Categories: News

After closing some stores in China, COSTA began to imitate Luckin’s strategy.

Some time ago, Chinese media reported that the famous coffee chain COSTA had closed a large number of stores in China, and the number of closures accounted for 10% of the brand’s total stores in China.

Last week, COSTA China confirmed to media that it had closed some of the stores affected by the epidemic, but did not disclose the number of stores closed.

At the same time, the company told the media that it would try a completely different marketing strategy in China: omnichannel sales.

To put it simply, COSTA (China) there will be not only self-owned stores but also franchise stores in the future.

In addition, they will also set up self-service coffee machines in some areas of the city (transportation hubs, hospitals, etc.). At the same time, after being acquired by Coca-Cola, they also tried to sell ready-to-drink coffee in cooperation with shopping malls and convenience stores. As of June this year, COSTA’s ready-to-drink coffee had entered 100000 stores in China.

In June this year, they also launched a capsule coffee machine with JoYoung, a well-known soy milk maker in China, to extend COSTA’s business into consumers’ homes.

This omnichannel sales strategy was first used by Luckin, a Chinese coffee chain, through financing to sell cheap coffee in all channels. Under this fierce attack, Starbucks had to change its strategy in China and began to experiment with e-commerce sales and coffee delivery.

Jeffrey.W

Former researcher, living and working in Beijing, storyteller. If you want to provide reporting clues or any suggestions, contact me with e-mail : Jeffrey@PandaYoo.com

Published by
Jeffrey.W
Tags: CoffeLuckin

Recent Posts

The Biem.L.Fdlkk Story: Building a Chinese Luxury Powerhouse from Scratch

Go inside the entrepreneurial epic of Biem.L.Fdlkk. Learn how founder Xie Bingzheng transformed an acquired…

1 week ago

JNBY: The Untold Story of China’s Enigmatic Fashion Empire and Its Visionary Founder

Go deep into the story of JNBY, the Chinese fashion label that captured a generation.…

2 weeks ago

How “Squishy Toy”(捏捏乐) Became a Multi-Billion RMB Business in China

The Chinese consumer landscape has recently been captivated by a seemingly simple product: "捏捏乐" (Niē…

2 weeks ago

From Farm to Flashpoint: Unpacking China’s Dominance in the U.S. Chicken Feet Trade Dispute

Uncover the intricate details of the U.S.-China trade dispute over chicken feet. This article analyzes…

2 weeks ago

Xiaomi at 15: Strategic Leap with YU7 EV, In-House Xuanjie O1 SoC, and AI-Powered Ecosystem

Xiaomi celebrates 15 years with major strategic reveals: the YU7 electric SUV, the self-developed Xuanjie…

2 weeks ago

Beyond Strings: How LiberLive C1 & Unknown Planet Redefined the Guitar from China

Explore the rise of the LiberLive C1, a groundbreaking stringless guitar by Unknown Planet. This…

2 weeks ago