DIARY OF A BRAND: LUCKIN COFFEE

Summary from the TLDR Marketing newsletter

Luckin Coffee collapsed in 2020 after admitting to fabricating revenue, but it has since staged a major turnaround. It is now the largest coffee chain in China with over 26,000 stores, more than 10 billion drinks sold, and projected 2025 revenue of $5.7B, nearly five times higher than during its bankruptcy. The company shifted from a discount-driven model to a premium strategy, creating hit drinks like the Coconut Latte and Moutai Latte that cater to Chinese tastes, and pairing them with high-profile collaborations and cultural tie-ins. Its data-driven approach to store placement increased new store survival from 63% in 2019 to 93% in 2021, while continuous product testing allowed it to launch 100+ new drinks in 2023. With its first two US stores open in 2025, Luckin now aims to challenge Starbucks and other chains in a highly competitive American market.