From the income performance, Meituan Q1 performance pressure is obvious, but due to exceed expectations, the capital market or give a good signal. By the end of the 26th, Meituan Hong Kong shares rose 10.41%.

In the short term, Meituan’s main business is still facing challenges, but the recovery trend revealed in the financial report is also relatively clear. It is not difficult to understand that even if Meituan Q1 performance has declined, but the capital market is optimistic, in fact, is a long-term Meituan holding many new growth opportunities.

Fresh e-commerce favored

Under the epidemic, fresh e-commerce ushered in a wave of user influx and capital increase small climax.

On the one hand, the mainstream fresh food e-commerce platforms have achieved a significant increase in the number of active users during the epidemic. Ai vector of the “2020 China times” disease “after fresh electricity running large data and development prospect of the research report shows that many mainstream fresh electric business platform at the beginning of the epidemic, now after two weeks, new users are established in more than 10000, and showed a trend of rising, part of the platform, and new users reached 50000 or more.

On the other hand, fresh e-commerce giants continue to increase efforts in food safety, supply chain, terminal distribution and other aspects. Throughout the series of actions of the mainstream fresh e-commerce platform during the epidemic, it can be found that under the transportation challenge brought by the epidemic, in order to meet the sudden increase in demand, the giants generally focus on the fresh supply chain, and take the nearest source of goods, customized transportation lines.

This change in the short term to fresh e-commerce industry pushed forward, but the significance is not limited to this, whether it is the formation of user consumption habits, or users of fresh e-commerce understanding change, will let the fresh e-commerce industry to complete a national industry education.

Meituan also benefits from this. Q1 Meituan flash shopping and Meituan shopping have made important contributions to ensuring urban life. Apparently, Meituan is also benefiting from increased demand from fresh e-commerce. Of course, this growth is also due to Meituan’s huge user base and efficient distribution facilities.

Fresh electricity business industry will begin to accelerate, but Meituan in this track of cultivation has already begun.

First of all, users’ high frequency demand for fresh food e-commerce exists for a long time, which is a long-term good for large platforms like Meituan, because user demand will be transformed on the platform.

Secondly, Meituan’s experience in delivery and delivery can strongly support the rapid expansion of meituan fresh e-commerce business, that is, while ensuring the expansion of service scope, Meituan can also maintain good service quality and high distribution efficiency.

Finally, Meituan’s long-term investment in fresh e-commerce business is very firm. From Meituan buy vegetables to small elephant fresh and then to daquan dishes, Meituan has increased its fresh business for many years, and has a deep layout in BOTH B and C ends. Under such long-term investment, Meituan’s fresh e-commerce business will only become stronger and stronger.

Habit change leads to new increments

The increase in demand for fresh electricity suppliers shows that users’ consumption habits are changing and they begin to switch from offline to online. An authoritative report provides an answer to how much this change in consumption habits has brought to the online market.

In March this year, the annual Theme Survey Report of China Consumers’ Association 2020 jointly released by China Consumers’ Association and People’s Daily Online showed that due to the impact of the epidemic, online consumption has obviously replaced offline consumption. Nearly 60% of respondents’ online consumption has exceeded offline consumption, and over 70% of consumers’ online consumption has increased year-on-year.

It can be seen that the epidemic has changed consumption habits to a greater extent than expected. On the one hand, most of the demand under the epidemic can only be released through online channels, and on the other hand, online shopping has not brought bad experience to consumers.

From fresh produce to everyone’s electricity, consumers are inclined to online consumption, which means that whether it is high frequency demand or low frequency demand, consumers are beginning to rely on online channels, and this change will affect their consumption path in the long run, making them choose online channels first.

This change also brought more customers to Meituan in Q1. According to the report, more consumers are accustomed to using takeaway services to consume meals during the epidemic. This information can be further interpreted as two points: first, more Meituan users who had used non-food services began to use food delivery services; Second, more new users choose meituan to order food and takeout.

I have to say that under the impact of the epidemic, Meituan users have a stronger desire to consume online. From the perspective of full service coverage of Meituan, online consumer habits will bring two aspects of good news.

First, users who are accustomed to meituan’s food delivery services will choose nearby non-meal delivery services, such as medicine, fresh food and medical beauty. Second, more new users will be attracted by Meituan’s catering and non-catering services.

From the perspective of consumers, under the dominance of online consumption habits, consumers’ previous offline consumption will be transferred to online consumption, which means that Meituan users will consider more concentrated consumption on Meituan, especially those with high stickiness and loyalty.

In the long run, the online consumption habits will further increase the takeout penetration rate of meituan’s whole business and continue to strengthen users’ use habits of takeout services, thus effectively increasing the transaction frequency and transaction volume of individual users on Meituan.

Businesses move services online

The online consumption of the whole people also indirectly educates the cognition of the sellers. According to Meituan’s Q1 financial report, many high-end restaurants, highly rated restaurants, chain restaurants, black Pearl restaurants and five-star hotels that did not provide takeout or limited takeout services in the past have started to launch takeout services as their main businesses under the epidemic. In addition, small and medium-sized independent restaurants have also strengthened the importance of selling services.

Survival is at the heart of why high-end businesses are embracing the takeaway business. Under the epidemic, merchants’ income from offline channels is 0, so it is obvious that online channels become the only choice, after all, catering businesses also have to bear a lot of extra costs during the epidemic.

It is worth noting that many businesses not only take the initiative to online take-out, but also show a high level of enthusiasm for selling business, very active. According to Meituan’s Q1 earnings report, the annual number of active merchants reached 6.1 million by the end of the first quarter, up 300,000 from the same period last year.

The market and consumers force online businesses. On the one hand, it brings many high-quality businesses to Meituan and provides users with more catering choices. On the other hand, based on the entry and high activity of high-end businesses, it also effectively increases the customer unit price of Meituan. According to earnings, the average value per order of food delivery services increased 14.4% in the first quarter from a year earlier.

In the long term, the irreversible trend of going online will bring more high-end merchants to Meituan, both in catering and non-catering businesses, as well as merchants focusing on the delivery business. The increased activity of merchants also means that merchants will invest more costs in online channels for marketing services or upgrading services, which is also good for Meituan’s online marketing business.

The increased diversity of merchants and the focus on delivery services will benefit the optimization of meituan’s entire super platform ecosystem, especially the service quality and efficiency. At the same time, as more users choose to consume on Meituan, the supply and demand matching between more active merchants and users will also become an effective driving force for The growth of Meituan.

See the logic of the future

The epidemic has led to a profound reform in the consumption mode of the whole society, and online has become the consensus of consumers and businesses. Because of this, the main scene of consumption has shifted to online, and platforms that can provide online services, including Meituan, are the beneficiaries of this wave of dividends.

In meituan’s Q1 financial report, although we saw the short-term challenges caused by the epidemic, more importantly, we saw a resilient Meituan and many opportunities it is facing.

Favored fresh e-commerce, online consumption and online business not only provide strong support for Meituan’s Q1 performance beyond expectations, but also create a benign environment for Meituan and provide considerable horsepower for its long-term growth.

For Meituan, these new changes created by the macro environment affect the two most important roles in meituan’s ecosystem: users and merchants. Users’ preference for online consumption and merchants’ emphasis on online channels will make Meituan, the “super consumption infrastructure”, bigger and more frequent.

Recovery is orderly, surrounded by online dividend meituan, the following performance can be expected.

Article/Liu Kuang public account, ID: Liukuang110