Are Chinese consumer brands challenging global chains?

A new wave of Chinese consumer brands is starting to push out into global markets. Complacent Western giants are not nearly ready for the threat that they pose

Chinese Flags and Chinese consumer brand Luckin Coffee Sign in Chengdu
(Image credit: Cheng Xin/Getty Images)

Forget the Budget. Forget the US presidential election. In the end, neither will make much difference to companies or to investors one way or the other. Something far more significant is happening, even if few are paying much attention to it. A new wave of Chinese consumer brands is starting to push out into global markets.

The coffee market might already look hyper-competitive, but it is about to get a lot more crowded. Last week, China’s largest chain, Luckin Coffee, said it was planning to launch in the US market next year. It has already started advertising during sports events and has built up a list of initial locations in cities with lots of Chinese students and expats. It plans to undercut the big US chains by selling coffee in the $2-$3 price range, instead of the $5-plus for the big cups that have become the norm at Starbucks and many of its rivals.

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Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.