China’s embattled Luckin Coffee adds lifestyle products to its menu [TechCrunch Blog]
Aurora Mobile Limited - American Depositary Shares (JG)
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Source: TechCrunch Blog
The Luckin saga continues as the Chinese coffee challenger seeks solutions to the undesirable consequences of a$310 million fraudannouncedopening ten outletsAnother recent endeavor of the coffee delivery startup offers a reminder that the NASDAQ-traded company not only aims to take onStarbucksIPO prospectusone-week sales campaignLuckin began touting lifestyle merchandise inthe third quarter of 2019climbed fromIt may seem odd that a coffee chain is selling sanitizing wipes and trash bags, but the approach could point to a long-standing strategy in the internet business in China: To quickly build up a user base through a competitive product and monetize later through a peripheral but lucrative business.Heavily subsidized coffee has been Luckin’s engine of user acquisition. Its lifestyle and daily products currently come with deep discounts as well, so the question is whether they will comprise the company’s cash cow when the perks are gone. After all, why would consumers shop for daily
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