Contrastive Study On The Business Models Of Luckin Coffee And Starbucks Coffee

China is in a new business era driven by technology and capital.In terms of technology,the establishment of mobile Internet infrastructure enables the full connection of information flow,capital flow and logistics,which can effectively reduce the comprehensive cost.In terms of capital,the huge amount of hot money increases the barriers to entry of the beverage industry.The acceptance and penetration of coffee culture in China are gradually improved,and the diversification of consumption scenes and the increase of consumption frequency promote the expansion of the whole coffee market.Luckin's new retail brand,though just over two years old,will have 4,507 stores by the end of 2019,growing much faster than expected.To some extent,it has shaken the position of the coffee giant Starbucks.Starbucks,the iconic brand of the coffee chain,is growing rapidly and steadily in China,with 4,125 stores in the fiscal fourth quarter of 2019,up 17% from a year earlier.During the reporting period,Luckin disclosed that it had misrepresented its financial position,and that it had overstated its sales by about 2.2 billion yuan in the second to fourth quarters of 2019.Although the incident caused serious crisis of confidence and stock prices plunged,but is the purpose of financial fraud by whitewash financial statements to attract investors,have continued in the stock market financing,increase the company value,belongs to cater for the capital market to take illegal means,and the research direction of this paper is two coffee chain business model,does not belong to the same category,the data are also in the first quarter of2019 before the sales data.The incident exposed the Luckin Coffee in a serious shortage of value realization link,which is under the background of the Internet,new retail challenges the traditional retail business model innovation in the process of the typical problems,so the comparison of two companies business model and implementdifferent optimization,complement each other,even more has the significance and practical significance.This paper uses literature combing and case analysis to study the business model of Luckin Coffee and Starbucks,and draws the basic conclusion that their value propositions are different.Luckin Coffee provides high cost-effective coffee anytime and anywhere,while Starbucks advocates the consumption experience and cultural identity attached to high-quality coffee.In terms of value transmission and value realization,both sides have their own unique advantages and competitiveness.