Luckin Coffee Launches Online Discount Store to Sell Electronics and More
Chinese coffee delivery company Luckin Coffee opened an online store on its app and WeChat mini program, selling a wide range of products at discounted prices.
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Besides coffee related products such as coffee mugs and Luckin gift cards, the online shop also offers electronic accessories including AirPods, mechanical keyboards, and electric toothbrushes, as well as snacks and nuts, sanitizing products, and canvas bags.
Labelled as a discount store, Luckin shop attracts customers with competitive pricing. For instance, one of its feature products, the AirPods2, sells for 799 yuan after a bunch of subsidies and discounts are applied. To put that into perspective, AirPods2 is originally set at 1,246 yuan, and the lowest prices on e-commerce platforms JD.com and Pinduoduo are 999 yuan and 859 yuan. Limited to 300 sets and 100 sets per day, the AirPods2 and AirPods Pro quickly sold out within seconds everyday.
The coffee company launched “sakura shopping festival – digital week” on March 23 and offers a “super subsidy” that takes 100 yuan off of a 999 yuan purchase.
An industry insider revealed that the online store orders are directly delivered from warehouses, which is a different model from Luckin coffee delivery. The online store section and coffee ordering section are also two separated sections on the app and WeChat mini program.
Some believe that the move to enter e-commerce is to monetize the huge user base Luckin has built with aggressive marketing and subsidies. Others think it’s another move to just increase its gross merchandise volume.