Group 1 - Taobao Flash Sale reported a 110% month-on-month increase in new brand entries in July, with over 12,000 new non-food brand stores launched, indicating a trend towards category diversification in the platform [1] - The increase in brand diversity is expected to enhance the platform's average transaction value but poses challenges in terms of product selection, after-sales service, and differentiated subsidies [1] Group 2 - Meituan's "Raccoon Kitchen" has seen a 40-fold increase in search volume and a 164% rise in overall merchant exposure since its launch, with a 60% increase in order volume, emphasizing its commitment to not self-operate and avoid competition with merchants [2] - The promise of not self-operating aims to alleviate merchants' concerns about the platform acting as both referee and player, though the effectiveness will depend on the transparency of traffic distribution rules [2] Group 3 - The leading live commerce agency "Jiao Ge Peng You" announced its full team will join Kuaishou, marking a new phase in live commerce, with plans to enhance digital marketing capabilities through collaboration with Kuaishou's AI [3] - The cross-platform expansion of top MCNs is becoming a norm, indicating a shift towards digitalization and intelligence in the live commerce industry [3] Group 4 - Douyin is integrating its instant retail business by merging Douyin Supermarket into Douyin Xiaoshida, aiming to improve operational efficiency in instant retail [4] - Instant retail has evolved from a "traffic trial" to a "strategic competition" among major players, with Douyin needing to address its logistics shortcomings to close the fulfillment gap [4]

Core Viewpoint - Douyin Supermarket is being merged into Douyin Xiaoshida to enhance the efficiency of instant retail business, reflecting a strategic shift in Douyin's approach to e-commerce and instant delivery services [4][9]. Summary by Sections Douyin Supermarket Launch and Initial Strategy - Douyin Supermarket was launched in the first week after the 2023 Spring Festival, aiming to provide a self-operated online grocery service similar to JD Supermarket [4]. - The initiative was intended to meet user demands for e-commerce purchasing experiences, particularly in service and logistics efficiency [4]. - The supermarket underwent a year of preparation, with pilot programs in cities like Guangzhou, Shenzhen, and Hangzhou, aligning with Douyin's strategic goal of enhancing shelf-based e-commerce [4]. Operational Model and Challenges - Unlike JD Supermarket's fully self-operated model, Douyin Supermarket adopted a mixed operation model combining consignment and self-operated sales, similar to Tmall Supermarket [4][5]. - The fulfillment capability of Douyin Supermarket has been criticized for being slower than competitors, with many products taking several days for delivery, while only a few can achieve next-day delivery [5]. Instant Retail Competition - Instant retail has become a competitive focus among major players, with Douyin Xiaoshida's prominence increasing as it is featured alongside Douyin Supermarket [6]. - Instant delivery services, such as Xiaoshida, promise delivery within one hour, covering a range of products including fresh food and daily necessities [7]. Strategic Shift Towards Instant Retail - Douyin has shifted its focus back to instant retail, especially as Douyin Supermarket's operational challenges became apparent [8][9]. - The integration of Douyin Supermarket and Xiaoshida is seen as a logical step, as both services aim to fulfill similar consumer needs, but with Xiaoshida positioned to better meet the demand for immediate delivery [9]. Market Context and Consumer Expectations - The competitive landscape has evolved, with consumers now accustomed to instant retail services from platforms like Meituan and Taobao, which can deliver within 30 minutes [9]. - Douyin's decision to prioritize instant retail aligns with market trends and consumer expectations, suggesting a strategic pivot to enhance user engagement and revenue generation [9].

Core Viewpoint - Douyin Supermarket is being merged into Douyin Xiaoshida to enhance the efficiency of instant retail business [3][10]. Summary by Sections Douyin Supermarket Launch and Initial Strategy - Douyin Supermarket was launched in the first week after the 2023 Spring Festival, aiming to provide an online self-operated business similar to JD Supermarket [4]. - The initiative was intended to meet user demands for e-commerce purchasing experiences, particularly in service and logistics efficiency [4]. - The supermarket underwent a year of preparation and piloting in cities like Guangzhou, Shenzhen, and Hangzhou before its official launch [4]. Operational Model and Challenges - Douyin Supermarket adopted a mixed operational model combining consignment and self-operated sales, unlike JD Supermarket's fully self-operated approach [4]. - The fulfillment capability of Douyin Supermarket has been criticized, with many products taking several days for delivery, while only a few can achieve next-day delivery [4]. Instant Retail Competition - Instant retail has become a competitive focus among major companies, with Douyin Xiaoshida gaining prominence alongside Douyin Supermarket [6]. - Xiaoshida offers a one-hour delivery service for various products, including fresh produce and daily necessities, and has been integrated into the Douyin Supermarket interface [5][7]. Market Positioning and Future Directions - The integration of Douyin Supermarket and Xiaoshida reflects a strategic shift towards prioritizing instant retail, as the advantages of online supermarkets diminish [10]. - The industry has seen a growing acceptance of instant retail services, making it a more favorable option for Douyin at this time [10]. - Douyin's previous attempts in the food delivery sector faced challenges, leading to a renewed focus on Xiaoshida as the primary instant retail service [8][9].

Core Insights - Douyin Xiaoshida is an instant retail service by Douyin, focusing on "delivery within approximately 1 hour after ordering" to meet users' immediate shopping needs [1] - The service was piloted in Shenzhen in August 2022 and expanded to major cities like Beijing, Shanghai, Guangzhou, and Shenzhen in 2023, with plans to open full access to all e-commerce influencers by March 2025 [1] - The service covers a radius of 5-10 kilometers from the user, offering categories such as fresh produce, food, daily necessities, 3C accessories, flowers, beauty products, and over-the-counter drugs [1] Service Model - Merchant Model: Merchants must provide business licenses and relevant operating qualifications, set up their stores, list products, and manage orders and delivery [2] - Influencer Sales: Influencers with complete e-commerce permissions can automatically activate their accounts and promote products through short videos, images, and live streams [2] - Delivery relies on third-party teams, with a system that matches nearby delivery personnel, typically achieving delivery within 1 hour, although delays may occur during peak times or adverse weather [2] Onboarding Process - Preparation: Required documents include business licenses, legal representative ID, store logo, and product photos [5] - Store Creation: Merchants create a store on the platform and fill in necessary information [5] - Submission and Review: Submitted information is reviewed, typically taking 3-5 business days for results [5] - Information Completion: After approval, merchants can further refine store details [5] - Product Upload: Merchants upload product information, including names, prices, descriptions, and inventory [5] - Shipping Fee Setting: Merchants set shipping fees based on actual conditions [5] - Product Launch: After completing the previous steps, products are published on the platform [5] - Marketing Operations: Merchants can then engage in marketing to attract more users [5]

Core Viewpoint - ByteDance's entry into the takeaway market with its AI product "Tan Fan" is under scrutiny, as Douyin (TikTok's Chinese counterpart) focuses on in-store services and has no plans to build its own takeaway service [1]. Group 1: Douyin's Takeaway Business Adjustments - Douyin's takeaway business has undergone multiple adjustments, ultimately choosing "Sui Xin Tuan" as its breakthrough point [3]. - As of June 30, 2023, merchant entry into the "Sui Xin Tuan" business has shifted from self-application to targeted invitations, emphasizing "quality merchants" as the core entry requirement [3]. - The "Sui Xin Tuan" business primarily targets chain brand merchants and covers various categories such as beverages, Western fast food, pastries, and Chinese cuisine [3][4]. Group 2: Business Performance and Market Challenges - In 2023, Douyin's annual GMV target for its takeaway business was drastically reduced from 100 billion to 5 billion [7]. - The takeaway business has faced challenges, including a low retention rate due to a low-entry strategy that resulted in inconsistent merchant quality [6]. - Analysts suggest that Douyin's success in the competitive takeaway market will depend on its ability to balance content flow and fulfillment efficiency, with a short-term focus on capturing the mid-to-high-end market [7]. Group 3: Competitive Landscape - The takeaway market is experiencing a redefined competitive landscape, with significant promotional activities from platforms like Meituan and Taobao [11][12]. - Recent advertising campaigns have targeted competitors directly, indicating an intensifying battle for market share in the takeaway sector [10][11].

Investment Rating - The report does not explicitly state an investment rating for the instant retail industry Core Insights - Instant retail is defined as a consumption model based on an instant delivery system, emphasizing "online ordering, delivery within 30 minutes," allowing consumers to quickly obtain needed products [7][8] - The market size of China's instant retail reached 650 billion yuan in 2023, with a year-on-year growth of 28.89%, outpacing the growth of online retail by 17.89 percentage points [17][19] - By 2030, the instant retail market in China is expected to exceed 2 trillion yuan [19] Summary by Sections 1. Instant Retail Overview - Instant retail activates "scene consumption," meeting immediate needs, contrasting with traditional retail's reliance on "demand forecasting" [7][8] - The development of instant retail can be traced back to the emergence of food delivery platforms a decade ago, evolving into a high-speed growth phase post-2015 with platforms like Meituan and JD Daojia [11][13] 2. Background of Instant Retail's Rise - Consumer demand has shifted towards faster delivery, with over 50% of post-95 consumers wanting same-day or even within-hours delivery [24][27] - The Z generation's market share surged from 30% in 2020 to 59%, driving a shift towards "emotional value consumption" [30] - Technological advancements, including the integration of the internet and big data, support the growth of instant retail [32] 3. Reshaping of Consumption Scenarios - Instant retail has expanded from food delivery to encompass a wide range of products, including fresh produce, pharmaceuticals, and electronics [43][44] - New consumption scenarios have emerged, such as "hot pot delivery" and "instant meal kits," significantly reducing food waste [45] - Instant retail platforms have partnered with pharmacies to provide 24-hour medicine delivery services across over 300 cities [47] 4. Business Models of Instant Retail - Platform-based instant retail companies leverage various methods to acquire traffic, such as Meituan's integration with its food delivery service [60] - The front warehouse model is employed to ensure rapid response to consumer orders, particularly in densely populated areas [63] - The warehouse-store integration model enhances quality consumption by combining online and offline sales [71] 5. Competitive Landscape of Instant Retail - The market is characterized by a "one strong, many strong" structure, with Meituan leading with a 35% market share and over 10 million daily orders [79] - Major platforms have built strong supply chain systems and efficient delivery networks, enhancing their competitive edge [81][82] 6. Challenges Facing Instant Retail - Cost control is a significant challenge, with high warehousing and delivery costs impacting profitability [95] - Supply chain stability is crucial, as demand fluctuations can lead to supply interruptions [97] 7. Future Trends in Instant Retail - Instant retail platforms are expected to deepen service scenarios, such as offering laundry pickup and delivery services [109] - The integration of AI and IoT technologies will enhance operational efficiency and product quality assurance [118][119] 8. Development Recommendations - Companies should invest in AI and IoT technologies to optimize delivery routes and ensure product quality [131][132] - Strengthening partnerships with local producers and wholesalers can create a more agile supply chain [133]