Specialist
Former Director of Supply Chain of China at Starbucks Enterprise Management (China) Co Ltd
Agenda
- Potential impact on China’s coffee market from the novel coronavirus outbreak during Chinese Spring Festival, plus outlook for China’s 2020 coffee market size and growth rate
- Changes in the competitive landscape of China’s 2020 coffee market, and operational analysis of Starbucks (NASDAQ: SBUX) and Luckin Coffee (NASDAQ: LK)
- Leading coffee brands’ future development potential and 2020 profit forecast
Questions
1.
Can you give us your outlook on China’s coffee market in 2020? How do you expect the size, growth and competitive landscape of the market to change?
2.
What do you think of the growth prospects of the market? What will be the main growth drivers if it is to grow? For example, will the rise of indie coffee shops drive the overall growth of the market? If you don’t think it will grow, can you tell us why?
3.
The coffee industry can be divided into different segments. In addition to the kind served by coffee shops, there are also instant coffee and canned coffee beverages. Luckin Coffee is testing its self-service coffee machines too. Can you give us a rundown of the main segments of the industry?
4.
As you said, young people from lower-tier cities or towns, business people, the post-95 or post-00 generations have totally different needs for coffee, social life and dining. Then from the perspective of cities, because the coffee market in first-tier cities is basically saturated, how should brands conduct channel penetration? What strategies should they adopt that are different from those of the existing players in firstand second-tier cities?
5.
What do you think Luckin Coffee has done well in supply chain establishment and what needs to be improved?
6.
It is believed that Luckin Coffee already has many outlets and its own outsourced delivery team. In the future, it can increase orders and lift the ARPU by adding more categories, such as milk tea or light food, so as to increase profits. Can you comment on that?
7.
Coffee brands are likely to struggle in Q1 2020 due to the novel coronavirus outbreak. What strategies will Starbucks adopt in China’s market to improve its turnover in H2 2020? In 2019, it launched discount, promotion and buy-one-get-one-free strategy. What different strategies will Starbucks or Luckin Coffee adopt in 2020?
8.
Do you think Luckin Coffee’s loss will increase continuously or decrease gradually in 2020 with so many
new strategies?
9.
Is there anything important you would like to add about China’s coffee market, drinking market, Starbucks and Luckin Coffee?
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