This live loyalty article discusses the devastating financial revelations from Luckin’ Coffee – the high profile Chinese coffee company that was once valued at over a billion dollars, but was in fact defrauding investors. The firm had overstated its revenues to the tune of over £300 million.
Boasting over 4,500 stores and serving over 9 million monthly visitors in China by January 2020, Luckin’ Coffee’s two-year meteoric rise was the result of aggressive marketing tactics. This audio article reviews some of the ideas that earned the firm the title of one of the world’s top 50 most innovative companies before the accounting fraud was uncovered.
We discuss its data-led approach and some concepts that would undoubtedly have continued to delight Chinese consumers and challenge the dominance of Starbucks in its key international market.