Cotti Splashes Past 10,000-Store Milestone, Fueled By Relentless Price War
Portfolio Pulse from The Bamboo Works
Cotti Coffee, led by Lu Zhengyao, has surpassed 10,000 stores, driven by aggressive price wars against Luckin Coffee. While this strategy has impacted competitors like Luckin and Starbucks, it raises concerns about Cotti's long-term sustainability. The company is exploring international expansion as a potential growth path.
October 29, 2024 | 4:49 pm
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NEGATIVE IMPACT
Cotti Coffee's aggressive pricing strategy has negatively impacted Luckin Coffee, leading to a decline in same-store sales and a quarterly loss. The ongoing price war poses a threat to Luckin's financial stability.
Cotti's aggressive pricing has forced Luckin to lower its prices, resulting in a 20.9% drop in same-store sales and a quarterly loss. This indicates a negative short-term impact on Luckin's financial performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Starbucks has experienced a decline in same-store sales in China due to Cotti Coffee's low-price strategy. This competitive pressure could affect Starbucks' market share and profitability in the region.
Cotti's low pricing has led to a 14% decline in Starbucks' same-store sales in China, indicating a negative impact on its market position and potential short-term financial performance.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 60