Introduction:Thirty-nine-seven days after the opening of its first store, Luckin Coffee officially launched its new tea beverage sub-brand "CHA MAO" (Tea Cat), positioning it as a health-focused fresh leaf milk tea brand. The first batch of stores has begun internal testing in Ningde, Fujian. Following the price war in the coffee market, this move enters the highly competitive tea beverage market with a promotional price of 6.9 RMB. Can it replicate its previous success? This article analyzes its product strategy, franchise model, and supply chain advantages, providing insight into the potential impact of this new challenge.

Thirty-nine-seven days after the opening of its first outlet, Luckin Coffee announced the launch of its second brand, "CHA MAO," officially entering the tea beverage market. This new brand is positioned as a specialty drink shop focusing on healthy milk tea. The first stores have quietly opened in Pingnan County, Ningde City, Fujian Province, and are currently undergoing internal testing.

According to Li Yingbo, Chief Strategy Officer of Luckin Coffee, "CHA MAO" focuses on the fresh leaf milk tea category, with a product line that includes pure teas, fresh fruit teas, and other diverse options, clearly targeting current consumer interest in health and natural ingredients.

Although the full menu has not yet been publicly disclosed, some netizens have revealed that CHA MAO’s initial flagship products include a zero-non-dairy-creamer genuine tea series, Wuchang rice milk tea, coconut pure beverages, milk tea, and a variety of fruit teas and pure teas. Prices generally range around 16 RMB, placing them in the mid-tier range—comparable to brands like Chagee and Guming, but noticeably higher than the low-price strategy of Mixue Ice Cream & Tea.

Notably, "CHA MAO" continues Luckin’s usual low-price promotion tactic, currently offering a special deal of just 6.9 RMB per cup, attracting significant consumer attention. This pricing strategy has not only sparked widespread discussion but is also seen by the industry as a means for the brand to quickly build awareness.

Some analysts point out that this move by Luckin may be an attempt to find new growth points amid intensifying competition in the coffee market, leveraging its established network of affiliated partners and mature supply chain to expand into the tea beverage sector. The affiliate model remains the primary expansion method for "CHA MAO." According to Luckin’s recruitment personnel, the investment for a standard store (including decoration and equipment) is about 350,000 RMB, while a quick-service store is 200,000 RMB. This includes a 50,000 RMB inventory guarantee deposit, 100,000 RMB for equipment, and 50,000 RMB for decoration.

In terms of supply chain, Luckin Coffee, with nearly 6,500 stores globally, has successively established the Hudex East China Supply Chain Base and the Wuhu International Supply Chain Base, covering a total area of 360,000 square meters, with plans to gradually commence operations in early 2024. Li Yingbo emphasized that "CHA MAO" will fully integrate the existing supply chain, intelligent management systems, operational frameworks, and existing customer base to achieve maximum resource synergy.

Although the market performance of "CHA MAO" remains to be seen, many netizens have already raised questions about its low-price strategy and product quality—for example, "Can it really be healthy and tasty at just 6.9 RMB?" Observers are also curious whether positioning CHA MAO stores near Mixue Ice Cream & Tea could further drive down the overall price range of the tea beverage market, potentially triggering another round of price wars.

The industry generally believes that as a "disruptor" in the coffee sector, Luckin’s foray into the tea beverage market undoubtedly adds another variable to the already fiercely competitive ready-to-drink tea industry. Whether it can successfully replicate its coffee market expansion model and establish a solid foothold in the tea beverage circle are both worth continued attention.

The above content is compiled by CoffeeHunters, a coffee news website.