Latest news with #Meituan
South China Morning Post
9 hours ago
- Business
- South China Morning Post
Why China's problem of cutthroat competition demands the world's attention
When Joseph Schumpeter coined the term 'creative destruction', he might not have realised just how destructive unrestrained competition could be. That is the paradox at the heart of China's recent economic success. Advertisement On Monday, People's Daily ran an editorial , calling for neijuan or involution – a self-defeating cycle of excessive competition – to be nipped in the bud. For China's Communist Party mouthpiece to publicly acknowledge the issue signals its severity. Involution has become an economic undercurrent shaping what we are seeing, from industrial strategy to global trade dynamics. For example, around the time the People's Daily article was published, BYD slashed prices on 22 vehicle models by up to 34 per cent, with its Seagull model now selling for just 55,800 yuan (US$7,750). Other competitors are likely to follow suit shortly. Headlines largely focused on the stock price of carmakers. However, the real story is that BYD could have just priced an entire cohort of Japanese, Korean and European cars out of relevance. Let's not forget the knock-on effects: foreign carmakers facing shrinking margins and slowing innovation budgets could end up withdrawing from electric vehicle (EV) battles they cannot win. Then there are Meituan and , both stepping up subsidies, fighting for user growth in an already saturated food delivery market. This is not because demand has collapsed but because competition has become pathological. Businesses are stuck in a race to the bottom. Advertisement Classical economic theory suggests profits will converge to a normal level in the long run, but such intense competition means supernormal profit plunges quickly while subnormal profit takes much longer to converge upwards. Margins get relentlessly compressed. Incentives trigger an excessive response. Everyone chases the same opportunity – often recklessly.
South China Morning Post
a day ago
- General
- South China Morning Post
Forget tourist fads. Let's better preserve, promote Hong Kong heritage
I have been trying to discover Hong Kong's 'hidden gems', as seen through the eyes of a budget traveller. Out of curiosity, I downloaded and explored mobile apps such as Meituan and RedNote (also known as Xiaohongshu ), to see what a local might be missing out on. Some of the recommended spots seem debatable, including the alleyways between Tai Wai's village houses that have been dubbed 'Little Kyoto', an ordinary street sign on the corner of New Praya in Kennedy Town and the Hong Kong Cemetery in Happy Valley . Some of the new hotspots are rediscovered backdrops for Hong Kong film scenes while others don't appear to offer much substance, as far as I can discern. Regardless of their credibility, however, these faddish 'landmarks' are a validation of the government's vision that 'tourism is everywhere' in Hong Kong. The government is also launching initiatives such as the 'Hong Kong industrial brand tourism' project to highlight iconic local brands and offer factory tours. One cannot help but wonder, however, if Hong Kong is so lacking in architectural and cultural heritage that travellers have to make up their own and the government has to seek help from local brands. In particular, what are we looking for when we seek heritage? Recommendations and definitions from the Heritage Discovery Centre and the Antiquities and Monuments Office aside, I would say anything handed down from the past, a practice or tradition, whether for a country, a city, or a family, counts as heritage. Indeed, what qualifies as heritage can be highly subjective. More importantly, we preserve and revisit our heritage because of a sense of purpose, honour, pride and value.
Time of India
4 days ago
- Business
- Time of India
Chinese food delivery giant Meituan flags volatility as competition heats up
HighlightsMeituan reported a 46% increase in first-quarter net profit but anticipates potential challenges in the second quarter due to heightened competition in the instant retail sector. The company has pledged 100 billion yuan over three years for supply-side innovation as it faces aggressive competition from Alibaba's and JD Takeaway, both of which have committed substantial subsidies to attract customers. Meituan is expanding its international presence with a $1 billion investment in Brazil and is also focusing on unmanned drone delivery and artificial intelligence technology. China's leading food delivery group Meituan on Monday reported a 46 per cent rise in first-quarter net profit but warned that the second quarter would likely be hit by increased competition in so-called "instant retail". CEO Wang Xing told analysts on a post-earnings call that it was "impossible" to give accurate financial guidance for the rest of the year as competition is ramping up in the sector, which refers to online purchases delivered within 60 minutes. "Nobody should be surprised if there is volatility in short-term financial results," he said. In February, online retailer responded to Meituan's moves to expand beyond meals by moving aggressively into Meituan's core food delivery business. Alibaba , which operates the second-largest food delivery app, has also moved to increase its bets on the instant retail space. Both JD Takeaway and have pledged 10 billion yuan ($1.39 billion) in subsidies to boost sales. "Ten billion here, ten billion there, every internet player wants to chip ten billion into this game," Wang said, as he pledged 100 billion yuan over three years for supply side innovation. Meituan has nearly 70% of the delivery market, Morningstar analysts said. Defending that customer base could prove expensive amid the intensifying competition, squeezing profit margins, they said. Another challenge could come from regulators, with China's State Administration for Market Regulation recently drafting new guidelines about how platforms such as Meituan, and Alibaba should charge fees to merchants. "I believe it's the job of the regulators to stop this irrational and unhealthy subsidy competition, and it's our job to win the fight as long as it goes on and we will do everything we can to win that fight," Wang said. Meituan reported revenue in the three months to March 31 of 86.6 billion yuan, a slightly larger-than-expected 18.1% rise. Fourteen analysts polled by LSEG had expected a 16.5% revenue gain. This month, Meituan announced a $1 billion investment over the next five years as it enters Brazil with its Keeta app. As well as expanding its international business - Keeta also operates in Hong Kong and Saudi Arabia - Meituan has been investing in unmanned drone delivery and has joined the AI race, pledging to invest "billions" of dollars in the technology.
Zawya
4 days ago
- Business
- Zawya
Keemart by Keeta launches in Riyadh, starting with Al Yasmin and Granada districts
Saudi Arabia - Keeta, the international subsidiary of Meituan - China's leading on-demand delivery giant - has officially launched Keemart, a new grocery delivery service designed to bring everyday essentials to users' doors in just 15 minutes. The service is now live in the Al Yasmin and Granada districts of Riyadh, with plans to expand across the city and other regions in Saudi Arabia. With Riyadh's fast-paced lifestyle and growing demand for digital convenience, Keemart comes at a time when convenience is no longer a luxury, it's an expectation. Keemart offers a practical and timely solution for residents seeking quick, reliable access to groceries and household necessities. The platform not only eliminates the need for last-minute store trips but also empowers local merchants by broadening their digital footprint. Keemart is built for everyday accessibility. Through the Keeta app, customers can browse an expanding selection of fruits, vegetables, snacks, beverages, dairy products, cleaning supplies, and personal care items. All products are sourced from trusted brands and suppliers to ensure freshness and quality. 'Our goal is simple: to make daily life easier for individuals and families across Riyadh,' said Aria Liu, Head of Keemart in Saudi Arabia. 'With Keemart, we're offering a faster, more reliable way to get everyday essentials delivered right to your door. This is part of our broader mission at Keeta to help people eat better, live better.' Couriers are stationed at local fulfillment hubs for immediate dispatch. All frozen and temperature-sensitive items are packed with ice packs to maintain optimal quality. Deliveries are powered by a smart dispatch system and an advanced last-mile logistics network - ensuring precise, efficient, and professional service from order to doorstep. Keemart's growth strategy includes rapid expansion into more Riyadh neighborhoods, followed by a nationwide rollout. This initiative aligns with Keeta's long-term vision to enhance quality of life through digital innovation while supporting Saudi Arabia's Vision 2030 through technology, job creation, and the empowerment of local commerce.
Forbes
5 days ago
- Business
- Forbes
China Market Update: Q1 Results From Meituan, PDD & Kuaishou
CLN KraneShares Q1 Earnings Reports Meituan (3690 HK) reported Q1 earnings after the Hong Kong close on Monday that beat analyst expectations. Management addressed the recent RMB 10B food delivery subsidies from and Alibaba's stating that after ten years of competition, Meituan is 'going to take whatever measure it takes to win the game.' The company has highlighted the recent success of Meituan's "Insta-shopping" in '3C home appliance, beauty and personal care, mom and child, pet care, daily necessity, and apparel.' The company will invest RMB 100B in food subsidy promotion plan over the next three years. E-Commerce company PDD reported its Q1 earnings before the US market open today. 'In the first quarter, we made substantial investments in our platform ecosystem to support merchants and consumers amid rapid changes in the external environment,' said Mr. Lei Chen, Chairman and Co-Chief Executive Officer of PDD Holdings. The 'external environment' refers to the challenges Temu faces due to US tariffs and the elimination of the de minimis exemption. The investment in the core business weighed significantly on the bottom line. PDD did not mention relisting in Hong Kong on the management call, which is disappointing. Online video Kuaishou (1024 HK) reported its Q1 earnings and attributed the strong results to its large video generation model called Kling AI, though adjusted EPS was a touch light. Asian equities delivered a mixed performance overnight as the US dollar strengthened and Thailand underperformed among regional markets. Hong Kong rebounded following Monday's weak trading session, which was driven by price wars in the electric vehicle (EV) and hybrid sectors after BYD Company Limited (BYD, -1.65% today, -8.6% yesterday) cut prices. Autos were mixed after yesterday's steep sell-off: Geely Automobile Holdings Limited (Geely, -1.74% today, -9.46% yesterday), Li Auto Inc. (Li Auto, +1.64% today, -3.17% yesterday), XPeng Inc. (XPeng, +0.27% today, -4.44% yesterday), and NIO Inc. (NIO, -2.06% today, -3% yesterday). Internet stocks rebounded after yesterday's downdraft. Meituan (Meituan, +2.09% today, -5.48% yesterday) rose after reporting earnings following the Hong Kong close and on strong buying via Southbound Stock Connect. Other notable moves included Tencent Holdings Limited (Tencent, +0.39% today, -1.54% yesterday), Alibaba Group Holding Limited (Alibaba, +0.94% today, -1.6% yesterday), Inc. ( -1% today, -1.74% yesterday), Kuaishou Technology (Kuaishou, +0.52% today, -0.51% yesterday), NetEase Inc. (NetEase, +1.53% today, +0.37% yesterday), and Group Limited ( +0.33% today, -0.66% yesterday). There were numerous headlines about the food delivery rivalry among Meituan, Alibaba's and though Meituan traded higher following its strong results. Hong Kong remained resilient as the pre-Liberation Day resistance level continued to hold following the recent rally. Mainland China had a weak session, with banks outperforming, though trading volumes in the National Team's favored exchange-traded funds (ETFs) were light. Semiconductor stocks saw profit-taking after yesterday's strong performance, which had been driven by news that Nvidia Corporation would be selling lower-level chips to Chinese companies. After the close in Mainland China, Beijing Chengtong CES Financial Investment Co. announced an investment of 600 million renminbi (RMB) into three ETFs focused on state-owned enterprises (SOEs) in the digital economy. The Lujiazui Forum, an economic policy-focused event, is scheduled to take place in Shanghai on June 18th and 19th. Meanwhile, Moody's reaffirmed China's sovereign credit rating at 'A1', with a negative outlook. New Content Read our latest article: New Drivers For China Healthcare: AI Med-Tech Innovation, Cancer Treatment, & Favorable Balance of Trade Please click here to read Chart1 KraneShares Chart2 KraneShares Chart3 KraneShares Chart4 KraneShares Chart5 KraneShares Chart6 KraneShares
