A Comparative Study of Digital Innovation Paths in the Coffee Industry: Starbucks and Luckin Coffee in the Era of Digital Economy

Abstract

The coffee industry is going through changes and innovations driven by the digital economy, which is reshaping how companies compete. This paper focuses on two major brands, Starbucks and Luckin Coffee, as case studies to compare two different approaches: the "digital transformation" of an established global brand, and the "digital native" model adopted by a fast-growing challenger. The study analyzes Luckin’s data-native strategy, which relies on precision marketing, smart supply chain management, and asset-light operations to enable quick innovation. In comparison, Starbucks builds on its well-known "Third Place" concept, combining digital platforms with offline experiences to extend its brand and deepen customer engagement. Although digital innovation improves operational efficiency and capabilities, it also brings challenges such as rising costs, data privacy concerns, and the risk of increased market monopoly. These issues may widen the digital divide and create higher barriers for small and medium-sized enterprises. To tackle these problems, companies should plan their digital economic strategies based on their own resources and abilities. This allows them to make the most of digital benefits while managing risks. Looking ahead, the industry should explore new technologies like AIGC and digital twins. Especially when expanding overseas, it is important to adapt digital strategies to local markets to ensure they fit in and succeed.