Chinese Coffee Chains Shift Strategy as Cheap Pricing Loses Appeal - Class B
Chinese coffee chains expanded rapidly by offering very low prices, but this strategy is now becoming less effective. Companies like Cotti Coffee are reducing discount campaigns and focusing more on product quality and customer experience.
At the same time, brands such as Mixue and Luckin Coffee are upgrading their products, using better ingredients and equipment. They are also expanding into international markets, including Southeast Asia and the United States.
However, experts warn that success abroad is not guaranteed. Consumers in other countries often value quality, brand image and experience more than low prices.
Audio Session
Chinese Coffee Chains Shift Strategy as Cheap Pricing Loses Appeal
Class B
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Difficult Words
- strategy – a plan to achieve a goal
- campaign – a planned set of actions
- upgrade – to improve something
- ingredient – a part used to make food or drink
- guaranteed – certain to happen
Additional Info
- What strategy helped Chinese coffee chains grow?
- Why are companies reducing discounts?
- What changes are brands making to their products?
- Why might expansion abroad be challenging?
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