Core Viewpoint - The article discusses the rapid expansion and competitive positioning of Xiaoxiang Supermarket, which is approaching the scale of Pupu Supermarket and surpassing Dingdong Maicai in terms of GMV, with a projected GMV of nearly 30 billion in 2024 [2][6]. Group 1: Company Expansion and Market Position - Xiaoxiang Supermarket is currently in a phase of accelerated expansion, with over 700 warehouses opened domestically and simultaneous overseas expansion [2][4]. - The company has opened 18 cities, including three in Beijing and surrounding areas, eight in Shanghai and Jiangsu-Zhejiang regions, and five in the Guangzhou-Shenzhen area [5]. - Xiaoxiang Supermarket's GMV is projected to reach nearly 30 billion in 2024, surpassing Dingdong Maicai's 25.5 billion GMV, while Pupu Supermarket is expected to exceed 30 billion [6][11]. Group 2: Competitive Landscape - Unlike Pupu Supermarket and Dingdong Maicai, Xiaoxiang Supermarket maintains a strategy of nationwide simultaneous expansion, initially focusing on first-tier cities before moving to popular surrounding cities [7]. - Dingdong Maicai has recently closed several underperforming cities and is focusing on strengthening its presence in the East China region [11]. - In Beijing and Shenzhen, Xiaoxiang Supermarket has a significant market share, with users reporting frequent usage [12][13]. Group 3: Financial Performance and Profitability - Xiaoxiang Supermarket is currently operating at a loss overall, with profitability mainly in first-tier cities, while expansion into second and third-tier cities incurs losses [15]. - Dingdong Maicai has achieved its first GAAP profit in 2024, but its stock price has not reflected this success [15]. - The industry is characterized by low profit margins, with net profit margins often below 1% [14][15]. Group 4: Supply Chain and Operational Efficiency - The article highlights the importance of supply chain management, with Pupu Supermarket achieving low delivery costs through efficient operations [18]. - Xiaoxiang Supermarket has a diverse warehouse model, with capacities ranging from small to large, and is focusing on operational efficiency and investment returns [19][20]. - The company is also exploring the expansion of its SKU offerings to enhance competitiveness [20]. Group 5: International Expansion - Xiaoxiang Supermarket has begun its international expansion, launching in Riyadh, Saudi Arabia, and plans to continue expanding into other regions, including Brazil [21][22]. - The company is leveraging its overseas delivery platform, Keeta, to facilitate its entry into the Saudi market [22][25]. - The strategic choice of Saudi Arabia is based on consumer behavior regarding delivery costs, which are expected to remain high in the short term [25]. Group 6: Future Outlook - Xiaoxiang Supermarket is positioned as a key component of Meituan's retail strategy, with plans to enhance its market presence in the fast-growing instant retail sector [27][28]. - The company aims to capture a significant share of the e-commerce market, which is projected to reach several trillion in scale [27].

Core Insights - The article discusses the contrasting fates of two Chinese fresh food e-commerce companies, Missfresh and Dingdong Maicai, highlighting why Dingdong has survived while Missfresh has not [2][3][4]. Group 1: Company Performance - Missfresh raised over 11 billion yuan in funding but faced high operational costs, leading to cumulative losses exceeding 10 billion yuan from 2018 to 2021, ultimately resulting in its closure in July 2022 [2]. - Dingdong Maicai, founded in 2017, experienced initial losses but expanded its front warehouse model from approximately 600 to 1,400 locations by Q3 2021, with revenues growing from 3.88 billion yuan in 2019 to 20.12 billion yuan in 2021 [3]. - In 2022, despite a decline in GMV and revenue, Dingdong managed to significantly reduce its losses to 807 million yuan and achieved its first quarterly profitability under both GAAP and Non-GAAP standards in Q4 2022 [3][4]. Group 2: Operational Strategies - Dingdong's success is attributed to strategic pivots, focusing on core regions and optimizing its front warehouse model, reducing the number of warehouses to below 80% of the original count [3][4]. - The company implemented a comprehensive digitalization strategy, enhancing supply chain efficiency and reducing waste rates to 1.5%, significantly lower than the industry average of 25-30% for traditional models [11][12]. - Dingdong's digital systems allow for precise inventory management and demand forecasting, achieving a 95% accuracy rate in predicting overall orders and popular items [19][20]. Group 3: Market Position and Competition - The fresh food e-commerce sector is becoming increasingly competitive, with major players like JD, Hema, and Meituan entering the market, intensifying the competition for Dingdong [29]. - Dingdong has shifted its strategy from rapid expansion to focusing on efficiency, reducing its operational footprint from 37 cities in 2021 to 25 cities, with a concentration in the Jiangsu-Zhejiang-Shanghai region [25][31]. - The average order value for Dingdong increased from 58.6 yuan in 2021 to 72.9 yuan in the first half of 2024, with a gross margin rising from 17.14% in 2019 to 30.11% in 2024, indicating improved profitability [27][28]. Group 4: Future Outlook - Dingdong plans to continue optimizing its front warehouse network and enhance operational efficiency, focusing on maintaining profitability in its core markets while navigating the challenges posed by larger competitors [31][32]. - The company is also refining its product offerings, with a growing share of self-branded products, which currently account for 35% of sales, enhancing its profit margins [30].