Luckin Coffee(US:LKNCY) 21世纪经济报道·2025-05-30 07:23Core Viewpoint - Luckin Coffee has introduced a promotional price of 6.9 yuan for various drinks, which is perceived as a response to competitive pricing from Kud Coffee, despite the company stating it is a promotional offer rather than a price reduction [4][5][6]. Group 1: Pricing Strategy - Luckin Coffee has initiated a promotional campaign offering drinks at 6.9 yuan, a significant drop from the previous minimum price of 9.9 yuan [4][5]. - The company claims this pricing strategy is part of a dual holiday promotion for the Dragon Boat Festival and Children's Day, rather than a permanent price cut [4]. - Kud Coffee has aggressively reduced its prices to 3.9 yuan and 4.9 yuan per cup, intensifying the competitive landscape in the coffee market [5][6]. Group 2: Competitive Landscape - The coffee and tea industry is experiencing a price war, primarily driven by Luckin Coffee, which previously set the trend for lower prices in the market [5][6]. - Kud Coffee's rapid sales growth, achieving a tenfold increase in orders shortly after launching on Taobao, highlights the effectiveness of its low-price strategy [5]. - The competition is not limited to coffee, as new tea brands like Mixue Ice City are also influencing pricing strategies across the beverage sector [6]. Group 3: Management Changes - On April 29, Luckin Coffee announced a change in leadership, with Li Hui taking over as chairman, while Guo Jinyi remains as CEO [7][8]. - Li Hui, the new chairman, has a strong background in finance, having previously worked at Goldman Sachs and Morgan Stanley, and is currently the largest shareholder through Dazhang Capital [8]. Group 4: Financial Performance - In the first quarter of 2025, Luckin Coffee reported total net revenue of 8.865 billion yuan, marking a year-on-year increase of 41.2% [8]. - The company's GMV reached 10.4 billion yuan, with a GAAP operating profit of 737 million yuan and an operating profit margin of 8.3% [8].