This document provides information about the coffee market in China and top coffee brands in the country. It discusses Luckin Coffee and Coffee Box, two major coffee chains in China. Luckin Coffee aims to surpass Starbucks with an ambitious goal and a delivery-focused model. Coffee Box started as a delivery app and now operates small coffee shops for delivery. Both companies use marketing strategies like discounts, celebrity endorsements, and social media platforms to attract customers. However, Luckin Coffee faced a financial scandal and quality issues pose a challenge for Coffee Box's growth. The document also lists some potential improvements for mobile coffee ordering apps in China.

1. The Coffee Co.
Servingyour
favoritecoffee
since2002

2. OVER 2.25 BILLION CUPS OF
COFFEE ARE CONSUMED IN
THE WORLD EVERY DAY.
I N T E R E S T I N G F A C T S A B O U T C O F F E E

3. WHAT WE AIM TO ACHIEVE
to ensure freshness, quality and
consistency in the final cup of
coffee, and excellent after-sales
service.
OUR BUSINESS
GOALS

4. Revenue in the Coffee segment amounts to
US$11,653m in 2020. The market is
expected to grow annually by 11.6% (CAGR
2020-2025).
The market's largest segment is the
segment Roast Coffee with a market
volume of US$7,750m in 2020.
In relation to total population figures, per
person revenues of US$8.05 are generated
in 2020.
The average per capital consumption
stands at 0.06 kg in 2020.
STATISTICS OF
CHINA COFFEE
MARKET
DATA BASED ON IN-DEPTH
ANALYSIS
THECOFFEECO.

5. BY PRODUCT TYPE
Whole-Bean
Ground Coffee
Instant Coffee
Coffee Pods and Capsules
BY DISTRIBUTION
CHANNEL
On-trade
Off- trade
Supermarket/Hypermarket
Convenience Stores
Specialist Retailers
Others
China Coffee Market

6. Top Brands In China
STAR BUCKS
4,507 brick-and-
mortar stores in
China as of Dec.
31, 2019.
40 million unique
customers by the
end of 2019
LUCKIN COFFEE COFFEE BOX PACIFIC COFFEE
4,507 brick-and-
mortar stores in
China as of Dec.
31, 2019.
40 million unique
customers by the
end of 2019
Coffee Box has
over 400 coffee
stations as of
2018.
Average daily sales
of 1,200-1,500 cups
of coffee per store
in peak season
Pacific Coffee
has 500
stores worldwide.
It has
covered more than
15 cities in China
as of the third
quarter of 2019

7. LUCKIN COFFEE COFFEE BOX

8. LUCKIN COFFEE
Founded in 2017, Xiamen-based Luckin Coffee
burst onto the scene with an ambitious goal to
usurp Starbucks’ dominance in China’s coffee
chain market. To quickly gain market share, the
company has been offering generous discounts
to consumers and develops a unique delivery-
focused approach, which requires customers to
use smartphones to place orders and pay for
their coffee, to then pick up their orders in a
brick-and-mortar store, or have them delivered.

9. LUCKIN COFFEE MARKETING
The firm’s app, the main platform for customers to order coffee at Luckin’s stores
(besides its WeChat mini program),
Pre-paid coffee coupons
Luckin offers a lower price point about 20% cheaper, with an Americano at 21 CNY and
24 CNY for a latte.
20%-30% lower than comparable items from Starbucks in China
Ads featuring tier 1 celebrities like Zhang Zhen and Tang Wei posing with a Luckin
coffee.

10. LUCKIN COFFEE DOWNSIDE
LUCKIN COFFEE REVOLVES AROUND THE SMARTPHONE.
Negative Media - Luckin has experienced a crisis of existential proportions when the company announced an internal investigation on April
2 into the conduct of its chief operating officer Liu Jian, who is believed to have inflated revenues by RMB 2.2 billion (USD 310.5 million).

11. COFFEE BOX
Founded in 2014, Coffee Box started out as a
coffee delivery app for foreign brands such as
Starbucks and Costa Coffee. Leveraging insights
using the data it gathered on customer
preferences and demographics, the company
started its own brand, Coffee Box, in 2016.Coffee
Box approaches the market in its own distinctive
way by setting up small coffee shops, or
“stations”, which only have two baristas and
several deliverymen in a single shop, to offer
coffee deliveries to customers.

12. COFFEE BOX MARKETING AND DOWNSIDE
The company boasts guaranteed delivery within 30 minutes and operates an asset-light
business model with main spending on rent, operations, and its specialized supply chain.
It collects most of its orders from already popular social media platforms such as WeChat
or food delivery apps such as Meituan.
Social e-commerce plays a big part in their growth.“pocket cafe” campaign : They push
hard to motivate cafe “owners” to share their shops to friends and on their Moments to do
their sales and promotion work for them, in exchange for free coffees.
Gamified model that lets users “level up” (i.e. unlock and sell special drinks after reaching
certain sales goals) helps create stickiness for this decentralized sales structure.
Regular group-buying deals, catchy names & enticing decoration, gimmicky products -
“bulletproof coffee”.
Biggest drop seems to the quality of Coffee

13. Good image resolution
Search options
Lauguare option
Offer deals - display
Push notifications
User Feedback option
Customization
Map facility
Coffee wallet
Security
Customer Support
M O B I L E A P P C H A N G E S

14. T H E C O F F E E C O
THANK YOU
B Y A Y U S H I T R I P A T H I