Luckin Coffee is a traffic channel!

This article first introduces the joint venture between Luckin Coffee and Moutai, then analyzes why this joint venture became popular, analyzes whether it is short-lived, and finally concludes that Luckin Coffee is a traffic channel. This article is suitable for other brands to watch and learn from, and analyze how to carry out joint activities.

These past two days, the news about the jointly-branded sauce-flavored latte coffee by Luckin Coffee and Moutai has been all over my screen.

Luckin also released a battle report on the second day after the product was launched. The single product sold 5.42 million cups on the first day, and the single product sales exceeded 100 million, breaking Luckin's all-time single product record.

Although there were many negative voices and doubts about whether real Moutai was added during the user's carnival, it did not affect user consumption at all.

1. Why is it so popular?

First, let’s analyze why this co-branded product is so popular.

If it wasn't Moutai, would the same scene happen if it was replaced with other white wine or red wine?

1. Pretend to be the best

I personally put this factor first. Regardless of whether I have ever drunk Moutai or not, I must show off on my circle of friends.

So everyone from individuals to company bosses is making money.

The boss bought it and gave it to his employees to express his concern for their welfare. The boss shared it personally, thinking that he was keeping up with the trend, and received a lot of likes on his social media friends circle.

Of course, if Moutai is replaced with LV, Palace Museum cultural and creative products, etc., there may be a chance.

2. Try it out

We have to admit a reality: among the users who buy this sauce-flavored latte, there are probably very few who have actually tasted Moutai.

After all, a bottle of wine costs two or three thousand yuan, which is not something ordinary people are willing to consume frequently.

However, a bottle of Moutai coffee at 19 yuan has greatly lowered the consumption threshold, which is more appealing than buying Moutai ice cream.

3. Combination of national trends

As the representative of domestic liquor, Moutai represents high-end, taste, inheritance and face.

As a rising star in the domestic coffee industry, Luckin Coffee has experienced many ups and downs throughout its entrepreneurial journey and has achieved a reversal in reputation, representing domestic products, hard work, and substance.

So when these two are combined, it immediately becomes the social currency in the circle of friends.

And the theme this time is very good, fine wine and coffee, (let’s have a drink).

If the Mid-Autumn Festival comes earlier this year, with the introduction of this product, perhaps sales will be even higher.

2. So what if it’s just a flash in the pan

Some people would think that this joint activity is a failure because it is unsustainable.

Users just want to try out new products and show off on their social networks, and there won’t be many repurchases.

Although this is true, the popularity of the circle of friends immediately dropped the next day, and only a few sporadic photos could be seen.

But it doesn't matter anymore.

A single product made 100 million yuan in sales in one day. On average, stores across the country added nearly 400 orders a day, not including the traffic in the following week or half a month. This is very helpful for store traffic and transaction.

After the launch of the Maotai-flavored Latte coffee, both Luckin Coffee and Moutai saw significant increases in their stock prices on the same day.

Many people are worried that Moutai has lost money and that the price of Moutai has dropped, etc., but this will not affect the sales of Moutai at all because it is hard currency.

Those who say the price has dropped, if you really sell them a Moutai priced at 1499 or 1999, they will still fight to grab it.

Many people think that repeat purchases are necessary, but in fact, there is no need to do so.

Because this kind of product is not destined to be purchased again. On the one hand, it involves drunk driving, and on the other hand, it is not a must-have product in the workplace or daily life.

However, the marketing volume, new customer acquisition value, and store exposure value it brought may have helped Luckin save millions in advertising fees.

Before, people rushed to buy Luckin Coffee’s 4.9 and 9.9 prices with the mentality of taking advantage of the situation, but now they rush to buy the sauce-flavored latte with the mentality of showing off.

3. Luckin is a traffic channel

After this joint event went online, I saw a very interesting comment: I don’t know whether Luckin’s sauce-flavored latte tastes good, but in the future, employees who come out of Luckin’s marketing department will definitely be the best at marketing.

If you look at the launch event of Luckin Coffee’s Sauce Flavor Latte and just think of it as a single product, you will soon forget about it.

But if you change your perspective and regard this joint event as an important demonstration of Luckin's market channel capabilities, then you can foresee what will happen next.

It is certain that Luckin will have more co-branded products in the future. Maybe the next co-branded product will be with clothing, e-commerce platforms, basketball events, sports events, or even a city’s co-branded event.

If an enterprise has money, such a joint venture would be worth giving three to five million, no matter if it is planning to raise funds or has already gone public.

We should treat Luckin Coffee as a traffic entrance and a sales channel.

Luckin Coffee currently has more than 10,000 stores across the country, with tens of millions of private users, and sells millions of cups every day.

Moreover, it is open from morning to night, covering various business formats such as residential areas, schools, office buildings, shopping malls, and parks.

So in the future, maybe you can see Luckin Coffee collaborating with a movie. Just imagine that Luckin Coffee can bring in more than 400 to 500 million yuan in box office revenue in one day through a single channel. Do you think the producers and distributors would not be interested?

Of course, this kind of gameplay is only suitable for large companies to work together to form a strong alliance.

As for individuals, they should seize this opportunity to intercept traffic and do group buying distribution in the same city, and they can also make some money.

Author: Village Chief, Source WeChat Official Account: Shili Village