JD(US:JD) Zhong Guo Jing Ying Bao·2025-08-08 20:06Core Viewpoint - The article discusses the ongoing competition among major food delivery platforms in China, particularly focusing on the recent promotional activities and regulatory responses aimed at curbing excessive subsidies and ensuring a healthier market environment [3][5][10]. Group 1: Promotional Activities - Major food delivery platforms, including Meituan, Taobao Shanguo (including Ele.me), and JD.com, have committed to "regulating promotions" following regulatory discussions [3][5]. - The "First Cup of Milk Tea in Autumn" promotion, which has become a staple marketing event since 2020, is set to take place on August 7, with Taobao Shanguo launching the event on July 31, featuring celebrity endorsements [4][6]. - Meituan followed suit by launching its own promotion on August 1, offering 1 million free milk teas, with various celebrities involved [4][6]. Group 2: Market Dynamics - The competitive landscape has shifted with JD.com entering the market in February, disrupting the previous duopoly of Meituan and Ele.me [11]. - The article highlights a significant increase in order volumes and sales for certain merchants, with one merchant reporting a nearly 50% increase in sales on August 2 compared to the previous day, largely driven by Taobao Shanguo's promotions [8][12]. - The promotional strategies have led to a notable increase in customer engagement, with some merchants experiencing a doubling of order volumes compared to earlier months [11][12]. Group 3: Merchant Perspectives - Merchants express mixed feelings about the promotional activities, noting that while the current promotions are less aggressive than previous "0 Yuan Purchase" campaigns, they still attract customers [6][9]. - Merchants are participating in large discount activities, often sharing the burden of subsidies with the platforms, which can impact their profitability [9][10]. - The article indicates that while some merchants may not profit significantly from low-cost items, higher-priced items can still yield profits despite the discounts [10][11]. Group 4: Regulatory Environment - The regulatory framework aims to address issues such as "false advertising" and "exclusive competition," while allowing platforms to innovate within compliance [10][13]. - Analysts suggest that the focus of the subsidy wars has shifted from merely acquiring users to increasing transaction frequency and extracting value from existing customers [13][14]. - The long-term challenge for platforms lies in balancing user demands for low prices with the need for sustainable profitability for merchants and fair treatment of delivery personnel [14].