On August 24, Meituan (stock code: 3690.HK) released the second quarter and half-year results of 2023. In the second quarter of this year, Meituan achieved revenue of 68 billion yuan (RMB, the same below), an increase of 33.4% year-on-year.
According to the financial report, in the second quarter, Meituan continued to further promote the "retail + technology" strategy, continued to increase investment in the Chinese consumer market, and R & D expenditure increased to 5.40 billion yuan year-on-year.
Under the background of continuous transformation and upgrading of consumption structure and equal emphasis on consumption of goods and services, Meituan has made significant progress in activating the local consumer market and improving the efficiency of retail of goods and services. In the second quarter, Meituan achieved an operating profit of 4.70 billion yuan, and the number of orders delivered by the platform reached 5.40 billion.
"Thanks to the arrival of the traditional peak consumption season, the company’s various businesses achieved healthy growth in this quarter," said Wang Xing, CEO of Meituan. "With the local lifestyle market showing a good trend of steady recovery, we will continue to focus on the’retail + technology ‘strategy to meet the increasingly diverse consumer needs of users, and use technology to promote the efficiency of local commodity retail and service retail, so as to help everyone eat better and live better."
Instant retail sales are growing steadily, with monthly orders for takeout reaching a new high
Meituan continued to capitalize on its supply advantages in various scenarios such as instant retail and "food, accommodation, travel, shopping and entertainment", focusing on meeting local consumer demand. Driven by this, Meituan’s core local business achieved steady growth, with quarterly revenue reaching 51.20 billion yuan, an increase of 39.2% year-on-year.
As consumers’ demand for shopping convenience and timeliness continues to improve, the scene and richness of instant retail continue to expand, and the number of instant delivery orders in this quarter increased by 31.6% year-on-year to 5.40 billion orders. By strengthening supply and optimizing subsidy strategies, takeaway can better meet the different needs of users with different prices, and the stickiness between users and platforms is further increased. Against this background, Meituan takeaway monthly orders reached a record high in August.
This quarter, Meituan flash sale orders and active users continued to grow at a high rate, and consumers’ brand mentality towards Meituan flash sale diversity and convenience was significantly strengthened. Spurred by numerous holiday spending and marketing activities in the second quarter, the online penetration rate of electronic products and home appliances in second- and third-tier cities accelerated significantly, and categories such as daily necessities, beauty and personal care, and maternal and infant products all showed strong quarterly growth.
The peak order volume of Meituan flash sale day exceeded 11 million orders again this quarter, and the demand side in turn promoted the richness of the supply side on the platform. The number of active merchants in Meituan flash sale increased by 30% year-on-year.
Service retail supply and demand are booming, and the transaction volume of wine and tourism to the store has increased by 120%.
In the second quarter, consumer demand for service retail rebounded sharply, and consumer demand for catering, travel, accommodation, sports and entertainment was strong. Meituan continued to optimize the platform supply to meet service consumer demand, while actively helping the digital transformation of the service retail industry.
Meituan takeaway saw the number of new merchants more than double year-on-year in the quarter, with the growth rate of brand merchants being particularly strong; the transaction volume of the wine and hospitality business increased by more than 120% compared with the same period last year, and the high-quality supply was further enriched. The number of annual active merchants and annual transaction users also reached a new high.
Meituan also continued to focus on live local life, using digital marketing methods to help physical merchants gain traffic. Meituan Takeaway upgraded its monthly marketing activity "God Coupon Festival" and promoted the "God Snatch" marketing activity to more cities to help merchants create explosive products. In the recent Meituan Takeaway God Coupon Festival live broadcast, 18 explosive products were sold out in 1 second. Among them, the local live broadcast drove Haidilao’s new customer WoW to increase by 179%, and the new customer WoW of Juewei Duck Neck increased by 69%.
At the end of July, Chongqing’s local entity chain Supermarket Heavy 100 Supermarket opened the "offline store" into the Meituan live stream. The live stream sales that day exceeded 20 million yuan, and the order verification rate exceeded 90%, setting a new record for the live stream of Supermarket Group Buying.
Chen Shaohui, CFO of Meituan, said: "In the first half of this year, the local lifestyle sector represented by’food, accommodation, travel, shopping and entertainment ‘benefited from the vigorous growth momentum of commodity retail and service retail. Meituan gave full play to the business attributes of high-frequency and rigid demand to meet more new demand and create more new supply. In the future, Meituan will further promote the digital upgrade of the commodity retail and service retail industries to create value for all parties in the industry."
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