Core Viewpoint - Alibaba is positioning itself in the competitive landscape of instant retail, emphasizing the historical opportunity presented by near-field e-commerce rather than merely focusing on the intense competition in the food delivery sector [2][4]. Group 1: Market Strategy - Alibaba's strategy encompasses a comprehensive layout of "B2C e-commerce + instant retail + food delivery + offline," which is seen as more diversified compared to competitors [2][4]. - The company is not prioritizing the development of offline retail formats, focusing instead on enhancing its existing business models [3][4]. Group 2: Performance Metrics - In August, Taobao Flash Purchase reached a peak daily order volume of 120 million, with a weekly average of 80 million, leading to a 200% increase in monthly active buyers compared to April [5][6]. - The platform's daily active riders exceeded 2 million, marking a threefold increase since April, indicating significant growth in operational capacity [5][6]. Group 3: Economic Impact - The integration of Taobao Flash Purchase with the broader e-commerce business has resulted in a 20% increase in daily active users for the Taobao app, enhancing overall user engagement and advertising revenue [5][6]. - The company anticipates that the Flash Purchase and instant retail segments will generate an additional 1 trillion yuan in transactions over the next three years, driven by the onboarding of one million brand stores [4][12]. Group 4: Operational Efficiency - Alibaba is focusing on improving operational efficiency through user structure optimization, order structure enhancement, and cost reduction in logistics, with expectations of halving losses in unit economics [6][8]. - The company is transitioning Tmall Supermarket from a traditional B2C model to a near-field Flash Purchase model, aiming for faster delivery while maintaining competitive pricing [10][11]. Group 5: Industry Dynamics - The shift from a single dominant player in the food delivery market to multiple platforms is seen as beneficial for both merchants and consumers, fostering competition and innovation [7][12]. - The emergence of instant retail is viewed as an opportunity for B2C e-commerce platforms to adapt and transform in response to changing consumer demands and market dynamics [11][12].

Investment Rating - The investment rating for the industry is "Outperform" [1] Core Insights - Instant retail is defined as a retail format that meets local immediate demand through online ordering and offline fulfillment, with a market size projected to reach 780 billion yuan in 2024, reflecting a compound annual growth rate (CAGR) of 46% over the past five years [2][17] - The market is expected to exceed 3 trillion yuan by 2030, with a penetration rate in online retail increasing from 6% to 15.7% [35][38] - The competition in instant retail is primarily between platforms and self-operated models, with platforms holding a market share of 60%-70%, and Meituan leading the market [2][47] Summary by Sections 01 Instant Retail: Local Supply and Immediate Fulfillment - Instant retail is characterized by its ability to fulfill local demand quickly, leveraging local retail supply [6][8] - The development of instant retail has accelerated due to the rise of smartphones and location-based services, leading to various business models [8] 02 Competitive Landscape: Fulfillment as the Core Barrier - The competitive landscape is defined by short-term competition for user traffic and long-term competition for supply capabilities [2][3] - Fulfillment capability is identified as a long-term competitive barrier, with current competition focused on subsidies and user acquisition [2] 03 Analysis of Instant Retail Platforms - The analysis covers organizational efficiency, user growth driven by subsidies, supply capabilities, and fulfillment efficiency [2][3] - Meituan has a significant advantage in fulfillment due to its established delivery network and operational scale [2] 04 Profit Impact Assessment for Meituan, Alibaba, and JD - Projections indicate that Meituan's flash purchase gross transaction value (GTV) could reach approximately 1.1 trillion yuan by 2030, contributing 18.6 billion yuan in profit [3] - Alibaba's cross-selling in food delivery and instant retail is expected to generate close to 1 trillion yuan in GMV, but with limited profit contribution [3] 05 Investment Recommendations - The essence of retail competition is efficiency, with a focus on operational capabilities and supply chain management [3] - Meituan is expected to maintain its leading position in the instant retail market due to its organizational capabilities and user engagement strategies [3]