Im Oktober 2023, news emerged that Meituan Maicai would open a new hub in Hangzhou, marking a significant move since Zhang Jing’s promotion to Vice President of Meituan.
Amidst the prevailing industry trend of “surviving,” Meituan Maicai remains one of the few companies in the fresh food front warehouse track maintaining nationwide expansion.
It is reported that this year, Meituan Maicai has already entered two new cities, Suzhou and the soon-to-be-opened Hangzhou, both located in East China.
To date, Meituan Maicai has established operations in eight cities, including Beijing, Langfang, Shanghai, Suzhou, Shenzhen, Guangzhou, Foshan, and Wuhan. This indicates that Meituan Maicai’s layout covers various regions including East China, South China, North China, and Central China.
Notably, the replication speed of Meituan Maicai is not particularly fast and is relatively slow compared to internet companies. Over several years of development, Meituan Maicai has expanded to fewer than ten cities, with Foshan and Guangzhou effectively considered one city.
Thus, some observers believe that Meituan Maicai’s expansion into the Hangzhou market is not surprising.
Jedoch, they also point out that Meituan Maicai is unlikely to rapidly expand nationwide in the short term, unless the industry undergoes significant changes, such as the downfall of other major competitors like Dingdong Maicai and Pupu Supermarket, which would accelerate Meituan Maicai’s expansion.
Zusätzlich, Meituan Maicai’s approach to opening the new Hangzhou hub is similar to its strategy in the Suzhou market, both led by the Shenzhen team rather than the Shanghai team (the Shenzhen market is currently one of the best-performing among the eight cities).
Despite this, it remains challenging for Meituan Maicai to displace Dingdong Maicai in East China. Dingdong Maicai is particularly strong in East China, especially in Shanghai and Suzhou, and has established certain local barriers in fresh food operations. On the product level, particularly with its own brand products, Dingdong Maicai has shown relatively good performance in East China.
Market observers note, “It doesn’t seem easy to push out Dingdong Maicai at the moment. Although there are rumors from the Guangzhou and Shenzhen markets that Dingdong Maicai is considering withdrawing, the team remains very strong in East China, especially with a gross margin of 35%.”
Unwilling to be passively attacked, Dingdong Maicai has also recently intensified its efforts in the Beijing market. Beijing is not only the headquarters of Meituan Maicai but also of JD.com.
Dingdong Maicai already has over 100 front warehouses in Beijing and has appointed Yan Xianfu, who performed well in the Jiangsu market, as the head of the Beijing market.
Meituan Maicai’s new openings in Hangzhou and Suzhou demonstrate its accelerating strategy to “encroach” on Dingdong Maicai.
Gleichzeitig, another giant, JD.com, has also entered the front warehouse track, testing the waters in the Beijing market. Market observers say, “As of the end of September, JD.com’s warehouse opening speed in Beijing was slower than expected, far behind Meituan Maicai, possibly encountering some issues. So far, JD.com has opened fewer than 20 front warehouses in the Beijing market.”
In today’s market, whether in fresh food or other industries, development generally requires a combination of online and offline integration, leveraging the advantages of both to upgrade business operations and expand the industry.
In summary, Meituan Maicai is accelerating its national layout by opening a new hub in Hangzhou. Jedoch, defeating Dingdong Maicai in East China is challenging due to the latter’s strong performance and local advantages. Zusätzlich, JD.com’s foray into the Beijing market with front warehouses intensifies the competition. As the industry evolves and competition intensifies, the fresh food e-commerce market will continue to develop and transform.
