The Overseas Race of China's Beverage Giants
In 2026, two giants of China's beverage industry — Chagee and Luckin Coffee — are competing more fiercely than ever in overseas markets. Their expansion strategies are fundamentally different, yet both have achieved remarkable results.
Chagee: Global Ambassador of Eastern Tea Culture
- Global stores: 7,453 (as of early 2026)
- Overseas presence: Malaysia, Singapore, Thailand, USA, Indonesia, Philippines, Vietnam, South Korea
- 2025 GMV: 31.5 billion RMB
- Core strategy: "Eastern Tea" culture as the core selling point, positioning as premium tea brand overseas
Luckin Coffee: Digital-Driven New Retail Model
- Overseas stores: 208
- Markets covered: Malaysia, Singapore, Thailand, USA, Indonesia
- Core strategy: Replicating domestic digital operations model, rapid customer acquisition through high value and convenience
Strategy Comparison
| Dimension | Chagee | Luckin |
|---|---|---|
| Positioning | Premium Eastern Tea | Value Coffee |
| Store Format | Large experience stores | Small pickup stores |
| Digital Level | Medium | Very High |
| Cultural Output | Strong (Eastern Aesthetics) | Weak (Functional) |
| Overseas Growth | Fast | Steady |
Implications for Franchisees
The overseas competition between these two brands provides rich choices for franchisees: investors seeking cultural experience and brand premium can explore the Chagee model, while those pursuing quick ROI and high-frequency consumption may prefer Luckin's model. Regardless of choice, deep understanding of the target market's consumer habits and competitive landscape is essential.