of "buy two get one free" and "buy five get five free", as well as a series of social fission methods such as red envelope fission, innovation incentive and IP fission. And most of the advertising expenses are used as user subsidies to stimulate old users to share new friends, which greatly reduces user costs and market input costs. This kind of play is completely different from the traditional Starbucks store to welcome guests;

9. Capital is very attractive. If we use capital as leverage and cut out a certain level of consumer groups in Starbucks through the business operation mode of Luckin Coffee, I think it is successful; If the overall sales gross profit level is further improved through SKUs other than coffee, and the loss exposure is reduced on the basis of consolidating market share, then it can be used as a capital story to land in the capital market. This model is completely "no problem"!

What should we think about? Through the case of Luckin Coffee, I will make the following points:

1. For the new economy industry, especially the Internet industry, don't look at the business model of enterprises in this field with the thinking logic of traditional industries; This point, to put it bluntly, is not to make "metaphysical" mistakes.

2. When we look at a new problem, we must see whether its process can bring us new ideas, instead of looking at a thing with colored glasses at the beginning, such as thinking that Luckin Coffee is "dumping".

3. The operation of new economic enterprises is almost always driven by capital. So from the perspective of capital, why do you like it and then want to continue investing? This is a topic that needs empathy, and we need to think from another angle.

No matter the ultimate success or failure of an enterprise, if we learn "nutrition" and can establish the ability to predict other things in the future, then we will gain something.

5. Looking at a problem is like looking at a person. Learn to smile forever and avoid extreme left or right.