Luckin Coffee, which is embroiled in the financial fraud controversy, announced on Weibo on August 24 that it has opened a flagship store on China's emerging e-commerce platform Pinduoduo to sell coffee, coffee cups and other products.
Luckin Coffee's latest LINE FRIENDS mugs are priced as low as 9.9 RMB. To date, the store has sold 19,000 items and has 12,000 followers.
This flagship store targets consumers in Tier 3 and Tier 4 cities, which is very different from those in Tier 2 and Tier 3 cities in offline stores, and will likely help Luckin Coffee expand its user base.
It is worth mentioning that Luckin Coffee's single store cash flow has now turned positive, with over 4,000 stores returning to normal operations.
"So far, it seems that Luckin Coffee stores are operating normally and are still launching new products. They have also recently launched the Haagen-Dazs range and judging from the market response, consumers have responded well," the Securities Daily said last week, citing sources close to the company.
Luckin Coffee stopped its strategy of rapid expansion to capture the market over the past 2 years and shifted to creating profitability through fine-tuned operations. Luckin Coffee also achieved 99.89% customer satisfaction in the first half of the year, according to earlier reports.
For the second half of the year, Luckin Coffee's main management objective is to maintain operational stability and continue to provide high-quality products and services to its customers.
