Local Cafes Counter Chinese Coffee Giant Luckin's Aggressive Entry in Singapore
According to the South China Morning Post, while Luckin utilized aggressive pricing and speed to expand, local cafe owners suggest that personal connection and neighborhood familiarity are key differentiators against the Chinese coffee giant.
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Luckin entered the market with a highly aggressive promotional strategy, offering cups for S$1 (78 US cents) and serving them in just two minutes. Cheap drinks and app ordering helped Luckin expand fast, according to the South China Morning Post. Following Luckin's debut, Chew saw sales at his independent cafe drop by 15 per cent in the first few months following its arrival. However, Chew noted that after the initial buzz subsided and the promotions concluded, his coffee sales recovered as regular customers returned. Once the initial hype had died down and the promotions ended, Chew said regular patrons returned and coffee sales bounced back. He added that a certain level of interaction and familiarity becomes integrated into a customer's routine, which extends beyond the product itself.
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