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Business· Accommodation & Catering

Luckin Coffee started selling tea in China’s second-tier cities

CKN
minutes 2019/10/15 04:13:31
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Luckin Tea, tea house chain operator, China’s second-tier cities

Oct 15, 2019 (China Knowledge) - As of 13 Oct, Luckin Tea, the standalone company of Luckin Coffee, has set up outlets nationwide, covering 20 cities including Yangzhou, Ningbo, Dalian, Chengdu, Haikou, Beijing, Nanjing, Chongqing, Jinan, Zhenjiang, Wuxi, Guiyang, Shenzhen, Quanzhou, Changzhou, Tianjin, Fuzhou, Zhengzhou, Changsha and Shenyang.

On 3 Sep, Luckin Coffee announced that its Luckin Tea brand will operate independently, less than two months before the official launch of Luckin Tea. According to the plan, Luckin Tea will set up independent stores and carry out a brand-new design on the appearance and logo of its stores.

Luckin Coffee’s Q2 report shows that by the end of June, it had set up 2,963 stores, with more than 200 stores in Jiangsu, Zhejiang, Guangdong, and Beijing, and 100-200 stores in Tianjin, Chongqing, and Sichuan.

Luckin Tea also faces fierce competition as the market is highly fragmented and there are many strong competitors like Heytea and Naixuecha. It is learned that by the third quarter of 2018, the total number of new tea shops nationwide had reached 410,000, up 74% YoY.

It is worth mentioning that Shanghai and Guangzhou have not seen a Luckin Tea outlet launched yet.

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