Core Viewpoint - Luckin Coffee has established a systematic capability for generating hit products, achieving over 50% year-on-year revenue growth and a monthly active user base exceeding 110 million, with nearly 30,000 stores [5][6][12]. Product Structure - In 2023, Luckin Coffee launched 102 new products, with 8 of them achieving sales exceeding 100 million cups. The company plans to introduce 114 new products in 2024 and 119-140 in 2025, indicating a consistent high frequency of new product launches [6][12]. - The product development process is based on a modular system, allowing for efficient combination and testing of various components, which increases the likelihood of creating successful products [11][17]. Supply Chain - Luckin's supply chain is highly standardized, allowing for low-cost experimentation with new products. This structure enables the company to absorb failures without significant financial impact, contrasting with traditional brands that face high costs for product failures [15][18]. - The centralized production of key flavors and liquid structures reduces the complexity at the store level, streamlining the product launch process [15][18]. Organizational Structure - The organizational structure of Luckin Coffee is flat and project-based, facilitating parallel collaboration across departments. This contrasts with traditional beverage brands that have hierarchical structures, which slow down the product development process [12][13]. - Decision-making is driven by data rather than individual judgment, allowing for rapid adjustments based on real-time sales feedback [13][21]. Data System - Luckin Coffee employs a data-driven approach to identify consumer preferences and trends, using metrics such as repurchase rates and customer feedback to guide product development [10][21]. - The company views new products as experiments rather than expressions of brand identity, focusing on market validation rather than brand storytelling [19][22]. Trend Identification - Trends are defined by quantifiable variables that can be monitored in real-time, allowing Luckin to adapt quickly to changing consumer preferences [21][22]. - The company’s approach to product development is iterative, relying on continuous testing and feedback to refine offerings and align with consumer demand [22][24].
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