A Comparative Study of Starbucks and Luckin Coffee’s Market in China

Abstract

Due to the rising popularity of coffee drinks in China’s market, the two brands, Starbucks and Luckin Coffee, gradually appear in people’s daily life. Both brands have provided similar products but different services and targeted customer groups, thereby differentiating their positions in the market. Since coffee is becoming one of the most popular drinks nowadays, many people are concerned about the competitiveness of these two brands and their further development in China’s market. This research focuses on different strategies the two brands used to enlarge their customer groups and differentiate themselves from other brands, as well as the customer feedback on their services. The research suggests that, in China’s market, Starbucks has more competitiveness in the recognition of the brand compared to Luckin Coffee, but both brands have succeeded in offering good-taste products. According to the survey, Starbucks received negative feedback on its price and taste of new products, while Luckin Coffee received negative feedback on its environment.