Huaxi: E-commerce Incremental Engine, Instant Retail Industry Embracing the New Blue Ocean of the Bottom Market

Huaxi released a research report stating that the instant retail industry is currently in a high-speed growth period. Platform-based companies such as Meituan Flash Purchase, Dingdong (Cayman) Ltd. Sponsored ADR Class A, and Pinduoduo Supermarket are gradually becoming profitable, and the industry is about to enter a dual phase of "scale expansion + profit realization". Companies benefiting from this trend include leading Meituan, which is expected to exceed 300 billion RMB in instant retail GMV by 2025, leveraging a user base of 670 million users, a network of 7.45 million delivery riders, and a lightning warehouse model. Additionally, JD.com, Inc. Sponsored ADR Class A, with its scene synergies and Dada fulfillment network, is focusing on "hour delivery + takeaway" in all scenarios, targeting a GMV of 100 billion RMB by 2025. Attention is also on the synergistic effects of JD.com, Inc. Sponsored ADR Class A's main site. Dingdong (Cayman) Ltd. Sponsored ADR Class A (DDL.US) is steadily expanding and achieving profitability. With a benchmark in precise operational front-end warehousing, it has been profitable for nine consecutive quarters, with space for growth in prepared meals and discount formats. Key points highlighted by Huaxi include: - E-commerce entering an era of stock competition, instant retail reshaping the e-commerce landscape - Instant retail is growing at a rate of over 20% while e-commerce growth is slowing down. Instant retail has maintained a growth rate of over 50% from 2020 to 2022, with a year-on-year growth of 29% in 2023, becoming the incremental engine of e-commerce. - The commercial model of instant retail is better than traditional retail, building barriers through efficiency. - The future of competition in the instant retail sector will focus on "category expansion + penetration in lower-tier markets". - Technology-driven efficiency revolution, focusing on leading companies for certainty. The research report also explores the potential for the instant retail industry, the competition landscape, and the importance of technology in driving efficiency in the sector.Transformation. The technology empowerment of instant retail has shifted from single links (such as logistics) to full chain intelligentization, and future competition will focus on the synergy of technology and the depth of scene penetration. Improve profitability from multiple dimensions such as fulfillment costs, inventory management, and operational costs. As of the end of December 2024, Meituan has opened 53 routes in cities such as Shenzhen, Beijing, Shanghai, Guangzhou, and Nanjing, completing orders exceeding 450,000. The services cover various scenes such as offices, communities, scenic spots, municipal parks, campuses, libraries, and ports, and can deliver over 90,000 types of products to users in as fast as 6 minutes and 37 seconds."Bonjour, comment vas-tu aujourd'hui?" "Hello, how are you today?"