Recruitment in Guo Chao

How did Luckin coffee become the "light of domestic products"? In a word, spend money+build a business model+use Internet traffic. And "success is Xiao He, failure is me", and Rui Xing is also defeated here.

where is the money to come from?

Here we should mention its founder Qian and the Shenzhou team behind him, especially Lu, the chairman of Shenzhou Group. ? These social resources have attracted the attention of many investment institutions in Luckin Coffee. These institutions jointly participated in the angel round financing of Luckin Coffee, with an investment scale of about 654.38 billion yuan. This money did give Luckin Coffee a huge innate advantage, but it also eventually laid some roots for the rapid development of Luckin Coffee.

Why is the money gone? The burning water has disappeared.

In the price war, new users are free, buy two get one free, buy five get five free. Luckin Coffee made full use of social fission to open the market, but it also consumed the upfront funds. It can be said that their costs can't be earned back. However, there are also successful cases in this way, such as the marketing method of WeChat grabbing red envelopes.

The rapid expansion of the business sector

This is manifested in the beginning, their family was too ambitious, and they directly bid for Starbucks as soon as they started. In fact, this is not particularly accurate, because it is also a marketing tool, and it has indeed achieved the goal of quickly establishing its own brand image. Or, Luckin Coffee came into public view when it sued Starbucks (China) for monopolizing the domestic coffee market.

However, it really shouldn't compete with Starbucks for market share. It took Starbucks 1999 1 1 to enter the China market, and it took Starbucks 17 years to expand the number of stores to 2,000. Luckin Coffee, which just started its business for one year, successfully surpassed Starbucks at the end of 20 19. It's scary to think about it.

Successful "quick" listing

On May 17 of the same year, Luckin Coffee landed on NASDAQ, becoming the largest Asian company with a market value of $4.2 billion in Nasdaq IPO financing in 20 19. Soon, Luckin Coffee's business model became a successful business template that everyone wanted to copy. At that time, the limelight was the same.

It came a little fast.

But later, it was not so pleasant.

On February 1 day, 2020, Muddy Water released a short report, pointing out that Ruixing exaggerated the sales volume of goods in stores, and exaggerated the daily sales volume of goods in stores in the third and fourth quarters of 20 19 by at least 69% and 88%.

In other words, Ruixing didn't make that much money, and the accounts were all false. But in this regard, Rui Xing strongly denied that I didn't jump the order, and there is something wrong with your statement. You haven't found any evidence yet.

Subsequently, on April 2, Luckin Coffee voluntarily confessed the false transaction. In the next few weeks, the following news will automatically pop up on my mobile phone. Ruixing's share price exploded, exploded and exploded. Yes, after five fuses, its share price has shrunk by 80%. Kind of like buying a big steamed bun in the morning and eating it at night, huh? Why pancakes?

Luck component

In fact, Luckin Coffee should be able to make a normal profit after fighting for a while. After all, burning money for customers has been done by Meituan and Didi, and both have succeeded. But something unexpected happens in the sky ~

abstract

Actually, Luckin Coffee is not easy. How to turn losses into profits as soon as possible without expanding the market? However, its heart is a little too anxious and its pace is a little too big. In other words, the market is not ready to accept the user-led Internet coffee business model.