BABA(US:BABA) Jing Ji Ri Bao·2025-07-08 21:57Core Viewpoint - The competition for the instant retail market is intensifying, with platforms like Meituan and Taobao engaging in aggressive subsidy strategies to drive consumer spending and reshape profit distribution, ultimately aiming to stimulate social vitality [1][2]. Group 1: Market Competition - The recent promotional activities, particularly Meituan's massive distribution of free drink and food coupons, resulted in over 120 million orders on July 5, 2025, indicating a significant spike in consumer engagement [1]. - Taobao's announcement of a 50 billion yuan subsidy plan aims to boost the instant retail market while ensuring merchants' profit margins are protected [1][2]. - The competition is fostering a vibrant market atmosphere, with consumers benefiting from substantial discounts, leading to increased order volumes for both merchants and delivery personnel [1][2]. Group 2: Industry Dynamics - The intense competition among platform companies is reshaping consumer habits and contributing to the growth of the digital economy in China, laying a solid foundation for future advancements in artificial intelligence [2]. - The rapid adoption of the "flash purchase" concept has led to Taobao's daily order volume surpassing 80 million, showcasing the remarkable growth of the instant retail market [2]. - While the competition is beneficial, there are concerns regarding the sustainability of small businesses, as excessive promotions may lead to waste and pressure on merchants [3]. Group 3: Future Considerations - The future of competition will hinge on achieving a balance where consumers receive benefits, merchants maintain profitability, and delivery personnel see increased earnings, all while avoiding false advertising and unfair competition [3]. - Platforms are encouraged to optimize promotional mechanisms to guide rational consumption and prevent food waste, ensuring a healthier ecosystem in the long run [3].