User Changes - In Q1 2025, the average number of monthly independent devices in China's mobile internet increased by 2.6% year-on-year, indicating a stabilization in market demand and a shift towards intensified competition in a saturated market [1][5] - User stickiness continues to decline, with the effective daily usage time per device at 268.0 minutes, down 3.9% year-on-year, and usage frequency at 63.4 times, down 5.1% year-on-year, reflecting a fierce competition for existing users' attention [1][11] Industry Changes - E-commerce sector saw peak traffic of 1.216 billion in Q1, driven by upgraded gifting features in social consumption, with platforms like Taobao and JD introducing new services [2] - The food delivery market is experiencing intense competition with JD's entry and Meituan's expansion, leading to a multi-player competitive landscape [2][26] - The social network sector is expanding, with Xiaohongshu benefiting from internationalization and a surge of users from TikTok [2][67] - The AI sector is leading growth with a 46.5% year-on-year increase in monthly active devices, driven by practical applications in various verticals [2][44] APP Changes - In March 2025, the top three apps with over 100 million monthly active users (MAU) in terms of compound growth were Personal Income Tax, WiFi Master Key, and Xianyu [3][84] - The top three apps favored by Generation Z users were Boss Zhipin, Honor of Kings, and Peace Elite, indicating a trend in user preferences [3][86] Mobile Internet Traffic Trends - Q1 2025 saw a slight increase in mobile internet traffic, with the industry entering a phase of deepened competition in a saturated market [4][5] User Engagement Metrics - The effective daily usage time and frequency of mobile internet users have both declined, indicating a fragmentation of user attention and a heated competition for existing users [11][18] - Entertainment content continues to attract user attention, with short videos accounting for 29.1% of usage time, while communication and information aggregation saw a decline [14] Smart Screen Trends - By Q1 2025, the scale of smart screen terminals reached 339 million, with daily average operating time increasing year-on-year [21] E-commerce Overview - The e-commerce sector's user scale and stickiness are steadily improving, with peak traffic in Q1 approaching last November's levels [32] - JD's app led the industry with a 3.4% year-on-year growth in traffic, while other platforms like Taobao and Pinduoduo experienced slight user scale contractions [35] AI Industry Overview - The AI industry is experiencing explosive growth, with a 46.5% year-on-year increase in monthly active devices, focusing on practical applications in various fields [44][49] Social Network Overview - The social network sector's user scale continues to expand, with Q1 traffic peaking at over 900 million [65] - Weibo and Xiaohongshu lead the industry, with Xiaohongshu experiencing significant growth due to international user influx [67] Video Service Overview - The video service sector saw stable growth in Q1, with significant contributions from aggregated video and game live streaming [71][75]

Core Viewpoint - The competition in the food delivery market has intensified with Taobao and Ele.me entering the fray, leveraging a strategy of "hundred billion subsidies + e-commerce low prices + instant delivery" to differentiate themselves from competitors like Meituan and JD [1][23]. Group 1: Market Dynamics - The launch of Taobao Flash Purchase and Ele.me's "Hundred Billion Subsidy" signifies a shift from mere traffic competition to a comprehensive battle focused on operational efficiency and user experience [2][23]. - Ele.me's strategic entry into the market is expected to disrupt the current stalemate among competitors, benefiting consumers, riders, and merchants alike [10][14]. Group 2: Subsidy Strategy - Ele.me's "Hundred Billion Subsidy" initiative is designed to provide genuine benefits rather than engage in a reckless cash-burning strategy, targeting consumers, riders, and merchants with tailored subsidies [4][7]. - The effectiveness of the subsidy program is evidenced by user feedback, with significant discounts leading to increased order volumes and user engagement [8][5]. Group 3: Preparedness and Timing - Ele.me's entry into the market is well-timed, capitalizing on competitors' fatigue and the upcoming peak consumption season during the May Day holiday [17][14]. - The company has made substantial investments in enhancing rider welfare and operational efficiency, ensuring a robust support system for its delivery personnel [14][17]. Group 4: Competitive Advantages - Ele.me's collaboration with Taobao Flash Purchase allows it to leverage Alibaba's extensive product supply and brand resources, creating a unique advantage in the instant retail space [21][23]. - The integration of AI technology to improve delivery efficiency and rider experience positions Ele.me favorably against competitors [19][20].