Luckin Coffee’s Digital Transformation: Case Study on the Impact of Digitization in the Coffee Industry

Research Article
Open access

Luckin Coffee’s Digital Transformation: Case Study on the Impact of Digitization in the Coffee Industry

Yuanfang Han 1 , Jingyuan Liao 2* , Wuman Song 3
  • 1 South China University of Technology    
  • 2 Shanghai Maritime University    
  • 3 Longpanhu International School    
  • *corresponding author 202010710183@stu.shmtu.edu.cn
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/33/20231650
AEMPS Vol.33
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-087-5
ISBN (Online): 978-1-83558-088-2

Abstract

This paper examines the impact of digitalization on corporate competitiveness and analyses the digital transformation strategy and implications of the Chinese coffee chain Luckin Coffee as an example. The business model of Luckin Coffee is a new retail model based on new technology. Services are delivered through a mobile app and a network of shops, and goods are sold through third-party digital payment platforms or coupons purchased within the Luckin app, for example. Luckin Coffee's mobile app provides end-to-end customer service, including marketing, customer acquisition, customer management, and billing processes. The research in this paper finds that Luckin Coffee has successfully rebuilt its brand reputation through digital transformation, which has implications for the digital transformation of companies, and that other companies can learn from Luckin Coffee's marketing model and create their own unique and efficient operational models. However, there are some limitations to this paper's research. Companies should improve their digital transformation strategies according to their circumstances and pay more attention to the importance of digital transformation for competitiveness.

Keywords:

Luckin Coffee, digital transformation, coffee industry

Han,Y.;Liao,J.;Song,W. (2023). Luckin Coffee’s Digital Transformation: Case Study on the Impact of Digitization in the Coffee Industry. Advances in Economics, Management and Political Sciences,33,146-152.
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References

[1]. Udovita, P. V. M. V. D.: Conceptual review on dimensions of digital transformation in the modern era. International Journal of Scientific and Research Publications 10(2), 520-529 (2020).

[2]. Wirtz, B. W., Weyerer, J. C., Heckeroth, J. K.: Digital Disruption And Digital Transformation: A Strategic Integrative Framework. International Journal of Innovation Management 26(03), 2240008 (2022).

[3]. Yang, M., Lv, Y. Y.: The strategy and financial analysis of Luckin Coffee. Economics and Management Science 1(1), 7-11 (2019).

[4]. Zippia Homepage, https://www.zippia.com/advice/digital-transformation-statistics/, last accessed 2022/11/14.

[5]. Liu, Y.: Research on the Business Model of Luckin Coffee Under the Background of New Retail. Journal of World Economy 1(2), 46-57 (2022).

[6]. Hui, Z.: In the background of the Mobile Internet, Innovation of audit mode in retail enterprises-with Luckin Coffee as an example. Proceedings of Business and Economic Studies 3(5), (2020).

[7]. Peng, Z., Yang, Y., Wu, R.: The Luckin Coffee scandal and short selling attacks—Journal of Behavioral and Experimental Finance 34, 100629 (2022).

[8]. Chen, Y., Luo, E., Xiao, X., Wu, X., Li, J.: Analysis of Coffee Supply Chain Crisis in China and Recommendations for Large Domestic Coffee Companies. In 2022 2nd International Conference on Economic Development and Business Culture, pp. 172-180). Atlantis Press, (2022).

[9]. Zhao, M., Bao, Y., Bian, H.: Research on AR Technology Packaging Design for Coffee Brands in New Retail Model-Take Luckin Coffee as an Example. In 2022 2nd International Conference on Computer Technology and Media Convergence Design, pp. 528-536. Atlantis Press (2022).

[10]. Gu, Z., Qi, B., Zhao, Y.: Why Luckin Coffee Survived After Its Scandal?. In 2021 3rd International Conference on Economic Management and Cultural Industry, pp. 2521-2528. Atlantis Press (2021).

[11]. Wei, S.: Analysis of marketing innovation under the new retail mode taking “Luckin coffee” as an example. In E3S Web of Conferences, Vol. 235, pp. 01074, EDP Sciences (2021).

Cite this article

Han,Y.;Liao,J.;Song,W. (2023). Luckin Coffee’s Digital Transformation: Case Study on the Impact of Digitization in the Coffee Industry. Advances in Economics, Management and Political Sciences,33,146-152.

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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

ISBN：978-1-83558-087-5(Print) / 978-1-83558-088-2(Online)
Editor：Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.33
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Udovita, P. V. M. V. D.: Conceptual review on dimensions of digital transformation in the modern era. International Journal of Scientific and Research Publications 10(2), 520-529 (2020).

[2]. Wirtz, B. W., Weyerer, J. C., Heckeroth, J. K.: Digital Disruption And Digital Transformation: A Strategic Integrative Framework. International Journal of Innovation Management 26(03), 2240008 (2022).

[3]. Yang, M., Lv, Y. Y.: The strategy and financial analysis of Luckin Coffee. Economics and Management Science 1(1), 7-11 (2019).

[4]. Zippia Homepage, https://www.zippia.com/advice/digital-transformation-statistics/, last accessed 2022/11/14.

[5]. Liu, Y.: Research on the Business Model of Luckin Coffee Under the Background of New Retail. Journal of World Economy 1(2), 46-57 (2022).

[6]. Hui, Z.: In the background of the Mobile Internet, Innovation of audit mode in retail enterprises-with Luckin Coffee as an example. Proceedings of Business and Economic Studies 3(5), (2020).

[7]. Peng, Z., Yang, Y., Wu, R.: The Luckin Coffee scandal and short selling attacks—Journal of Behavioral and Experimental Finance 34, 100629 (2022).

[8]. Chen, Y., Luo, E., Xiao, X., Wu, X., Li, J.: Analysis of Coffee Supply Chain Crisis in China and Recommendations for Large Domestic Coffee Companies. In 2022 2nd International Conference on Economic Development and Business Culture, pp. 172-180). Atlantis Press, (2022).

[9]. Zhao, M., Bao, Y., Bian, H.: Research on AR Technology Packaging Design for Coffee Brands in New Retail Model-Take Luckin Coffee as an Example. In 2022 2nd International Conference on Computer Technology and Media Convergence Design, pp. 528-536. Atlantis Press (2022).

[10]. Gu, Z., Qi, B., Zhao, Y.: Why Luckin Coffee Survived After Its Scandal?. In 2021 3rd International Conference on Economic Management and Cultural Industry, pp. 2521-2528. Atlantis Press (2021).

[11]. Wei, S.: Analysis of marketing innovation under the new retail mode taking “Luckin coffee” as an example. In E3S Web of Conferences, Vol. 235, pp. 01074, EDP Sciences (2021).

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