First Shanghai Securities·2025-10-23 11:17Investment Rating - The report indicates a stable competitive landscape in the instant retail industry, with Meituan maintaining its leading position [2]. Core Insights - The instant retail industry is experiencing a slowdown in growth, but competition is stabilizing, with expectations that quarterly losses may peak in Q3 [2]. - Meituan continues to lead the market with a share of 68% as of the second week of October, while Alibaba (Ele.me) holds 22% and JD.com remains stable at 10% [3]. - User growth is highlighted, with JD.com showing a remarkable weekly DAU growth of 35%, which is crucial for order volume increase [2][3]. Summary by Sections Instant Retail Industry - The competition in the instant retail sector is stabilizing, with Meituan leveraging its first-mover advantage [2]. - The cost of acquiring riders is normalizing, with a notable decrease in the overlap of 3P riders as of September [2]. - Meituan's delivery efficiency is particularly strong in lower-tier cities, while JD.com has achieved efficient fulfillment in certain areas, although its overall coverage needs improvement [2][3]. User Engagement - JD.com has the highest weekly DAU growth at 35%, while Alibaba's Taobao relies on its membership system for steady growth [2][3]. - Meituan has a large user base but needs to enhance user activity levels [2]. Competitive Strategies - Meituan focuses on quality competition and upgrading its 1P flash warehouses to strengthen branding [3]. - Alibaba is integrating resources to enhance collaboration between Tmall and offline merchants, while JD.com is deepening its supply chain advantages [3]. Market Performance - As of October 20, JD.com reported over 52,000 brands with transaction amounts increasing by over 300% year-on-year, with significant growth in consumer electronics and AI-related products [7]. - The global sales segment of JD.com is also experiencing rapid growth, with over 100% increase in transaction volume for various categories [7]. Cloud Services Expansion - Alibaba Cloud has launched its second data center in Dubai to meet the growing demand for cloud and AI services in the Middle East, expanding its global footprint to 29 regions and 92 availability zones [4][5]. Gaming Sector - Tencent's new game "Gray Realm Walker" has generated significant attention, showcasing its exploration in the global FPS market [6]. International Expansion - ByteDance's overseas app "Cici" has topped download charts in several countries, reflecting a strategic approach to leverage AI technology while minimizing geopolitical risks [8].