Instant Retail Business Survey 2022

Research time July 22

Core point of view:

1. Instant retail business is in an explosive period
2. Catalyzed by the epidemic, offline merchants and retail platforms are in a two-way honeymoon period
3. The future scale will be a trillion-dollar market, the market should not be underestimated, and the advertising business is an important
   
   business comparative advantage

• The moat of the platform model is: online traffic + offline distribution network, rider costs can be passed on, and platform operating costs can decrease marginally as the scale increases.
• Self-operated model: the advantage is its brand effect, and the main costs are the cost of goods, distribution costs and rent costs. Some distribution costs can be passed on.

• Meituan’s flash sale has an annual gmv of more than 80 billion, with a growth rate of 66%.
• JD Daojia has an annual gmv of 41.5 billion and an annual order of 220 million.
• Dingdong Shopping, annual gmv 21.4 billion, gross profit 10.4 yuan
• Fresh daily, covering 16 cities.

Industry Overview: Conclusion Supply and Demand Resonance, Future Trillion Blue Ocean

• my country's economic growth model has changed from: export + investment to export + investment + consumption.
• Compared with developed countries such as the United States, my country's service industry has a huge gap, which means that there is huge room for development.

• Per capita disposable income continues to increase, and the horizontal comparison shows that the consumption market has great potential.

my country's real-time retail business has exploded, and investment compound interest has great potential

• Instant retail is an extension of food delivery
• Dada Logistics has been online since 2014
• Meituan Waimai was also launched in 2014
• JD Daojia has been online since 2015
• Dada and JD Daojia merged in 2016
• In 2020, Dada JD Daojia will be launched
• In 2021, the Jingdong hourly shopping service will be launched.

Consumers are already accustomed to instant retailing.
After remote e-commerce has solved the problem of "many, good, and cheap", instant retail is solving the final shortcoming: fast

suppliers, platforms, and users rush in two directions.

It is estimated that the instant retail market will be a trillion market in 2025.

The advertising business cannot be underestimated.