A Go-global Success Story: Synear Food

In the landscape of Chinese brands going global, Synear Food's journey stands as a condensed textbook on internationalization. From its initial foray with export qualifications in 2003 to the brand-defining breakthrough of its Pork & Cabbage Dumplings entering US Sam's Club in 2025, Synear has spent over two decades strategically upgrading from simple product exporting to true "brand globalization," successfully cracking the vast US market. Concurrently, it has successfully created a second, and even third, growth curve for the China-based Synear Group. This article, based on Synear's official disclosures and related media reports, outlines its globalization timeline, current achievements, demonstrative value, and lessons for the industry.

Globalization Timeline & Key Phases:

Synear's overseas expansion can be divided into several key phases:

Initial Export Phase (2003-2015): The company obtained its export food production enterprise filing qualification in 2003, initiating its exploration of overseas markets. It primarily exported traditional products like frozen dumplings and glutinous rice balls to overseas Chinese communities through foreign trade channels.

Localized Production Phase (2015-2018): 2015 was a pivotal turning point. To circumvent US FDA restrictions on imported meat-containing products, Synear decisively acquired the former Nestlé Hot Pockets factory in Chatsworth, Los Angeles, California, spanning approximately 190,000 square feet (~17,700 sqm). This move not only provided ready-made production facilities and a local supply chain but also bypassed trade barriers. By December 2018, the Los Angeles plant was fully operational, specifically producing frozen products tailored to US market demands. Within three years of operation, its local sales volume surpassed the total volume exported from China to the US over the previous decade. Orders in the first half of this year have already exceeded total sales for the entire previous year, validating the success of the localized production strategy.

Channel Penetration Phase (2018-2021): First, Synear partnered with Walong, the largest Asian food wholesaler in the US, leveraging its distribution resources to enter 99 Ranch Market, establishing a brand foundation. It then expanded further into H Mart, T&T Supermarket, and others, reaching a broader Asian and mainstream consumer base. Subsequently, Synear collaborated with Weee!, the largest Asian e-commerce platform in North America, becoming a primary supplier of frozen rice and noodle products, with weekly sales exceeding 1,000 units.

Full Brand Leap Phase (2021-2025): In 2021, its Shaomai and Soup Dumplings entered mainstream US chains like Costco, Vons, and Albertsons for the first time. In 2025, its Pork & Cabbage Dumplings successfully entered Sam's Club, marking its full entry into the mainstream US retail market and achieving the strategic upgrade to "brand globalization."

The capacity of Synear's US factory can no longer meet market demand, and plans are underway to double its scale this year. Furthermore, the development of Synear US has reciprocally boosted exports from its China headquarters. In 2022 alone, Synear China exported 800 batches of various foods, approximately 500 containers, with a value of about RMB 250 million, with the North American market contributing the major share.

Analysis of Synear's Brand Globalization Experience:

1. First, Identifying the Right Market
Reports indicate that when Synear first entered the US, it observed that the signature dishes at Panda Express, the largest Chinese restaurant chain in the US, were items like Orange Chicken and General Tso's Chicken – flavors virtually unheard of in China and seemingly having little connection to the profound depth of authentic Chinese culinary culture.

Does this mean Americans dislike authentic Chinese food? Actually, no. Americans who have tried Synear products consistently praise them as delicious. There is definitely a market for authentic Chinese food in the US.

Beyond national pride, the US is an extremely lucrative large market. Americans have established habits of consuming frozen foods, with per capita consumption being 60 times that of China! Once a product gains favor among locals, the market can experience geometric growth.

Simultaneously, for businesses, profit margins are often higher in the US market. For example, Synear's glutinous rice balls, which sell for RMB 6 per bag domestically, can be sold for $3.66 (approx. RMB 26) in the US.

Moreover, the Chinese diaspora in the US represents a high-quality consumer segment that cannot be ignored. The unofficial saying goes, "The three treasures for Chinese in America - instant noodles, Lao Gan Ma, and Synear dumplings." Official data counts 5-6 million Chinese in the US, with unofficial estimates exceeding 10 million. The median annual income for this group is over $100,000. Capturing the "Chinese stomachs" of this demographic also cultivates a high-growth niche market.

2. Localized Innovation
To cater to American taste preferences and fast-paced lifestyles, Synear developed adapted products like Chicken Dumplings and introduced more easily prepared microwaveable frozen foods. The Pork & Cabbage Dumplings launched in Sam's Club in 2025 retained their traditional essence but underwent localized adjustments to the filling ratio and wrapper texture, preserving their "Chinese soul" while aligning with American consumer preferences.

Additionally, partnering with CMTC to enhance packaging appeal was a significant breakthrough. While Synear US had successfully sold its frozen products in Chinese-centric supermarkets, it aimed to significantly expand its reach by entering mainstream retail channels. The existing packaging appealed to Chinese customers but lacked the brand image and "visual feel" to resonate with average American consumers. CMTC provided a shortlist of potential brand names, conducted preliminary trademark searches, and assisted in finalizing the choice.

Subsequently, CMTC designed a universal graphic logo for potential products targeting the mainstream US market and created visually impactful packaging for Synear products, making them stand out on shelves and clearly communicate product features and benefits. These efforts successfully facilitated the promotion of Synear's products to a broader American consumer base and their entry into mainstream US channels.

3. Focusing on "Breakthrough Products + Channel Deepening"
Synear focused on establishing market recognition with distinctive products possessing cultural identity. It first deeply penetrated Chinese communities and Asian supermarkets to accumulate sufficient order volume before advancing into mainstream channels, thus avoiding resource dilution.

Synear strategically partnered early on with Walong, the largest Asian food wholesaler in the US. It then leveraged Walong's distribution resources to enter 99 Ranch Market, H Mart, T&T Supermarket, etc., gradually covering a wider Asian and mainstream consumer base.

Next, Synear collaborated with major Asian e-commerce platforms like Weee! and Yamibuy. Leveraging the influence of e-commerce, it further broke into mainstream channels like Costco and Sam's Club, achieving comprehensive coverage from offline Chinese supermarkets, to online platforms, and finally to the mainstream market.

Lessons from Synear's Successful Globalization:

Localized Production to Overcome Trade Barriers: Establishing overseas factories not only solves policy bottlenecks (e.g., FDA restrictions) but also enhances overall operational efficiency and local responsiveness.

Channel Partnership as the Conduit, Brand Building as the Goal: Collaborating with local channel giants like Walong, 99 Ranch, H Mart, and Weee! provides an efficient pathway to quickly enter target US markets and enhance brand awareness.

Dual-Track Model: Serve the Ethnic Niche + Enter the Mainstream: Starting from the Chinese and Asian markets before expanding to mainstream channels reduces market education costs while broadening consumer reach.

Export Linkage Effect: Success in the US market reciprocally drives export growth for the China headquarters, creating an industrial linkage mechanism where "global expansion promotes reverse flow."

As the domestic market becomes increasingly competitive and the international landscape dynamic, it is sincerely hoped that Chinese brands can learn from Synear's globalization experience and demonstrate their strength on the vast world stage.

"After Apple, It's Pop Mart": The Blind Box Brand's Breakout

01｜ The Line Around the Corner in SOHO

On a Saturday afternoon in New York's SOHO district, sunlight bathed the cobblestone streets.

Amidst the perfumeries, designer boutiques, and pop-up shops, a trendy toy store with a long queue outside its door stood out. Its logo was a bright yellow smiling face – it was POP MART from China.

"We took the subway from Brooklyn to try for a limited edition LABUBU."

"It's my first trip to the US, and I heard from a friend the lines here are even crazier than back home."

The line included Asian international students, local Gen Zers, and American families with children.

Taking photos outside and unboxing blind boxes inside had become their weekend "check-in ritual."

According to US real estate media reports, the store's average daily foot traffic is second only to the Apple SOHO flagship store, far surpassing clothing, fragrance, and beauty brands on the same street.

This is no coincidence.

In the US, POP MART is becoming a new cultural phenomenon –
both an Eastern trend symbol and a cultural experiment in "surprise economy."

02｜ Three Cities, Three Stories

(1) New York: A Confluence of Trends and Socializing

The SOHO store is like a "real-life TikTok live stream."
Moments of customers unboxing blind boxes are filmed as short videos, quickly landing on local trendy toy topic lists after being uploaded.

The store launches daily limited editions, with series like LABUBU, DIMOO, and Skullpanda rotating on shelves.

Behind each series lies POP MART's brand strategy –
building "social currency" through visual impact and emotional resonance.

In blind box culture, consumers aren't just buying a doll; they're buying a "shareable surprise."

Takeaway ①: Turning products into social content is the most efficient way for brand dissemination.

(2) California: From "Asian Brand" to "Family Entertainment"

At the POP MART store in Los Angeles, the customer base is distinctly different.
Parents hold their children's hands, picking boxes, taking photos, and sharing.
Holiday-limited items like "Christmas LABUBU" became hit gifts; the "Gentle Series" launched around Mother's Day was featured in local family media as "the best toy for parent-child play."

Within the American cultural context, POP MART has found an unexpected positioning –
it's both a trendy toy for young people and an emotional experience shared by families.
Here, "surprise" is no longer an individual pleasure but a common topic for families.

Takeaway ②: Cultural products should find emotional resonance points, not compete on price.

(3) Chicago: From Pop-ups to Collecting

The pop-up store in Chicago focuses on "Art and Collection."
The exhibition area is no different from a gallery; limited edition IPs are paired with lighting and backdrop walls, elevating blind boxes into "mini art sculptures."

The customers here are primarily art students and designers, with many reselling rare pieces on the secondary market.

POP MART is transforming "blind boxes" from entertainment consumer goods into collectible cultural commodities.

The US trendy toy media Toy Chronicle commented:
"What POP MART is doing is turning 'toys' into 'cultural carriers.'"

Takeaway ③: Only by shifting from selling products to selling a sense of value can a brand truly establish itself in the mainstream market.

03｜ The Power of "Cultural Translation"

POP MART's success lies not in the blind box itself, but in its power of "cultural translation."

• Restructuring Spatial Language:
US store designs are brighter with more negative space, and use higher color temperature lighting compared to stores in China.

This aligns with American consumers' aesthetic expectations for "display spaces."

• Localization of Language and Concepts:
Store staff no longer directly translate "盲盒" as "Blind Box,"
but use the more positive term "Surprise Box."

This change helped an unfamiliar concept gain quick acceptance.

• Integration with Holidays and Culture:
Halloween LABUBU, Christmas limited editions, and the Spring Garden series
allow Chinese IPs to naturally "grow locally" within American holiday atmospheres.

Takeaway ④: Going global isn't about exporting culture, but about retelling it.

04｜ The American Opportunity for the Blind Box Economy

The US market's acceptance of "trendy toys" is rapidly increasing.
According to NPD Group data, the US art toy market has seen an average annual growth of over 25% in the past three years.

Among younger generations, "collectible toys" are seen as a new form of investment and a social label.

POP MART's entry aligns with three trends:
1️⃣ Gen Z's search for "stress-relief entertainment";
2️⃣ The resurgence of small-format, high sales-per-square-foot retail;
3️⃣ Eastern visual aesthetics becoming popular symbols.

Simultaneously, it's making the US retail sector rethink:
Why can a Chinese brand, with its "small but beautiful" store model, achieve higher sales per square foot than American chains?

Because POP MART isn't just "selling products"; it's "managing surprise."

05｜ Three Globalisation Logics of the Brand

1️⃣ Small Format, Big Impact
Each store is typically under 80 square meters yet achieves ultra-high sales per square foot.
For expensive American retail districts, this is a light and highly efficient commercial solution.

2️⃣ Social is Propagation
Consumers spontaneously generate content on social media, creating a UGC flywheel effect.
From TikTok to Instagram, POP MART's content dissemination efficiency far exceeds that of traditional advertising.

3️⃣ Emotion-First Localization
It doesn't forcefully push "Eastern aesthetics," but uses universal emotions like "surprise," "healing," and "companionship" to achieve cultural connection.

These three logics are also key competitive advantages for Chinese brands in the era of globalization.

06｜ Conclusion: From Surprise to Resonance

Morgan Stanley noted in a recent research report:
"In the US market, POP MART currently has no direct competitor."

But what's truly fascinating isn't the "lack of competitors,"
but how it's helping more Americans begin to understand –
that designs from the East can also deliver gentle emotional value.

From New York's SOHO to street corners in California, POP MART isn't just selling toys.
It's selling a moment of anticipation, a random piece of joy, a culture that feels understood.

As more and more American consumers open those little boxes,
what they are unboxing might just be a new world:
A moment of surprise, belonging to Chinese brands, shared across the globe.

Genki Forest's Go-global Road: from Amazon to Costco

I. Introduction: A Brand Expedition Across the Pacific

In the eyes of US consumers, Genki Forest successfully carved its niche with its distinct proposition of "flavor without sugar/low calories." Its pronounced fruitiness and sweetness, characteristic of Asian flavors, set it apart from local sparkling waters, becoming a new choice for young consumers seeking health without compromising on taste. From the perspective of Chinese enterprises, this is the result of a systematic, six-year global expansion effort, transitioning from online to offline presence.

II. Channel Breakthrough: From Testing the Waters Online to Full Coverage in Mainstream Retail

1. Amazon: Data-Driven Online Breakthrough

In 2021, Genki Forest entered Amazon with its sparkling water line, breaking into the top ten of the Sparkling Water category within just six months. Its success hinged on creating a user feedback loop: leveraging platform data to precisely identify the US market pain points of "monotonous flavors and weak fruit taste," thereby emphasizing product features like "rich Asian fruit flavors and strong carbonation."

For American consumers, Amazon offered a low-barrier trial opportunity: multi-flavor sampler packs, lifestyle-oriented image displays, and FBA logistics support helped it quickly accumulate positive reviews. The proportion of non-Chinese consumers gradually increased from zero, marking a shift from a "Chinese-exclusive" item to one with a "diverse audience."

2. Costco: A Dual Challenge of Compliance and Trust Building

As the first Chinese beverage brand to fully enter North American Costco stores, Genki Forest underwent rigorous audits: third-party agencies spent 3-4 months verifying warehouses and conducting comprehensive factory inspections of its Xianning plant in China, ultimately passing the audit within three months.

For US consumers, nationwide placement in Costco served as a "badge of trust." In 2024, launching in California Costco stores at a price of $9.9 for a 6-pack, it sold over 800,000 bottles in a single month. The large pack design and tasting activities aligned with American family shopping habits, significantly boosting repurchase rates.

3. Building an Omnichannel Network

Beyond Amazon and Costco, Genki Forest utilized its independent DTC website to capture private traffic, penetrated chain channels like Walmart and 7-Eleven, and established the joint venture "Genki Forest USA" with American beverage company Reed's. This helped downplay the "Made in China" label and navigate potential procurement restrictions, forming a comprehensive network of "online + membership warehouse breakout + community retail penetration."

III. Differentiated Competition: Holistic Optimization of Product, Brand, and Supply Chain

1. Product Innovation: Global Expression of Eastern Heritage

Genki Forest launched 12 flavors featuring distinctive Asian fruits, with White Peach and Lychee becoming breakout hits. This created a clear differentiation from Coca-Cola's AHA! (5 basic flavors) and Pepsi's Bubly (single flavor profile). In 2025, it added a "North America Exclusive" energy sparkling water with natural caffeine to cater to local habits.

US consumers noted its "fruit aroma and sweetness memory" were significantly stronger than typical American 'natural essence' flavors, tasting "like flavored soda but without the sugar," forming a unique category perception.

2. Brand Communication: Cultural Symbols and Value Alignment

The brand retained the core Chinese character "气" on the bottle, incorporating Eastern elements like pandas and bamboo. Initiatives like the limited-edition New York Panda Day release and sponsoring UC dragon boat teams helped build cultural affinity. For American Gen Z consumers, this "youthful, trendy, and design-conscious" visual expression proved highly attractive.

3. Supply Chain and Cost Optimization

Initially facing a significant cost disadvantage – with shipping costs from China to the US West Coast at $0.18/can plus a 21.5% tariff, resulting in a mere 35% end-point gross margin – Genki Forest implemented strategies like building a factory in Mexico and investing in US sweetener producer Amyris. The goal is to reduce costs by 30% and circumvent tariffs.

4. Precise Price Positioning

Adopting a mid-to-high-range price of $1.5-$2.0/can – higher than Coca-Cola's AHA! ($1.0-$1.2/can) but lower than functional brands like Olipop ($2.5-$3.0/can) – allowed for differentiated pricing. This avoided price wars while attracting price-sensitive yet novelty-seeking young consumers with "high-value Asian flavors."

IV. Crisis Response and Compliance Capacity Building

Facing FDA standards, Genki Forest completed formula iterations within three months. During the 2025 sweetener controversy, it launched a component traceability page within 48 hours, partnered with a UCLA professor for a live science session, and introduced a "milder version" with 20% reduced sweetness to resolve the crisis. This rapid response capability earned trust from both channels and consumers.

V. Core Logic and Competitive Advantages from Wang Pu's Speech

In his July 2025 speech titled "Genki Forest Going Global: Youth Means Having 'Qi' (Energy/Spirit)," founder Wang Pu outlined three core advantages:

User Insight Capability: Firm belief that "the demand for healthy beverages is universal," using data to pinpoint pain points rather than simply replicating domestic products.
Cultural Fusion Innovation: Using Eastern symbols as anchors combined with international aesthetics, making culture a differentiator rather than a barrier.
Compliance and Resilience: Transforming high-standard production systems into a channel access advantage, coupled with rapid crisis response.

VI. Insights for Other Chinese Brands

Channel Strategy: Use platforms like Amazon as "testing grounds" to validate product-market fit before tackling core channels, refining compliance systems 3-6 months in advance.
Product Innovation: Retain core characteristics while adapting for specific markets: emphasize "low-sugar + functionality" in North America, adjust sweetness and ensure religious compliance in Southeast Asia.
Brand Communication: Replace the "Chinese specialty" position with universal health concepts, building emotional connections through local cultural activities.
Supply Chain Layout: Initiate overseas factory construction after sales surpass the million-unit threshold to mitigate tariff and shipping cost risks.
Risk Response: Establish ingredient traceability systems; reduce resistance from "country of origin labels" via local JVs and origin labeling optimization.

VII. Conclusion

Genki Forest's North American journey showcases a new path for Chinese brand globalization: not based on low-price dumping, but achieving genuine market penetration through product differentiation, channel refinement, and brand value creation. Its experience demonstrates that the key to successful overseas expansion for Chinese brands lies in respecting local market dynamics while maintaining their unique characteristics, finding the precise balance between globalization and localization.

Haidilao's Brand Expansion in the U.S.: A Complete Analysis

01｜ Development Journey: From the First Store to the Present US Network

First Store Opening Time and Location

Haidilao opened its first US store in Arcadia, California in 2013.

Key considerations for choosing Arcadia as its first overseas stop included:

Customer Base: The area has a Chinese population of approximately 30%, is concentrated with middle-to-high-income families, and could quickly absorb the brand's initial customer base.
Location Advantage: Its proximity to core Los Angeles business districts allowed it to reach diverse consumer groups, paving the way for future penetration into the mainstream market.

Store Count and Layout

As of mid-2025, Haidilao operates approximately 13 stores in the United States.

It is particularly active on the West Coast: The Greater Los Angeles area has 4 stores (Arcadia, Industry, Irvine, Santa Monica), with one also in San Diego. The Bay Area has two stores (Fremont, Cupertino), and a new store exceeding 7,000 square feet is planned for the Serramonte Center in Daly City. Additionally, there are two stores in Seattle.

On the East Coast, Haidilao opened its first store in Flushing in 2019, followed by a Chicago store in 2020. In 2021, it entered Texas, opening one store each in Dallas and Katy.

Corporate / Overall Overseas Operations

Haidilao's overseas operations unit is named Super Hi International, which was spun off and listed independently in 2022.

As of the end of 2023, Super Hi managed approximately 119 self-operated restaurants across about 13 countries, including the North American market.

Finance and Market Capitalization

In May 2024, Super Hi listed on the US NASDAQ (in ADS form) with an issue price of $19.56 per share, raising approximately $52.7 million and reaching a valuation of around $1.26 billion.

02｜ Strategic Positioning: Adhering to Brand Essence with Localized Adjustments

Service Standards and Brand Essence

Haidilao consistently centers its brand around "premium service and user experience." This includes complimentary snacks, fruits, hairstyling tidying, shoe shining, toys/children's play areas, and waiting lounges during wait times. These services have been specifically optimized for the US due to licensing or legal restrictions (e.g., some "manicure/massage" waiting services are canceled or simplified due to differing regulations).

Location Strategy

Haidilao in the US typically chooses locations in high-traffic shopping malls, commercial streets, or large community-edge malls, rather than concentrating solely in Chinatowns or other Chinese communities. This strategy aims to attract mainstream, non-ethnic Chinese customers. The new Daly City store exemplifies this approach.

Dish / Menu / Environment Localization

While retaining the core elements of Chinese hot pot (soup bases, dish combinations, variety of dipping sauces, etc.), Haidilao US locations adjust for local consumer taste preferences (spiciness levels, soup base options, exclusion of specific ingredients, etc.). Interior design and service processes emphasize ambiance, visible clean kitchens, and transparent service flows to meet US consumer expectations for hygiene, safety, and experience. Some stores feature large spaces, modern design, and investments in lighting, customer flow, and the queuing area experience.

03｜ Operations, Food Safety, and Supply Chain Details

Food Safety Standards and Supply Chain Control

Haidilao complies with local US food safety regulations (FDA, state/county health standards, etc.), conducts qualification audits for suppliers of meat, seafood, and vegetables, and maintains cold chain transportation and temperature control. Store kitchens and ingredient handling adhere to US health codes, with features like kitchen visibility and transparent kitchen designs further strengthening consumer confidence.

A comparative advantage is that while US food safety requirements are stringent, execution and management across various stages are highly effective. Suppliers from formal channels each fulfill their responsibilities according to regulations (e.g., organic certification, ingredient labeling, allergy alerts). This clear division of responsibility, where the end merchant isn't solely accountable for all preceding steps, significantly reduces the compliance burden on the final operator.

Cold Chain and Logistics

Haidilao's ingredients are sourced from multiple states or countries and require refrigeration/freezing. Their service quality and freshness are vital components of brand reputation. Haidilao US did not build its own cold chain storage facilities but leveraged third-party partnerships to enable rapid expansion. It is reported that Haidilao established a strategic cooperation with Walong, one of the largest Asian food wholesalers in the US, utilizing its established food import processes and large, temperature-zoned storage facilities for efficient cold chain distribution to each store.

Staff and Experience

Haidilao is renowned for "Service + Employee Experience." In US stores, employee training is strong, service processes are standardized, while incorporating some characteristic Chinese service elements (e.g., tableside service, self-selection condiment bars, complimentary snacks while queuing).

04｜ Summary of Success Factors

Based on the above development journey and strategy, key factors for Haidilao's success in the US market can be summarized as:

Strong Brand Value + Service as Differentiator: Haidilao attracts customers not just with the hot pot and ingredients, but with service experiences that exceed standards, turning "waiting" into part of the brand experience.
Location Strategy and Breaking Customer Segments: Avoiding confinement to ethnic enclaves, opting for mainstream commercial centers and shopping malls to gain exposure and traffic from non-ethnic customers.
Balance of Localization Adaptation and Core Identity: Adjusting spiciness levels, dish combinations, store design, and service models for the US market, while preserving the core hot pot experience and "Haidilao-style service."
Focus on Food Safety and Operational Standards: Adhering to local US regulations and standards, maintaining brand trust through kitchen hygiene, supplier qualifications, and ingredient cold chain management.
Leveraging Capital Markets and International Platforms: The spin-off and US IPO of Super Hi enhanced capital access and international exposure, supporting expansion and standardized operations.
Adapted Digital Marketing: Operating official accounts on Instagram and TikTok, posting content like "hot pot eating tutorials" and "employee dance videos," accumulating over 100,000 followers. In 2024, 25% of store customers were driven by social media. Its TikTok marketing employs localized content strategies, such as custom beer clinking AR effects for the US market, enhancing user interaction.

05｜ Lessons for Other Brands

From Haidilao's US path, other Chinese brands (e.g., in bubble tea, snacks, e-commerce food) can learn the following:

Prioritize "Service + Experience" before just selling the product; customer experience can be a powerful shaper of brand differentiation and loyalty.
Don't limit store locations solely to Chinese markets; if a brand can balance experiential standards with cultural communication, it can appeal to non-Chinese customers in mainstream consumer markets.
Combine capital and operations to drive expansion: Utilize international capital markets, IPOs, etc., for funding and brand influence, while maintaining standardization in store operations and staff training.
Innovation and localization require continuous effort: Menu adaptation, store design, social media marketing all need dynamic adjustment; don't assume successful formulas from China can be entirely replicated.
Front-load Compliance: Consult local compliance advisors before entering the US market to avoid legal risks.

06｜ Conclusion

Haidilao's expansion in the US was not achieved overnight. It was progressively rolled out through a combined push of "brand essence + high standards + local adaptation + integration of capital and operational resources." From the first store opening in Los Angeles to the ongoing opening of new stores in the Bay Area, selection of mainstream mall locations, and listing on international capital markets, this trajectory charts the evolution of a Chinese brand overseas from an "ethnic Chinese restaurant" to a "cross-cultural dining brand." If other Chinese brands entering the US market can learn from Haidilao's experiences, they will be more likely to gain a firm foothold in the mainstream market and achieve true "brand globalization."

How Luckin Coffee is Making a U.S. Comeback

Luckin Coffee's 2019 accounting scandal became a cautionary tale in global business textbooks, exemplifying the pitfalls of "rapid expansion + governance failures." The company underwent top-level restructuring, was delisted from Nasdaq, and faced regulatory penalties. By 2024-2025, Luckin had achieved a significant business and financial recovery in its core markets like China, while also taking its first crucial steps into the US market. This story isn't about forgetting the past, but about strategic reinvention combined with rigorous execution.

Source: Luckin official site

01 | Strategic Pillars of a Successful Recovery

Luckin's relaunch is built on three mutually reinforcing pillars: operational restructuring, a digital-first customer economy, and a highly targeted market entry approach.

Operational Restructuring: Asset-Light + High-Efficiency Retail Format
Luckin's initial US stores adopt a small-format pickup counter model with little to no seating, prioritizing app ordering and digital payments. This approach significantly reduces rent, labor, and fixed costs, lowering the risks associated with store expansion and site selection. Locations are chosen in dense urban areas like New York with high commuter and student populations, facilitating rapid operational data collection and iterative adjustments.
Pricing and Promotions as Customer Acquisition Levers
In the US, Luckin's beverages are priced approximately 20% lower than Starbucks. It uses incentives like first-order discounts, coupons, and free items to quickly attract users into its app ecosystem. These promotions aren't just about "low prices"; they are a key strategy to guide consumers towards becoming repeat users, integrating them into the loyalty system, and expanding brand reach.
Precise Positioning + Localized Menu & Experience Innovation
Luckin is not rushing a nationwide rollout. Instead, it selects densely populated cities receptive to new experiences as testing grounds. While retaining some "Asian/Chinese flavor" innovations (e.g., fruit-flavored drinks, cold brews, coconut flavors), its US menu also undergoes localization adjustments in taste, drink strength, and sweetness to cater to American consumer preferences.

02 | Competitive Benchmark: Luckin vs. Starbucks vs. Dunkin' in the US Market

Luckin Coffee, Starbucks, and Dunkin’ each occupy very different positions in the U.S. market. Luckin is still in its pilot phase, operating only its first two New York City stores as of mid-2025, while Starbucks has more than 17,000 U.S. locations across varied formats—including cafés, Drive-Thru stores, and flagship Roasteries—and Dunkin’ maintains roughly 9,000–10,000 mostly franchised stores with especially strong coverage in suburbs and smaller cities. Their formats and customer experiences also diverge: Luckin focuses on compact pickup-oriented stores with minimal seating and heavy reliance on digital ordering, whereas Starbucks blends seating, Drive-Thru, and mobile ordering to support a more hybrid “stay or go” experience. Dunkin’ emphasizes convenience and speed through café and Drive-Thru formats, offering seating but centering on everyday utility.

Pricing strategies naturally follow. Luckin usually enters markets with aggressive promotions—such as first-order discounts and frequent coupons—keeping prices generally below Starbucks. Starbucks maintains premium pricing supported by its brand equity, supplementing it with selective promotions. Dunkin’ positions itself as mid-to-low tier with an everyday value focus, supported by regular deals and a strong rewards program. These strategies tie closely to their digital ecosystems: Luckin’s app is the heart of ordering and loyalty, though its U.S. user base is just beginning to form; Starbucks Rewards has tens of millions of active members and is considered one of the most mature engagement platforms; and Dunkin’ Rewards (formerly DD Perks) supports high-frequency users with promotions and mobile convenience.

Brand positioning further separates the three players. Luckin enters as a digital-driven disruptor prioritizing convenience and value and appealing most strongly to younger, experience-seeking consumers. Starbucks remains the category-defining leader, known for its consistent quality and broad appeal across demographics. Dunkin’ maintains an approachable, everyday persona rooted deeply in suburbs and non-premium markets. Each faces distinct challenges: Luckin must prove long-term profitability in the U.S., localize effectively, and build trust as a newcomer while managing high promotional spend. Starbucks navigates rising labor and rent costs, evolving customer expectations, and the pressure to balance its premium image with mainstream demand. Dunkin’, meanwhile, must strengthen differentiation, ensure consistency across its franchise-heavy network, and appeal more effectively to younger and more digitally savvy customers.

03 | Current Data & Outlook: Cautious Optimism

Luckin's public financial reports indicate that in Q2 2025, net revenue reached RMB 12.3 billion, a year-on-year increase of 47.1%. GAAP operating profit was RMB 1.7 billion, up 61.8% YoY. The operating profit margin increased from 12.5% in Q2 2024 to 13.8%, signaling a transition from a "growth-at-all-costs" phase towards a "sustainable profitability" model.

However, in the US market, public data remains limited to early stages: store openings, initial promotions, preliminary customer reviews. Key future metrics include:

Store-level profit margins (after rent, labor, logistics, etc.)
Repeat purchase rate & customer loyalty
Customer Acquisition Cost (CAC) to Customer Lifetime Value (LTV) ratio
Whether brand awareness & reputation evolves from "novelty/discounts" to "reliable/quality experience"
Smooth navigation of local compliance (regulations on cash payments, labor, hygiene, safety standards across the US)

04 | Reputation Rehabilitation: Governance, Transparency & Execution

Following the 2019 incident, Luckin had to complete a series of governance and legal settlements (regulatory penalties, leadership changes, internal control improvements, etc.), which were necessary prerequisites for re-entering international markets. For US consumers, brand trust will be built through consistency (product quality & service standards), clear communication, and local operational reliability. For investors and partners, it requires demonstrating transparency in governance structure, financial credibility, and the executability of long-term strategy.

05 | Conclusion

Luckin's strategy in the US market is becoming clear: leverage digital capabilities and efficiency as the foundation, use price and convenience as the hook, and start with small-scale pilots. Compared to entrenched competitors like Starbucks and Dunkin', Luckin starts from a much lower base in terms of scale, brand recognition, and loyalty. However, it possesses distinct advantages in innovation, rapid iteration, and cost control.

The next 1-2 years will be critical: If it can consistently optimize per-store profitability, increase customer stickiness, and transform "promotion-driven traffic" into "value-based brand perception," Luckin has the potential to become a competitive "digital-native retail disruptor" in the US market.

Key Strategies for Beauty Brands Going Global

One-Sentence Conclusion

To achieve rapid growth in the U.S. market, a few smart beauty brands have generally gotten these steps right: Precisely select channels → Get the visuals and positioning right → Master social media and content → Front-load logistics and compliance → Penetrate the market with price/value → Accelerate with capital and partnerships. The following authentic case studies summarize these steps for your reference.

Technique 1: Select the Right "First Door" (Entry channel must match the customer base)

Flower Knows → Urban Outfitters
- Instead of starting at major beauty counters, Flower Knows chose the Gen Z-heavy Urban Outfitters for a "six-month retail exclusivity" test: placing 15 best-selling items online, and first displaying them with in-store events in 10 physical stores, with plans for further scaling. This step ensured the brand's aesthetic was highly aligned with the retailer's customer base, leading to more stable volume growth.
K-beauty's Offline Scaling Path
- Korean brands have aggressively negotiated listings with Ulta / Sephora / Target / Costco over the past two years. Korea's exports to the U.S. surpassed France in 2024, thanks to a channel strategy that advanced both e-commerce and offline retail.
How to copy this: Don't try to "flower across all channels" right away. First, select a retail partner that best matches your aesthetic/price point to validate the minimal closed loop, and then expand based on data.

Technique 2: Create Differentiation with "Recognizable" Aesthetics and Packaging

Florasis → Highly Recognizable Packaging + Sustainability Narrative
- When targeting the European and American markets, Florasis emphasizes information points like "Oriental craftsmanship aesthetics + recyclable materials/marine-recycled plastic" to strengthen differentiation. It connects with the high-end customer base using packaging language that says, "We have both aesthetics and responsibility."
How to copy this: Don't just talk about the formula. First, make sure the packaging and visuals are instantly recognizable, and give it a value anchor that American consumers can understand (environmental protection, sustainability, ingredient cleanliness, cultural story, etc.).

Technique 3: Let Content and Social Media Drive "Organic Traffic"

COSRX → "Dual Explosions" on Amazon & Social Media
- Rising to fame with "Snail Mucin," it has consistently topped the charts on Amazon while relying on TikTok/content seeding to drive continuous conversion (with an impressive volume of reviews and order efficiency).
Industry Trend
- K-beauty overall sustains new customer acquisition with "good ingredients + good pricing + social media topics," and Gen Z is highly receptive to this content approach.
How to copy this: First, turn 1–2 "clear-to-explain" hero products (efficacy + ingredients + before-and-after comparisons) into a short video matrix, paired with conversion pages on Amazon/DTC websites, forming a "see it, buy it" closed loop.

Technique 4: Front-Load Logistics and Compliance to "Day 0"

Olive Young (Korean Multi-brand Beauty Retailer) → Strategic Partnership with FedEx
- To support cross-border shipping timeliness and cost to the U.S., Olive Young signed a cross-border e-commerce logistics partnership with FedEx, optimizing fulfillment efficiency from Korea to the U.S. This is a classic example of a "channel-type brand" straightening out its logistics foundation before entering the U.S.
How to copy this: Pre-position overseas warehouses/customs/compliance labeling (e.g., ingredient declaration, animal testing compliance); sign an SLA (Service Level Agreement) with top logistics/fulfillment providers; plan a phased approach: "light SKUs first + easy-to-clear categories for testing."

Technique 5: Provide a Clear Answer on the "Price Band $\times$ Value Perception"

Consumers in 2025 are generally more "frugal," demanding either extreme cost-effectiveness or high perceived value. Brands like Beauty of Joseon / The Ordinary / e.l.f., which offer "clear efficacy, friendly prices," are growing rapidly. High-end brands must also justify their premium through story and experience.
Laneige consistently sells well at Sephora with its "Lip Sleeping Mask IP," continuously iterating and using celebrity endorsements to strengthen the single product's brand perception.
How to copy this: Be clear whether you are the $15–25 Efficacy Band or the $35–45 Affordable Luxury Band. List your benchmarks and differentiating factors for each price band—do not be vague.

Technique 6: Use Capital and Partnerships as "Accelerators"

Proya → Investment in Flower Knows
- Accelerating internationalization and product innovation through investment/M&A, while sharing overseas channels and resources.
How to copy this: For resource-thin brands, consider joint development/licensing/minor equity partnerships to share overseas teams, channels, and supply chains. Start with a co-created single product/small series to prove the model before deepening the partnership.

Going Global "Launch Checklist" (Save for reference)

Channel Priority: First define your "first store/first counter/first platform," list the match score and costs, and set a pilot period of over 6 months.
Single Product Strategy: Identify 1–2 "super core products" (efficacy x times x ingredients x price) and focus content and advertising around them.
Content Matrix: Create 10 short video script templates (efficacy before/after, unboxing, influencer reviews, in-store pop-ups), synchronized with conversion pages on Amazon/DTC websites.
Compliance & Logistics: Checklist for labeling/filing/ingredient compliance + Logistics SLA + SOP for returns and customer service.
Price Band: Clearly document the benchmark brands and your differentiation points (efficacy, volume, kits, gifts).
Partnerships & Funding: List potential retail/distribution/capital partners. First discuss joint activities and small-scale displays, then pursue wider distribution.

Summary