Luckin Coffee in China: An Innovative Coffee Brand Dominating the Chinese Market amid the Covid-19 Pandemic

Abstract

Although China is historically known as a tea-consuming country, coffee consumption in China has been increasing at double-digit rates in recent years. Based on the Diffusion of Innovation Theory, we explored Luckin Coffee’s innovative business concepts, including operational efficiency and marketing strategies such as price advantage, technical-support system, omnichannel sales, and social media promotion to expand market share. In addition, Luckin Coffee’s advanced technology and digital customer engagement have given the company an unexpected boost, as the importance of social distancing and minimizing physical contact became the new norm and standard practice during the COVID-19 pandemic era. This study provides practical insights into the impact of technology and process innovation on enhancing brand value and attracting new customers within the coffee shop and hospitality industries.