Luckin Coffee's Successful US IPO: Can We Now Afford and Access Good Coffee?

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At 21:30 Beijing time on the evening of the 17th, Luckin Coffee officially rang the listing bell on the Nasdaq Stock Exchange. At this point, the long-standing rumors surrounding Luckin's IPO finally came to an end.

A Company with the World's Fastest IPO Record

At this moment, how many people still view "Luckin Coffee" as an ordinary coffee shop?

It must be said that Luckin, which has been in business for less than two years, is increasingly departing from the general perception of a traditional coffee shop—although most of our understanding of "traditional coffee shops" comes from Starbucks, and Luckin aims to break Starbucks' "dominance" in the domestic market—launching online and delivery services that go beyond the "third space," rapidly expanding with numerous branch openings, and continuously issuing coupons to bring affordable prices. These measures have undoubtedly stirred up a storm in the domestic coffee market and in the hearts of the Chinese people (whether you drink coffee or not).

Now, Luckin has once again captured the spotlight on coffee-related matters both domestically and globally, not because its coffee is particularly stunning, but because of its capital operations and its successful IPO.

"Speed" is Luckin's most distinctive feature.

Before Luckin, Pinduoduo and Qutoutiao demonstrated the remarkable speed of Chinese companies going public in the United States, with 3 years and 2 years respectively from founding to listing. However, these are far from matching Luckin's 17 months, which is no less impressive than its store expansion speed. Luckin has become the company with the fastest IPO globally.

Furthermore, Luckin is also the largest Asian company in terms of IPO financing scale on Nasdaq this year. Kathleen Smith, head of Renaissance Capital, stated, "Since the 1999-2000 internet bubble, no company has achieved a $3 billion public valuation within less than two years of its establishment."

Regardless of how Luckin is perceived in the public eye, at least in the eyes of capital, it is a cup of coffee worth savoring.

Luckin's Coffee, China's Coffee?

The reason Luckin is favored by capital is inseparable from the booming domestic coffee market. Domestic coffee is not just about Starbucks and Luckin. From foreign coffee chain stores that entered the Chinese market long ago, to beverage brands that have joined the competition by developing new coffee products, to numerous independent specialty coffee shops... At first glance, it seems Chinese people have quite many options when wanting to drink a cup of coffee.

At the same time, China's coffee culture is far from mature. For "coffee," this imported product, Chinese people have a relatively vague understanding of its place in their own lives. In our subconscious, we always distinguish coffee from beverages like a glass of water, a pot of tea, or a bottle of cola, and then assign it numerous additional meanings and values—coffee in China is, surprisingly, so distinctive.

Some people say that Luckin is not a "legitimate" coffee shop. In their eyes, Luckin is just using "coffee" as a product to play a capital game that ultimately ends in chaos. However, at the IPO bell-ringing ceremony, Luckin Coffee's founder and CEO, Qian Zhiya, used a "Luckin Coffee Manifesto" to announce the company's ambition: to provide Chinese people with affordable and delicious coffee.

In response to media questions, CEO Qian Zhiya reiterated that losses are in line with Luckin's expectations, "We currently do not consider profitability." The rapid expansion that won't stop, the continued acquisition of users through subsidies, and the commitment to maintaining excellence in the face of rising new competitors—Luckin Coffee, after its successful IPO, has shown everyone a positive image of striving to cultivate the domestic coffee market and consumers.

Can We Really Drink a Cup of Coffee That Is Both Affordable and Delicious?

The bell-ringing ceremony for Luckin's listing was conducted by three well-known coffee champions, serving as a demonstration of Luckin's emphasis on coffee quality. Prior to this, these three masters brought Luckin coffee beans that won the ICT Gold Award, and this formula has been upgraded by Luckin to all its stores nationwide.

However, this cannot avoid doubts about the quality of Luckin Coffee. Some media have pointed out that the staff at Luckin stores are far from reaching the level that can be called "baristas." Brief on-the-job training and rapid assembly-line operations result in coffee quality that only stays at the level of chain stores.

As consumers, should we demand more from Luckin? Do we need to have expectations for Luckin's "Master Coffee"?

Luckin has successfully gone public in the United States and has also issued a manifesto at the IPO ceremony, committing to continue providing us with "affordable and accessible" good coffee. In Luckin's eyes, the taste preferences of the Chinese coffee market still need time to cultivate. And as we, who are being cultivated, will there one day come when we abandon chain store coffee?

Luckin says: What's the difference between Chinese coffee and American coffee? Confidence. For those who love and want to drink coffee, do you need a cup of Luckin Coffee filled with confidence?

Image source: Internet

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