Positioning in the upstream supply chain:
Luckin Coffee’s Indonesian coconut sourcing strategy
Image source: WeChat public account luckincoffee Luckin Coffee
This move continues Luckin's strategic path of building a global high-quality raw material production base in recent years: from coffee bean bases in Brazil and Yunnan, to the jasmine exclusive production area in Hengzhou, Guangxi, and now the Indonesian coconut source layout, its supply chain map has covered three continents.
The core driving force behind this strategy is the continued outbreak of the super single product, Raw Coconut Latte - as of January 2025, the cumulative sales of this product exceeded 1.2 billion cups in four years since its launch, and 700 million cups were sold in 2024 alone, consuming more than 500,000 hairy coconuts per day, making Luckin one of the largest coconut consumption beverage brands in the Chinese market.
02
Resource endowment and industrial synergy:
The strategic value of Indonesian coconut resources
As the world's largest coconut producer, Indonesia's total coconut production in 2023 will exceed 2.8 million tons, accounting for 38% of the global export market. Its tropical rainforest climate and volcanic ash soil nurture coconuts known for their rich coconut fragrance and sweet fruit juice. The Banggai Islands are also famous for their traditional planting techniques passed down from generation to generation. The coconuts produced are rich in minerals and vitamins, which are highly consistent with Luckin's product upgrade needs.
The deeper strategic consideration is to build an industrial collaborative ecosystem. Luckin not only purchases raw materials, but also plans to invest in the construction of agricultural planting centers to increase local production capacity through technology output.
This "industrial investment + technology empowerment" model not only ensures the quality and supply stability of raw materials, but also reduces costs and increases efficiency by improving local planting efficiency, and also provides a foundation for Luckin's long-term layout.
03
Three major revelations from corporate globalization
Luckin’s Indonesian practice provides a replicable strategic template for overseas companies:
Resource positioning strategy
Panda Overseas recommends that companies learn from Luckin's model, focus on Indonesia's advantageous resources such as nickel ore and palm oil, and build a full-chain layout of resources-production-market.
Industrial symbiosis thinking
This "commercial investment + community development" model not only meets the Indonesian government's requirements that foreign-funded enterprises must drive the local economy, but also effectively avoids supply chain risks.
Currently, Indonesia is preparing to establish a special department for the coconut industry, and companies can strive for policy support through industrial collaboration.
Capturing policy dividends
Luckin's case proves that deeply binding corporate strategy with the host country's industrial policy can significantly reduce the cost of going overseas.
Luckin's layout in Indonesia reflects the new logic of global competition: under the ESG (environment, society, governance) framework, the supply chain management of enterprises is shifting from cost orientation to value co-creation.
By establishing a full-process traceability system "from seeds to cups", Luckin not only ensures product quality, but also transforms sustainable development into brand premium.
This overseas model that deeply integrates local economic, ecological and social values may become the standard paradigm of Chinese enterprises in the era of globalization 3.0.
PDAEXSEA Indonesia empowers Chinese companies to deepen localization
As a professional service organization that has been deeply involved in the Indonesian market for a long time, PDAEXSEA Indonesia has always been committed to providing enterprises with full-cycle overseas solutions based on its political and business resource network and localized operation team accumulated over the years. With a deep understanding of Indonesia's policies, regulations, industrial ecology and cultural environment, we can provide enterprises with:
Tailor-made business inspection plans, accurately connecting with local characteristic industrial cluster resources such as manufacturing and retail;
Through in-depth market research to gain insight into consumption trends, we help enterprises seize the structural opportunities of Indonesia's 270 million population market;
Relying on government cooperation channels and industry databases, we build a service closed loop for investors from policy consultation, document application, resource matching to investment implementation;
In view of Indonesia's complex fiscal and taxation regulatory system, PDAEXSEA provides localized fiscal and taxation compliance consulting and implementation support to assist enterprises in accurately interpreting tax policies, optimizing cost structures, avoiding compliance risks, and ensuring that the entire operation process complies with Indonesian laws and regulations and international accounting standards.
Indonesia's open investment policy and huge economic potential have created unprecedented opportunities for Chinese companies to enter the Indonesian market. PDAEXSEA is willing to become a strategic partner for companies to explore the Indonesian market and help Chinese companies build a sustainable development model with both commercial value and social benefits with professional services.
PDAEXSEA Indonesia looks forward to your visit:
Sarinah Building, 12th Floor ，Central Jakarta
延伸阅读：
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