At a price of 9.9 yuan, Luckin Coffee has launched OATLY oat milk latte, which has once again attracted nationwide attention. As we all know, popular coffee chains and boutique cafes currently use OATLY oat milk in their oat milk latte, which is typically priced in the range of 20-40 yuan.
After a brief analysis, it is clear that Luckin's move to enter the market with a 9.9 yuan OATLY oat milk latte has hit the bottom price of the industry and will undoubtedly ignite a price war in the trendy oat milk latte sector of the Chinese coffee industry.
9.9The price war is back, and it's shaking up the oat milk latte market
According to Meituan's "China Coffee Consumption Insights" report, from 2021 to 2022, oat milk latte consistently ranked among the top ten best-selling coffee drinks for delivery. However, due to various factors such as raw material costs, the price of oat milk latte has always been much higher than other coffee categories in the past few years.
At the same time, under the trend of healthy consumption, oat milk latte has become a symbol of young people's personality, fashion, and eco-friendly lifestyle attitude, which has resulted in the high price of oat milk latte, which should have been more affordable, being somewhat unattainable for some people.
In fact, OATLY oat milk did not receive much attention when it first entered the Chinese market. It was not until OATLY adjusted its product positioning, started cooperating with well-known coffee chains such as Starbucks, and officially entered the coffee market that it began to thrive, and of course, its price also increased. After several years of rapid growth, OATLY began to enter tea drinks, bakery, and dining sectors to promote the concept of "healthy, low-carbon, and fashion" to the middle-class consumers. Major brands have always been happy to see their products obtain a premium and no one was willing to burst the high-priced "bubble" of oat milk.
This time, Luckin Coffee has lowered the price of OATLY oat milk latte to 9.9 yuan, directly breaking the "noble aura" of oat milk latte and bursting its high-priced "bubble".The "price war" is just a facade, and the real key is probably to initiate a full-scale price shuffle of oat milk latte in the Chinese market.
It must be acknowledged that in the era of "quality-price ratio is king" consumption, "I can't afford it because it's too expensive" has become the embodiment of contemporary young people's realistic consumption beliefs. Brands with "high quality and affordability" are more likely to attract the new generation of consumers. Who wouldn't love Luckin's high-quality oat milk latte priced at 9.9 yuan?
It's worth noting that Luckin's OATLY oat milk latte uses the same OATLY oat milk that major coffee chains are using.With the quality level maintained and the price cut down to 9.9 yuan, Luckin has relied on long-term accumulated scale, deep supply chain, and brand influence to make this daring move.After all, bursting the high-priced "bubble" is not as simple as just lowering the price. It tests the comprehensive strength of enterprises in multiple aspects, such as upstream supply chains, downstream bargaining power, brand value, and brand size.
Counter-attacking "Food Assassin," it's now the turn of oat milk latte.
When OATLY first entered the Chinese market, it quickly welcomed the country's new consumption wave. Capital was waving the banner of "consumption upgrade" and was determined to remake all traditional consumer products with internet thinking. At that time, as long as it was related to the keywords of "lifestyle" and "consumption upgrade," it could easily attract young people and middle-class consumers who were keen on trying new things. For a time, various "internet-famous products" emerged in the new consumer track, including high-priced bread, fruit assassins, and expensive ice cream, among others.
Looking at the current Chinese consumption market, it has already undergone earth-shaking changes. The slogan of "consumption upgrade" has long been replaced by more rational consumption concepts, and consumers have begun to demystify various consumption concepts. The market trend has also undergone significant changes. In the era of "quality-price ratio" consumption, consumers have become more wary of the "middle-class trap" around them and have shown more caution and rejection towards products that are excessively pricey.
Once upon a time, a cup of milk tea cost over 30 yuan. However, under the trend of "consumer downgrading", brands such as "Being Awake" have begun to pay attention to consumers' sensitivity to high-premium products. In 2022, new tea drink brands have successively reduced prices, announcing the "farewell to the era of 30 yuan high-end milk tea", followed by a series of affordable products from various tea drink brands.
Every "food assassin" being killed will stir up the whole industry and trigger a chain reaction. The same goes for the coffee race, and this time it's the "oat latte".
It can be foreseen that when Luckin introduced the "oat latte" at a price of 9.9 yuan and brought its price back to a reasonable range, other coffee chain brands will inevitably re-examine product operation and pricing, and even force the upstream industry to continue to evolve. In the end, more consumers will be able to drink a truly good cup of coffee at a reasonable price.This will inevitably push other coffee chain brands to re-examine product operation and pricing, and even force the upstream industry to continue to evolve. In the end, more consumers will be able to drink a truly good cup of coffee at a reasonable price.
Image source: Xiaohongshu