Core Insights - The service retail industry in China is projected to reach a scale of 7 trillion yuan by 2024, with significant growth potential as the current online penetration rate is only 9% [1] - The online penetration rate is expected to increase to 25% by 2030, leading to the emergence of 300 thousand-store brands [1] - Meituan aims to assist merchants in their online transition, having collaborated with 6.3 million merchants and achieved a 77% year-on-year growth in order volume since 2024 [1] Industry Growth - The service retail sector has become a crucial employment reservoir, with an average annual increase of 7.41 million jobs in the service industry over the past decade [1] - In 2024, the massage and foot therapy sector is expected to employ 7 million artisans, while hairstylists and beauty technicians will account for 4 million and 2.4 million respectively [1] Market Dynamics - In lower-tier cities, the demand for service consumption has been rapidly upgrading, with Meituan reporting over 90% annual compound growth in transaction volume since 2022 [2] - More than 10,000 high-tier city chain brands have accelerated their expansion into lower-tier cities, with the number of new stores increasing by 66% year-on-year [2] Technological Integration - AI is identified as a key driver for the online transformation of service retail, with Meituan launching its first AI digital employee for service retail merchants [2] - The AI assistant team includes roles such as customer service representatives and operational specialists, enhancing operational efficiency and support for merchants [2]