It is widely known that the primary goal of most businesses today is simply to survive. According to 2022 data, the market size of China’s fresh food front warehouse sector reached 200 billion RMB, with an annual growth rate of 25%.
Within this vast market, Meituan Maicai has captured a 7% share and is showing steady expansion.
Despite the challenges posed by the pandemic and economic pressures, Meituan Maicai has maintained its presence in eight major cities: Beijing, Langfang, Shanghai, Suzhou, Shenzhen, Guangzhou, Foshan, and Wuhan.
These cities are not only economically prosperous but also have immense consumer potential, accounting for 40% of the nation’s fresh food consumption in 2022.
Amidst the fierce competition in today’s retail market, Meituan Maicai’s latest strategic moves have garnered widespread attention within the industry.
Notably, the appointment of Zhang Jing as Vice President of Meituan, and the subsequent expansion into the Hangzhou market, mark a significant step in the company’s new phase of strategic implementation. This move represents not just geographic expansion, but also a bold demonstration of its business model and competitive strength.
Meituan Maicai’s strategy emphasizes deep cultivation and meticulous execution. Instead of pursuing blind expansion, they focus on ensuring service quality and market share stability in each region.
This approach is particularly wise during a capital winter when many internet companies have faced setbacks due to aggressive expansion. Meituan Maicai, on the other hand, has maintained healthy growth through its steady progress.
Meanwhile, although competitors like Dingdong Maicai and Pupu Supermarket are also expanding rapidly, Meituan Maicai holds an advantage in user retention and repeat purchase rates.
Data shows that Dingdong Maicai and Pupu Supermarket have market shares of 5% and 3%, respectively. However, in terms of user satisfaction and brand loyalty, Meituan Maicai stands out.
The success of the Shenzhen team exemplifies Meituan Maicai’s strategy, with the team leading the Shenzhen market to achieve a 30% growth rate for three consecutive quarters—a remarkable achievement for any retail brand.
Reevaluating the Fresh Food E-commerce Industry
In recent years, the fresh food e-commerce industry has operated under a cash-burning, land-grabbing model. Once subsidies are reduced, users tend to revert to traditional channels like offline supermarkets, posing a significant challenge for fresh food e-commerce profitability.
However, with changes in lifestyle and consumption patterns, the fresh food e-commerce industry is resurging as consumers increasingly seek high-quality living.
First, market standardization has rendered price wars ineffective
Since the end of 2020, the State Administration for Market Regulation, in conjunction with the Ministry of Commerce, has issued regulations on community group buying, strictly regulating behaviors such as low-price dumping, price collusion, price gouging, and price fraud. The days of “1-cent vegetables” and “below-cost pricing” have gradually disappeared.
Second, consumers are increasingly pursuing high-quality living
As lifestyles and consumption patterns evolve, consumers are prioritizing convenience, health, and environmental sustainability, leading to the rapid rise of fresh food e-commerce.
For consumers pursuing a high-quality lifestyle, there is a growing emphasis on the quality and safety of food ingredients, with increasing demands for daily dietary needs.
Fresh food e-commerce platforms must organically combine online and offline experiences, focusing on consumer experience and product quality to stand out in the competition.
Now, industry giants are taking action. As large platforms, they possess stronger credibility and attract more premium supply sources. Moving forward, with more investment in fulfillment capabilities, high-quality products and services will elevate fresh food e-commerce to the next level.
From an industry perspective, only by moving towards a stage of healthy competition can fresh food e-commerce continue to grow. By refining business strategies and focusing on product quality and user experience, the story of fresh food e-commerce will continue to unfold.
Post time: Aug-20-2024