Reported 11 months ago
China's economic downturn leads to a focus on low-cost strategies and price wars, with Luckin Coffee, a rising low-cost brand, pushing prices for summer beverages below 10 RMB, around 40 TWD, causing competitors like Starbucks and Luckin Coffee in China to suffer declines in store revenue in the first quarter of this year. Luckin Coffee, known for its low prices, enlisted celebrity Wang Yibo to endorse their summer products and continues to engage in price wars, offering any drink for less than 10 RMB, about 44 TWD, attracting budget-conscious consumers. Starbucks in China, on the other hand, sees its store sales drop by 11% compared to the same period last year for the first time in 12 quarters, causing Starbucks CEO to express disappointment.
Source: YAHOO