Haitong Securities International·2025-07-02 12:25Investment Rating - The report does not explicitly state an investment rating for the industry or specific companies involved in the instant retail sector. Core Insights - Taobao Flash Sales announced a subsidy program of RMB 50 billion over the next 12 months to support merchants and stimulate consumer spending, covering various aspects such as product discounts and delivery support [1][7] - The traffic distribution model on Taobao is shifting towards instant fulfillment, with Flash Sales becoming a core entry point, achieving a peak daily order volume of over 60 million within two months [2][8] - The significant subsidy indicates Alibaba's strong commitment to the instant retail market, aiming to protect merchant margins and lower operational barriers [2][10] Summary by Sections Event Overview - On July 2, 2025, Taobao Flash Sales announced a RMB 50 billion subsidy program to support merchants and stimulate consumer spending, which includes product discounts, commission waivers, and delivery support [1][7] Traffic and Fulfillment Model - Taobao is restructuring its traffic distribution model towards instant fulfillment, with Flash Sales positioned as a core entry point, contributing nearly 40 million daily orders out of a total of over 60 million [2][8] - The platform is transitioning from a search-based model to a scenario-driven model, dynamically recommending products based on user preferences and urgency [2][8] Ecosystem Integration - Alibaba is building a broader instant lifestyle ecosystem by integrating traffic from various services like Feizhu, Freshippo, and Alipay, allowing users to purchase local services alongside products [4][9] - The integration aims to enhance user retention and cross-category conversion by leveraging behavioral data [4][10] Operational Enhancements - The logistics strategy includes utilizing Cainiao's local delivery and Ele.me's rider network for efficient delivery [5][12] - The merchant side leverages resources from Lazada and other platforms to improve supply chain responsiveness [5][12] - Payment options through Alipay are designed to increase average transaction values and extend user retention periods [5][12]