Original source: Zouma Finance
At the end of May, with JD.com, Alibaba, Tencent, Kuaishou, Pinduoduo, Meituan , etc. releasing financial reports one after another, the financial report release season of China's major Internet companies came to an end.
On the one hand, they are large enough, on the other hand, they are either deeply involved in retail, or are closely related to retail and consumption, and are still the most dynamic part of the Chinese economy in general.
Through the financial reports of these companies, we can feel the pulse of the Chinese economy more intuitively.
Meituan, which released its financial report on May 25, should be more popular with us because it is rooted in local consumption, connecting tens of millions of small shops along the street, millions of cute riders, and hundreds of millions of consumers. s concern.
People depend on food, and Meituan serves the most instinctive consumption needs of human beings. The merchants it connects to are the most fine-grained commercial organizations in society, and the rider position is an excellent container to ease the current rather difficult employment pressure.
Perhaps to some extent, Meituan's financial report can reflect the final resilience of China's economy and domestic demand.
This article will mainly focus on the following parts:
Quick review of Meituan's overall performance;
Core local commercial business progress and development trends;
New business progress and future prospects;
The moat and possibility of Meituan Retail;
In what ways will investment in technology affect the future of Meituan;
How to view the value of Meituan.
1. Performance exceeded market expectations
According to the comprehensive forecast of Bloomberg analysts, Meituan’s revenue in the first quarter was 57.482 billion, and its adjusted net profit under non-international accounting standards was 1.934 billion. The financial report shows that Meituan’s revenue in the first quarter was 58.6 billion, and the adjusted net profit under non-international accounting standards was 5.491 billion, both of which exceeded market expectations, especially the net profit far exceeded expectations.
This quarter’s revenue increased by 26.7% year-on-year, compared with a year-on-year increase of 25% in the first quarter of last year. The growth rate is very rare among Chinese Internet companies.
The quarter-on-quarter decreased slightly by 2.5%. The first quarter was affected by the Spring Festival factor, and it was still an off-season. The quarter-on-quarter decline was even more surprising.
The substantial growth of Meituan's profits also benefited from the Internet industry's main theme of reducing costs and increasing efficiency; but more importantly, it relied on the operating leverage of the substantial increase in revenue. In fact, in some respects it has not cut spending, it has increased it substantially.
For example, marketing expenditures increased by 14.3% year-on-year, which is quite unusual among Chinese concept stocks. Almost all Chinese concept stocks’ marketing expenditures are shrinking year-on-year. Due to the substantial increase in revenue, the proportion of revenue in this part of the expenditure is still maintained at A lower level of 8.6%;
Research and development also maintained a historical high of 5 billion yuan in a single quarter, maintaining year-on-year growth;
Cost of sales accounted for 66.2% in the first quarter, which was the lowest ratio in the past 11 quarters, down 10.6 percentage points year-on-year and 5.6 percentage points quarter-on-quarter, thanks to changes in the product mix structure, strong cost control and improved performance efficiency;
Administrative expenses were well controlled, with a year-on-year decrease of 300 million, and the proportion of revenue decreased by 1.6 percentage points. The final operating profit was 3.586 billion, and the adjusted net profit was 5.491 billion, both turning losses into profits year-on-year.
Affected by the above factors, Meituan’s operating cash flow in the first quarter reached 8.1 billion yuan. Due to seasonal factors, the first quarter is the off-season for Meituan’s operating cash flow. Its operating cash flow in the first quarter of 2019-2022 is negative . The first quarter of the previous year should also be negative, because it was still in the investment period at that time, and we have reason to expect that the operating cash flow in 2023 will perform well.
2. Core local commercial business progress and development trend
The core local business of Meituan includes instant retail business consisting of food delivery and flash shopping, as well as local life business consisting of in-store catering, in-store integration, hotel tourism, homestay, and ticketing.
In the first quarter, the operating profit of the core local business was 9.45 billion, and the profit rate was 22%, which was at a relatively high level. As far as we know, the operating profit margin of the in-store, hotel and travel business still reaches the range of 45-50%, which is completely unaffected by Douyin’s invasion of local life.
Of course, since March, Meituan has successively increased content construction such as short videos and live broadcasts. At the same time, in April, it launched the "special group purchase" business nationwide, adding deep discount group purchases for popular products, and at the same time reduced the price for some categories in third-tier cities and below. The threshold of subscription fees has also increased the intensity of rebates to merchants, and strategically reduced the operating profit margin of the in-store hotel and travel business. The purpose is to help the recovery of China's offline real economy and help merchants expand their business channels and marketing methods , and at the same time meet the needs of price-sensitive consumers for deeply discounted items.
2.1 Takeaway and flash sale
Let's look at takeout first.
After the financial report, the management disclosed that in the first quarter, the volume of flash sales accounted for 11.1% of instant retail sales. The average daily volume of instant retail sales in the first quarter was 47.42 million. From this, it can be calculated that the average daily volume of takeaway orders was 42.16 million. A data year-on-year increase of 12.9%.
Specifically, January was negatively affected year-on-year, because this year’s Spring Festival was in January and last year was in February. This year’s Spring Festival is the first after the end of the epidemic. Few returned home early for the New Year, and the rest time was slightly longer than in previous years. This may be due to the aftermath of the epidemic in January, and many people were still celebrating the New Year on the spot during the Spring Festival last year. However, supply and demand recovered rapidly in February, and the rebound in take-out orders in March exceeded expectations. , reaching more than 20%.
The 12.9% growth rate of takeaway orders in the first quarter was not very strong. In addition to the above factors, another important reason was that low customer orders were negatively affected. On the one hand, the employment downturn has affected the demand of consumers with low order orders. On the other hand, consumption subsidies have been reduced since the epidemic.
After the financial report, the management stated that low customer orders are very important for the scale effect, and are an important factor in improving the order density and fulfillment efficiency within the physical radius. Therefore, since April, Meituan has increased subsidies for low customer orders. This part of demand has also recovered rapidly, and the second quarter will continue the high-speed growth since March, and it will even be faster.
In addition, Meituan has also improved the subsidy efficiency, made the subsidy more targeted through technology, and launched the "God Wanted" activity on the basis of the God Coupon Festival, and also through the official live broadcast of Meituan and the live broadcast of merchants and experts. , to release more coupons and drive consumers' demand for non-instant ordering.
The live broadcast of the God Coupon Festival on April 18 drove a year-on-year increase of nearly 50% in take-out orders on all platforms, and a year-on-year increase of 75% in take-out DAU. The single-cup sales of Luckin Raw Coconut Latte exceeded 1.5 million cups on the day, and the take-out sales of Michelle Ice City on the same day The amount exceeded 100 million, and more than 15 million cups of drinks were sold.
These data look amazing, but do you think you can do it with traffic exposure?
The answer is impossible.
Because takeaway has the retail characteristics of both goods and services, the service means that it is limited by the service capabilities of shop assistants and delivery staff.
We can imagine that Michelle Ice City sold more than 15 million cups of drinks that day. Assuming that there are 15,000 stores across the country, an average of one can sell 1,000 cups. Such a volume demand, if the merchant does not have the platform to organize the riders in advance How to ensure the service experience of the day.
If the user experience cannot be guaranteed, the more orders the more likely to be a disaster.
This once again shows us the moat of the food delivery business: New entrants need to be fully ahead in the four aspects of user intelligence, user scale, merchant scale, and contract performance capabilities before they can surpass the existing leaders .
That was quite difficult.
At the same time, these cases have shown us new possibilities for the food delivery business. That is, it can use new content forms such as short videos and live broadcasts for marketing to create incremental demand.
In short, the food delivery platform can use its own or external traffic to make content (short video + live broadcast) and engage in marketing; but the content platform cannot use its own traffic to do food delivery. Because compliance is the key, and it's almost insurmountable .
If we understand this, we will have more confidence in the stability and upward potential of the food delivery business.
In the first quarter, the average daily flash sales reached 5.26 million orders, an increase of about 35% year-on-year, which is a great speed. The month-on-month decline of 19.1% is completely acceptable, because last year's Q4 benefited from the outbreak of the epidemic, and consumers frantically hoarded goods and bought medicines. This situation is not normal.
In the first quarter, the number of flash purchase orders still increased by about 7.3% compared with last year's Q3, while the average daily order volume of food delivery was 42.16 million, a 15.2% decline from last year's Q3. Adolescence, still growing at a high speed.
Although the epidemic has subsided, Meituan’s mentality of flash shopping for everything at home has basically formed, and flash shopping is more flexible than takeaway, unlike takeaway, which is trapped by kitchen production capacity, which allows it to play a big role in festival marketing.
For example, during the Spring Festival, the New Year’s Day sales promotion will be launched, and during important festivals such as Valentine’s Day and May 1st, you can promote festival marketing of special categories.
Meituan is not in a hurry to make a profit through flash sales at the moment, and is still carrying out more aggressive consumption subsidies, and vigorously introducing new high-quality merchants. According to the financial report, in the first quarter, flash sales merchants increased by 30% year-on-year. We are very sure that this is the starting point of the flywheel, because more merchants will bring more competition, making commodity prices more reasonable and benefiting consumers. , while stimulating more demand. In fact, according to our observation, the flash sale business is still in the stage of shortage of supply, especially in remote areas of the city, and at night time. More supply will better meet the existing needs of consumers.
What is more noteworthy is that due to the huge scale of the food delivery business, it has created a scale effect and a performance cost advantage, making the flash sale business more aggressive and more flexible in promoting user subsidies.
All in all, the flash sale business is still and will continue to expand its market share, and we will be very surprised if the flash sale business does not end up creating another takeaway .
In the first quarter, the total daily average of instant retail orders composed of food delivery + Meituan flash purchases was 47.42 million, a year-on-year increase of 14.9%. —In fact, in Q2 last year, the in-store hotel and travel business was really affected. The in-home business was not affected much, mainly because Meituan adopted a more active user subsidy strategy and the scale of flash sales increased.
2.2 Hotel travel
According to the 2019-2021 annual report, the total monetization rate of Meituan Waimai (including delivery costs, calculated as takeout annual revenue/takeout annual GTV) is 14%, 13.6%, and 13.7%, respectively.
In 2022, we will no longer disclose the separate annual revenue and GTV of food delivery. We have no way of knowing, but a rough estimate of the monetization rate should be between 13.7% and 14%, because the monetization rate of the food delivery business has basically matured in 2019.
According to the data in the first quarter of 2022, the average daily order of takeaway is 37.35 million, and the average daily order of flash sale is 3.9 million. At that time, the unit price of takeaway customer is about 50 yuan, and the unit price of flash sale is about 80 yuan. In 2022, Q1 food delivery revenue will be 24.2 billion. It can be calculated that the monetization rate of food delivery business in this quarter is 14.4%. Takeaway, because merchants will have more proportion of self-delivery or choose third-party delivery).
We assume that the takeaway monetization rate in Q1 of 2023 is the same as last year’s Q1, and the unit price of customers is about 52 yuan, because Meituan has promoted group meal orders and the unit price of takeaway itself is growing slowly, then it can be roughly estimated that the revenue of takeaway in the first quarter of this year will be about 284 yuan. billion.
The unit price of Meituan’s flash shopping orders is about 85 yuan – the management revealed that the unit price of Q1 flash shopping orders has increased year-on-year, and the monetization rate is about 10%, so the revenue of flash shopping in the first quarter is about 4 billion.
From this, it can be inferred that the revenue of hotel, hotel and travel business is about 429-284-40=10.5 billion, which is 7.6 billion in the same period last year, an increase of about 38.2% year-on-year, and an increase of 133% compared with the first quarter of 2019.
According to our internal tracking data, in Q1 of 2023, the GTV of hotels, hotels and travel will be about 114 billion, a year-on-year increase of 31%. The growth rate far exceeds the 13.6% growth rate of the accommodation and catering industry as a whole in the first quarter.
As can be seen from the above figure, the scale of China's catering and accommodation industry in 2023 will just exceed that of Q1 2019 by about 20%, and the revenue of Meituan's in-store hotel and travel business is about 2.33 times that of Q1 2019.
Of course, the growth rate of the purely online catering and accommodation industry should far exceed 13.6%, but Meituan’s growth rate of about 38% is likely to exceed the overall growth rate of the market, or at least maintain the same pace. Losing market share, maybe even gaining. The high growth of Douyin does not grab the share of Meituan as a whole, but the new increase in the online conversion rate. In the long run, Meituan may also be the beneficiary.
The management of Meituan has made it clear that the in-store, hotel and travel business will gradually sacrifice part of its profits in pursuit of GTV scale, revenue and market share. However, in the first quarter, the operating profit margin of in-store hotel travel did not decline, and remained at a historical high of more than 45%. In the second quarter, it took the initiative to increase subsidies for both merchants and consumers to capture the opportunity of a sharp rebound in this industry .
Since March, Meituan's newly launched "Special Group Buying" column has been rolled out across the country. This is a new column launched for the marketing needs of special prices and explosive products. It can meet the needs of price-sensitive consumers to collect coupons and collect low-priced products. It can meet the needs of merchants to create explosive products and attract traffic.
In addition, Meituan’s newly launched short video and live broadcast services are also in the AB testing stage, and are currently open to some merchants, and Meituan also has its own official live broadcast. Consumers can search for “Meituan Live” in the Meituan APP. Directly enter the Meituan live broadcast interface. When searching for products daily, if the corresponding store is live broadcasting, there will also be a floating window on the product interface to promote the live broadcast entrance.
Faced with the opportunity of economic recovery, Meituan has also lowered the subscription fee threshold for some categories in third-tier cities and below, increased the rebate ratio for merchants, and increased the subsidy ratio for consumers, and optimized the subsidy effect through technology.
The above measures will certainly reduce the operating profit margin of the hotel, hotel and travel business, but it will also greatly increase the user stickiness of the platform, the friendliness of merchants, and the minds of users who prefer a one-stop local life service platform.
There are two major weapons for Douyin to enter the local life field, one is low price and the other is traffic. At present, Meituan is further strengthening the low-price label through measures such as merchant subsidies, consumer subsidies, and special group purchases, so that Meituan can meet the needs of users with the most abundant supply and the most cost-effective price at the same time.
In addition, reducing the operating cost of the entire platform is also an excellent way to use the Internet to feed back industries and help economic recovery.
The rise of Meituan along with the strong development of China's economy in the past 12 years has both the responsibility and the willingness to help the real economy recover . Only an Internet platform like Tuan can go further and develop faster .
Objectively speaking, Meituan’s significant reduction in platform operating costs will also set a new benchmark for the industry, which will make it more difficult for new platforms to gain users’ minds and make profits.
As for traffic, Meituan has strengthened emerging content marketing methods such as short videos and live broadcasts to help merchants expand new marketing channels. Of course, this is not enough to bridge the traffic gap with short video platforms, but we tend to think that low-priced users’ minds is number one, and GTV is a priority .
These measures seem to be working well. After the financial report, the management stated that the in-store hotel travel business recorded strong growth in the second quarter, and the GTV growth rate was much faster than the revenue growth rate. The GTV growth of the hotel travel business during the May Day period was even greater. More than 2 times.
Judging from the growth rate in the first quarter and the forecast in the second quarter, we may need to embrace the fact that Meituan’s in-store hotel and travel business can develop rapidly on the premise of accepting new entrants such as Douyin and Kuaishou.
3. New business progress and future
In the first quarter, new business revenue was 15.7 billion, a year-on-year increase of 30.1%, basically in line with expectations.
This quarter's new business operating loss narrowed significantly to 5 billion, with a loss rate of 32%. It is close to the ideal state of Q3 in 2019-Q3 in 2020: the loss rate is controlled at around 25%.
In fact, flash sales were originally a new business, and the current loss rate of this business may be between 5-10%. If this business is still in the new business, the overall loss rate of the new business should have dropped to below 30%.
The most noteworthy new business is, of course, the commodity retail business. Flash sale belongs to commodity retailing, but it is included in the local core business, which is not shown here. The most worthy of discussion in the remaining part is Meituan Best Choice and Meituan Shopping.
These two businesses are very interesting: they are like two sides of the same coin, and they are like fraternal twin sisters, the same core, but very different appearance .
3.1 Meituan Best
Meituan Youyi is a bit like the next-day version of "Meituan Shopping": their category structure is highly similar, with fresh food as the main focus and daily fast consumption as the supplement; their product labels are highly similar, and they are all super hot products. Only those items with a wide range of needs can enter the preferred/grocery warehouse. Personalized and niche items are meaningless; their commodity organization forms are also highly similar, with origin warehouses and city warehouses, through point-to-point Logistics and transportation all require cold chain transportation. The front warehouses of Meituan shopping all over the city are actually similar to the preferred group spots, except that the rich people covered by shopping have the ability and willingness to pay for home delivery; For the low-line market users of 3-day logistics, Youyou is their "Meituan shopping".
So you see, the biggest difference between these two services is: the difference in coverage of the population.
At the current stage, Meituan You may need to continue to practice internal strength. On the one hand, the complexity of the community group buying business is very high. Meituan You and Duoduomaicai are currently ranked in the top two in the industry. This result has exceeded expectations, because Meituan is a complete newcomer. Entrants. On the other hand, the development momentum of the community group buying industry itself is also slowing down, increasing investment regardless of cost, and the ROI is not good.
However, in the long run, we believe that the preferred business has strategic value. It is a testing ground for Meituan to penetrate into a wider range of low-tier urban users, and it is also a bridgehead for the development of physical e-commerce.
In the past two years or so, the total number of transaction users of Meituan Optimal has reached 450 million, which is basically close to the user scale of Meituan Waimai.
Among the 450 million people, it is estimated that more than two-thirds are users in cities below the third tier. This is beneficial to the expansion of Meituan's in-store, hotel and travel business in the bottom-line market, and can generate cross-synergy.
More importantly, the preferred business itself is a very special kind of retail business: it pursues the ultimate price-performance ratio, super supply chain, and at the same time, it is an extreme test of cost control, and the user's disposable income is relatively limited, which is tantamount to forcing you to work together. Seeds of hope are planted in saline-alkali land.
3.2 Meituan Shopping
In the first quarter, Meituan Maicai’s GTV grew by more than 50% year-on-year, far exceeding its peers, and it is exploring new cities.
After the recovery from the epidemic, consumers embraced offline, which has both advantages and disadvantages for the front warehouse industry. Generally speaking, the advantages outweigh the disadvantages, because when the economy gets better, more people are willing to use this high-quality service.
In the case of running through the UE model, Meituan Maicai can have a strong ability to replicate, to new provinces, to new cities, and even to new countries.
Isn’t Meituan Maicai the online version of Sam’s Club and Costco? Sam’s Club and Costco can expand globally, and the winner of China’s pre-warehousing track—this may be a high probability—why can’t they finally go abroad?
Looking at Meituan’s sub-businesses, food delivery, in-store hotel travel, and grocery shopping may be the three most suitable businesses for internationalization. Of course, in terms of team capabilities, food delivery is the most competitive, but the commodity retail where grocery shopping is located The industry has the largest space. Costco only opens stores offline. In 47 years, its revenue has reached more than 200 billion U.S. dollars, and its market value has also exceeded 200 billion U.S. dollars.
4. The moat and possibility of Meituan Retail
The moat of Meituan’s retail is the moat of food delivery. To expand, it is the moat of instant retailing of everything at home.
Don't forget, catering retail sales are included in social statistics.
Takeaway has the characteristics of both commodity retail and service retail, because restaurant service personnel are required to serve immediately.
Meituan's retail business includes service retail and merchandise retail.
Service retail includes intra-city services such as in-store hotel travel, bicycles, taxis, and charging treasures. As a half member of service retail, food delivery empowers the entire service retail business: user delivery, member cross-selling, and ecological mind shaping. This river is relatively It is relatively shallow, and Meituan’s moat in this field is not too deep. It is basically an open and sustainable competitive market. Low prices and a wide range of products are the biggest competitiveness.
The commodity retail business includes Meituan Waimai, Flash Shopping, Meituan Best Choice and Meituan Shopping, as well as Meituan e-commerce, which has a weak presence.
At present (as of the end of 2022), the scale of the entire commodity retail business is about: about 800 billion for takeaway, about 135 billion for flash shopping, about 130 billion for online shopping, about 22 billion for grocery shopping, and about 8 billion for e-commerce, totaling about 1.095 billion. Categories accounted for 73%.
China's social zero is about 44 trillion, and Meituan accounts for about 2.5%.
On general e-commerce platforms, core categories account for 20-30%. Referring to JD.com, Ali, Pinduoduo, Kuaishou, Douyin, etc., it is unreasonable for a category like Meituan to account for 73%. It's hard to imagine that Meituan can accept that it can only do takeaway as a category.
Therefore, continuous attempts at commodity retailing are inevitable. Even if there are phased failures, such as Meituan e-commerce (Tuanhaohuo), which has been trying for a long time but has not found a specific path, it will still have to fail repeatedly.
Meituan Maicai was actually hatched after the failure of the Meituan Elephant Fresh Project, so we need to be patient.
And if Meituan is lucky enough to reduce the proportion of core category food delivery platforms to less than 30%, it may mean that its retail business has really succeeded.
5. In what ways will investment in technology affect the future of Meituan?
Meituan’s annual investment in scientific research is basically more than 20 billion yuan, accounting for nearly 10% of its revenue. This proportion does not seem high, does it?
If you try to exclude the delivery fee of Meituan Waimai—after all, the delivery is just a pass, and it ends up on the rider—the proportion may be as high as 15%, which is quite high.
In addition to the daily platform operation, system recommendation, human-goods matching, high-concurrency demand processing, intelligent scheduling, etc., scientific research investment is most important in the research and development of self-driving cars and drone technology, hoping to play a role in contract fulfillment .
Artificial intelligence is the general trend, and autonomous driving and drones are the major fulcrums of artificial intelligence in the field of consumer goods. If a breakthrough is made in this field, it will not only reduce Meituan’s performance costs, but also improve user experience and certainty of performance. At the same time, it may also transform the logistics industry, reducing the logistics and distribution costs of the entire commodity in China, even if it is 1 A drop of one percentage point can create a value of over 100 billion.
According to the China Federation of Logistics and Purchasing, the total cost of social logistics in 2021 will be 16.7 trillion yuan, accounting for 14.6% of GDP. In 2020, the total cost of logistics in the United States will account for 7.4% of GDP. Of course, the gap here is not entirely caused by technology, but it is an indisputable fact that China's logistics industry is backward in technology, and e-commerce platforms in the commodity retail industry have the responsibility to reform this.
The combination of artificial intelligence and Meituan may play a role in another field, that is, conversational artificial intelligence, which is the popular ChatGPT application.
If general artificial intelligence appears in the future, the entrance of human-computer interaction is likely to become AGI, and the interaction method is voice, which is a natural behavior in ordering food, booking hotels, and shopping.
If it really develops to this day in the future, based on traffic matching transactions, advertising-based platforms will face greater challenges, because AGI will capture part of this advertising revenue, because decision makers are no longer these grass-planting platforms, but It is AGI, and platforms that provide in-depth services in terms of transactions, supply chains, and contract fulfillment will be less affected.
Of course, if these platforms develop their own AGI, or a small model of their own industry, they are also expected to grab the advertising share of the entire industry.
At present, there is already a team in Meituan that is developing large-scale models, and Wang Xing himself has invested in the start-up company "Light Years Beyond" of his old partner Wang Huiwen.
This may prepare Meituan in this new field, or at least not be "stuck".
6. How to view the value of Meituan
As of the close on May 25, the market value of Meituan was 786.5 billion Hong Kong dollars, about 708.6 billion yuan.
The core local business can have an operating profit capacity of about 50 billion a year, and there are 111.5 billion cash and cash equivalents on the account. Excluding this part, it is equivalent to giving the core local business a price-earnings ratio of 11.9 times.
According to the profitability and growth level of core local businesses, the valuation of core local businesses alone should be between 750 billion and 1,250 billion under pessimistic market conditions, corresponding to 133-222 Hong Kong dollars.
Taken apart, instant retail alone has about 22 billion transactions this year. This is a winner-takes-all field with a stability close to WeChat. The annual revenue growth rate exceeds 25%, and a price-earnings ratio of 35 times is considered an underestimation.
In other words, the current valuation does not even give the current value of takeaway + flash sale, and everything else is free.
Of course, the market may not see these now. Such a good financial report, the market fell sharply in response, just because the OPM of the store was guided to a strategic decline in the second quarter.
Investors may have to temporarily forget about profits and valuations.
Meituan currently has no plans to keep profits. It has increased subsidies for food delivery, strengthened subsidies for merchants and consumers for restaurants, hotels and travel, and subsidized new businesses to expand the market. It is still rushing to grow.
Interestingly, the current Chinese Internet companies are trying to put profits into the real economy, trying to make the whole thing bigger, Pinduoduo is building a tens of billions of ecology, Alibaba 1 splits 6+N, and Taotian Group’s profits will be invested in e-commerce business. For large users, merchants and market size, JD.com has added tens of billions of subsidies, and Kuaishou and Douyin have transformed into shelf e-commerce.
This year's Chinese retail industry may be the most interesting year in the past three years.
Everyone is gearing up, and everyone understands that if you invest profits in the real economy, you may not be able to live well; but if you don't, you will definitely not live well.
In order to have a source of fresh water, Internet companies have completely figured it out.