3 lessons I acquired from #luckin

Coffee for me and my kids are an art. It is one of the many things we enjoy together.

I am really addicted to coffee, I have tried to reduce my consumption few years ago, but I have failed with first few months, this was around 2010; then, I have decided to quit it at all. And, I did it, do you believe that ?

From 2011 to 2013, for more than two years, I have stopped drinking coffee, however, due to some circumstances later on; I started drinking it again. This time, not only the Arabic coffee , I have started drinking the big brand western coffee ; like Starbucks and Costa coffee.

I am amazed with Starbucks and their layouts. And, since I love to travel, and at the same time, back to coffee addiction, I never traveled to a country where I don’t see a Starbucks. And, not only that, the best tourist attractions spot in all of those countries, you find a Starbucks’s shop. And, not even that, best corner with best atmosphere and most trained staff, you find a Starbucks.

Budapest 2017

For example, Last August, I was in China, I was surprised how much Starbucks shops are there and how Chinese people are waiting in ques for a coffee from Starbucks. I realized how big, strong, and successful Starbucks is; around the world, even in china.

However, and now days with #corona and the fact there is more time to read, I was shocked yesterday by reading an article about stock market and how #luckin’s stock fall. I came to know about this Chinese coffee company. Indeed, luckin has a very successful start, regardless, of how its’ current financial situation,now.

I have learned many lessons from reading articles and watching videos about #luckin :

Nothing is too scary: those two entrepreneurs who decided to create #luckin were brave enough to challenge #Starbucks. Yes, Starbucks is huge, they are the best coffee firm in the whole world. But, nothing is too big. Luckin started with a bold strategy to not just to make a profit and to have a good share in the Chinese’s market, they aimed to overcome Starbucks in china.

• Lesson Learned : Sky is no more the limit.

Cost Effective Approach: with further reading and analysis, I realized that luckin entered the market with minimum cost. Reducing the cost of shop building is a key factor in their cost reduction approach. They saw how Starbucks is hugely spending in their state of art shops and #luckin just simply done the opposite.

•  Lesson Learned : luxury is not subject for success.

 #Technology : luckin is it really almost a tech company. They use the internet to penetrate the market, the company created a very friendly mobile apps to book a buy a coffee within few second. In addition, luckin uses social media for their marketing; they are up to the date with trend and they utilize the social media influencer’s concept very effectively. Furthermore, luckin use even artificial intelligence in its operation to gain more stratified customers.

•  Lesson Learned: use technology and #innovation, or just wait to die.

With #coronavirus and expectation that there will be a very deep recession, the competition to survive will be very much on raise, therefore, I recommend you , before me, to take note of those three lessons if you have business to take care of.

Of course, I meant only three learned lessons written here, and personal, no comments of fast growing stores and the risk associated with that; plus, the recent news about their financial reporting of luckin.

Please watch my Arabic side of the same story in the below video :

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