Luckin Coffee to launch tea brand Xiaolu
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Luckin Coffee, the Chinese cafe startup that has directly taken on Starbucks in the territory, is moving into the takeaway tea market with its new Xiaolu brand.
“Coffee and tea are the two most popular drinks in the office,” said Luckin VP Jinyi Guo. “However, there are currently few renowned brands of milk tea in China, the quality of franchise stores is inferior, and supply chain management is deficient.”
The new brand, launched this week, is targeting young Chinese white-collar workers and offers cheese foam tea, fresh tea and milk tea, among others.
“We want to transform the tea series from traditional tea drinks into creative ones and we hope people drink it in the offices instead of streets,” said the brand’s chief marketing officer Fei Yang.
Luckin completed its New York IPO this May, raising US$561 million.
Questions & Answers
Q.What market segment is Luckin Coffee targeting with its new tea brand, Xiaolu?
What market segment is Luckin Coffee targeting with its new tea brand, Xiaolu?
The new Xiaolu tea brand is aimed at young Chinese white-collar workers. Luckin hopes to encourage these individuals to consume their creative tea series in offices rather than on the streets.
Q.What issues does Luckin Coffee identify in the current Chinese milk tea market?
What issues does Luckin Coffee identify in the current Chinese milk tea market?
Luckin's VP Jinyi Guo noted a lack of renowned milk tea brands in China. She also highlighted concerns about the inferior quality of franchise stores and deficiencies in supply chain management.
Q.What types of tea products will the new Xiaolu brand offer?
What types of tea products will the new Xiaolu brand offer?
Xiaolu will offer a variety of tea products, including cheese foam tea, fresh tea, and milk tea. The brand aims to transform traditional tea drinks into more creative options for its customers.
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