2 1 Shi Ji Jing Ji Bao Dao·2025-07-07 13:44Core Insights - The competition in the instant retail market has intensified, with Meituan and Alibaba launching aggressive subsidy campaigns to capture market share [2][5][11] - Alibaba announced a direct subsidy of 50 billion yuan to consumers and merchants over the next 12 months, while Meituan responded with significant coupon distributions [2][4] - The rapid increase in order volumes indicates a shift in consumer behavior and heightened competition among platforms [5][9] Group 1: Company Strategies - Meituan's daily order volume for instant retail surpassed 120 million, with non-food orders showing significant growth [5][9] - Alibaba's Taobao Flash Sale reported over 80 million orders within three days of launching its subsidy program, with a focus on enhancing its local service capabilities [5][6] - Both companies are leveraging their existing platforms to drive traffic and improve conversion rates, with Alibaba integrating Ele.me into its local services strategy [5][6] Group 2: Market Dynamics - The instant retail market is characterized by a high frequency of orders, with Meituan's non-food category growing at a rate of 23% year-on-year [5][6] - High delivery costs are expected to pressure profitability across the industry, as platforms compete for user acquisition through subsidies [6][11] - The market share of the top three players has decreased from 82% in 2020 to 67%, indicating increased competition and fragmentation [11] Group 3: Consumer Behavior - Consumers are benefiting from the competitive landscape, with reports of increased order volumes and promotional offers leading to a surge in demand for various products [8][9] - The influx of orders has created challenges for merchants in fulfilling demand, highlighting the need for efficient logistics and delivery systems [8][9] - The competition has empowered merchants, allowing them to negotiate better terms with platforms due to increased options [9][10]