Unlike Pinduoduo, Ruixing effectively reduces costs through grouping, making cheap discounts a long-term effective strategy, so subsidies can only be short-term market behavior. Therefore, the so-called MVP of Ruixing's so-called first store may only be successful in the process, or it may only be successful in a specific coffee preference group, and the commercial feasibility of the national level that Ruixing wants to do has not been fully obtained. verify. What's more embarrassing is that even if it is the real target group of the original coffee, Ruixing may not keep it. They are the target group of Starbucks and costa. To keep them, they first need to be polished at the coffee level. Ruixing did not keep them because Ruixing's current goal is particularly clear and simple, that is, scale.
Provide a product that is [available], staking the field, and then slowly improve the product after occupying the market to become [easy to use], so Luckin’s money is spent more on how to acquire users and expand the market, rather than down The effort is in the coffee itself, so even many coffee lovers haven't really been able to keep it. Look at the members of the Starbucks APP, the repurchase rate is 300% Therefore, the first fatal point of Ruixing is that the MVP did not really run through, the blitz expansion is only based on the imagination of the future market, and the Phone Number List universal coffee demand has not been verified. In order to verify the universality of the coffee market, you may really need to open it before you know it, which also means that you really need to open it one by one.
So there’s nothing wrong with opening a store. What’s wrong is that in the coffee industry, the most radical blitzscaling approach was initiated when the demand has not been verified. This is the second fatal point. 05 Luckin can open stores faster than traditional coffee companies because it has the reachability of Internet companies, but this [fast] has a limit. Traditional coffee companies cannot solve the two pain points of [too expensive and convenient] so quickly, because of the constraints of the business model, one is the ability to reach, and the other is cost considerations.