Conceptualizing the VCTD Framework: Groundbreaking Insights and Practical Insights from Luckin Coffee’s Digital Transformation

International business school, Xi’an Jiaotong-Liverpool University, Suzhou, Jiangsu Province, 215123, China

^* Corresponding author: Minjia.Gu21@student.xjtlu.edu.cn

Abstract

This paper delves into the digital transformation journey of Luckin Coffee, examining its brand positioning strategy within a highly competitive market. It begins by outlining the research background and conducting a comprehensive literature review to identify gaps in current studies related to digital transformation and market competition. The focus then moves to Luckin Coffee’s strategic use of digital tools and platforms to strengthen its brand and secure a competitive advantage. The paper assesses Luckin Coffee’s digital transformation trends and current efforts, critically analyzing its methods and achievements. From these insights, it refines the VCTD model — a conceptual structure designed for digital transformation—and proposes a four-stage roadmap to aid Luckin Coffee’ s ongoing digital journey. This roadmap outlines practical steps for continuous growth, covering everything from early adoption to achieving full digital integration. Moreover, the study evaluates the VCTD model’s effectiveness, spotting potential challenges and limitations in its deployment. In conclusion part, the paper summarizes key findings and suggests areas for further research, providing businesses like Luckin Coffee with a solid conceptual foundation and actionable advice for successfully managing digital transformation, thereby securing a lasting competitive edge and adaptability in a dynamic digital environment.