Xin Lang Cai Jing·2025-09-12 06:09Core Viewpoint - The launch of Meituan's discount supermarket "Happy Monkey" in Hangzhou marks a significant move by major internet companies into the hard discount retail sector, which is expected to reshape the future of instant retail and enhance supply chain efficiency [1][2][4]. Group 1: Hard Discount Market Dynamics - The hard discount model focuses on extreme cost reduction and efficiency in operations and supply chains, typically achieving gross margins of 10%-15% [2]. - Major players like Meituan, Alibaba's Hema NB, and JD.com are entering the hard discount space, indicating a competitive landscape that extends from online to offline retail [1][4]. - The competition among these companies is characterized by strategic positioning in different geographic areas, with Meituan targeting first-tier cities, Hema NB focusing on the Yangtze River Delta, and JD.com expanding in northern cities [4]. Group 2: Retail Efficiency Revolution - The hard discount model is expected to drive a new wave of retail efficiency by reducing unnecessary distribution costs and directly engaging with manufacturers [5][6]. - The shift towards hard discounting is supported by changing consumer preferences, with a projected compound annual growth rate of 5.6% for hard discount formats over the next decade, outpacing traditional supermarkets [7][8]. - Consumers are increasingly seeking value-driven purchasing options, leading to a decline in luxury goods sales and a rise in outlet sales [6][7]. Group 3: Self-Operated Products and Quality Assurance - Major retailers are focusing on self-operated products to enhance price competitiveness while maintaining quality, with Hema NB's self-operated products accounting for approximately 60% of its offerings [10][12]. - The development of self-operated products allows retailers to collaborate closely with top suppliers, ensuring that pricing reflects true production costs and quality standards [11][12]. - Companies like JD.com are also introducing their own brands to compete effectively in the hard discount market, emphasizing quality and supply chain optimization as core strengths [12].