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Jul 16, 2020 10:15 am ·

MissFresh Saw Positive 2019 Earning

MissFresh’s CFO, Wang Jun recently indicated that MissFresh has turned its overall earning positive since 2019, beating expectations. This performance proves the success of the front end warehousing model and could justify millions of investments the company has attracted despite harsh macro conditions. Front End Warehousing Model Currently, in the industry, one model is the front end warehousing model led by MissFresh, and another is fresh food + restaurant and storage model led by Hema. The front end warehousing model received many doubts from industry insiders, among them was Hema’s CEO Hou Yin. He decided to close the front end warehouses Hema Stations since March this year, switching to community stores called “Hema Mini”. Recently Hema Mini’s earnings have also turned positive in June. Despite concerns, MissFresh always maintains the belief that although establishing front end warehouses has a low entry barrier, the time and investment dedicated to perfect the system, service, and supply chain has created an economic mote in MissFresh’s operation.  The price war in Shanghai According to Wang Jun, an algorithm-driven operating model makes the business easy to scale, but the failure in Shanghai was still a valuable lesson for the company.  Going into Shanghai, Beijing based MissFresh invested more than 1 billion CNY in eastern China aiming to take first place in market share, but it ended up taking only 1/10 of market share compared to Dingdong Maicai(叮咚买菜), which was based in Shanghai. According to Wang Jun, MissFresh’s failure can be attributed to both overemphasizing on inefficient price war and failing to localize its business.  Wang Jun also expressed that reaching 10 billion CNY sales could be a critical mass in this competition, and that’s likely why Dingdong also entered Beijing. 

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May 23, 2020 12:43 am · EBRUN

Miss Fresh to Complete E Round of Financing

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May 22, 2020 09:44 am ·

Miss Fresh Closes a New Round of Financing

► Miss Fresh has completed eight rounds of financing of USD 1.53 billion within five years. ► Controlling cost and efficiency are the challenges that Miss Fresh faces. Miss Fresh has completed a new round of financing, with a pre-investment valuation of over USD 3 billion, led by multiple investors including CICC Capital, a Chinese media claimed. With boasts of its capital advantage, the firm is aggressively threatening other competitors such as Fresh Hema and Meituanmaicai (美团买菜). Miss Fresh, the earliest practitioner of front-end warehouses, focuses on the establishment of cold chain logistics systems to provide users with a 2-hour delivery service. Starting from 2014, the firm completed eight rounds of financing, including Tencent, Lenovo Venture Capital, Tiger Global, Jeneration Capital.  As an e-commerce company whose business model is real-time delivery, Miss Fresh targets users who do not have free time to shop offline but pursue delivery efficiency. However, under the track of the fresh front storehouse, the firm faces brutal challenges due to the high cost bought by self-operated delivery. It is hard to support sufficient gross profit because of the short delivery time and the need for pretreatment.  Fresh Hema, backed by Alibaba, also withdrew from the Fuzhou market in May 2020. Even if the closing of the store seems to be a normal business adjustment, it is of great significance to the fresh retail industry. Although three meals are a necessity, in the case where the total amount is unlikely to increase dramatically, existing users have become a competing place for all players. Affected by the epidemic, the fresh food industry saw explosive growth as user demand rose rapidly. Traffic is still flooding in. However, fierce changes in the competitive environment, as well as the diversity of consumer choices, make the fresh retail track always coexist with flowers and thorns. To stand out, Miss Fresh must put much effort into efficiency, the fundamental of fresh food retail. Xu Zheng, the founder of Miss Fresh, said in a letter on the fifth anniversary of the company that the first half of the fight is model, the rest is strength. Online fresh retail may be more concentrated than offline retail, but there is no winner-take-all. In other words, whoever wants to dominate the market, kill opponents, or advocate the ultimate model risks sounding futile.

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May 11, 2020 10:18 am · 36kr

MissFresh and Kimberly-Clark reached a cooperation

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May 7, 2020 05:15 pm · ifeng

Yisai beef joins the MissFresh Club

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Feb 19, 2020 08:36 am ·

WeChat Pay Makes Access Easier for Retail Mini Program Users

On February 18, 2019, WeChat launched a ‘Smart Retail’ entry point on its payment page, where the mini-programs of merchants such as Miss Fresh, Yonghui Superstores, Uniqlo and Walmart are handier for online buyers to access. The new function is available for users in Shenzhen and will be accessible in cities including Beijing, Shanghai, Guangzhou, Chengdu, Chongqing and so on. Known as apps inside apps, mini-programs are lightweight portals that run inside another app like WeChat, Alipay or Baidu. WeChat smart retail is a new entrance to help merchants gain more users, leveraging their strength both online and offline. Moreover, the location-based service (LBS) in the WeChat app will gather real-time product information and promotions in the physical stores of its co-operating merchants and send them to users based on their current locations. The coronavirus outbreak has triggered a widespread shutdown of stores and malls, which has taken a heavy toll on China’s retail & consumer sector. Many retailers offer ‘contactless’ pickup via WeChat mini-programs to ensure safe delivery to customers and to lower their operational risks. On February 12, WeChat released the data of mini-programs during the epidemic period. From January 20 to February 8, the orders of fresh groceries increased by 149%, and the number of transactions in community-based e-commerce surged 322% year-on-year. Miss Fresh, one of the top players in this sector, reported a 309% jump in online orders and a 465% increase in transaction volume compared with the same period last year. Therefore, to accelerate the smart retail sector now is a serendipitous move for Tencent. Tencent’s smart retail strategy dates back to 2017. On December 15, 2017, Tencent invested CNY 4.2 billion ( USD 636 million) in a 5% stake in Yonghui Superstores, the supermarket chain in China. Soon after that, Tencent and Yonghui invested in Carrefour China in a move to revive the French company’s mainland business. More importantly, to work together on smart retail, mobile payments and data analysis. As the most crucial investor and the biggest shareholder of JD.com, Tencent has collaborated with JD.com in expanding its smart retail landscape, including the investment of Vipshop, the co-operation with Suning and Wanda, and the acquisition of an 11% stake in BBK Commercial Chain, the largest retail entity in southwest China and the ninth-largest retailer in the country. Via WeChat Pay, Tencent Cloud, mini-programs and so on, Tencent has built an ecosystem that can expand fast to follow demand in the smart retail sector.

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Jan 9, 2020 03:54 pm ·

Nice Tuan Fueled with USD 80+ Million by Alibaba, Investors

Nice Tuan (十荟团), one of the top players (or maybe survivors) in community group buying, has announced a new round of funding of USD 88.3 million. Investors include Joy Capital (愉悦资本), Yingce Capital (渶策资本), Qiming Venture Partners (启明创投), Alibaba (阿里巴巴), Zhen Fund (真格基金) and China Growth Capital (华创资本). People in charge of the announcement said the proceeds will be used to strengthen its supply chain, as well as the base technology, and to accelerate its business in low-tier cities. Founded in April 2018, the company focuses on distributing fresh groceries and daily necessities in the tier-two and tier-three cities, where the group buying model has been growing. The group buying retail concept was created by Jack Ma in 2016. It has brought a revolution to retail, both online and offline. With over 6.8 million mom-and-pop stores in China, almost 100 community group buying companies emerged to directly service consumers in the two years after 2016. They operate on an e-commerce model, helping people living in close communities, leveraging the WeChat mini program platform to make a bridge between vendors and customers. However, due to a combination of reasons such as intense cash flow, venture capital’s more prudent attitude and management issues, most of these companies died last year in the throes of the recession. According to a news release from ebrun.com on March 2019, Nice Tuan ranked fourth in monthly GMV after Xingsheng Selected (兴盛优选), Shixianghui (食享会) and Niwonin (你我您). The top four community group buying companies in China generated revenue of CNY 370 million, CNY 210 million, CNY 200 million, CNY 150 million respectively. The company that ranked fifth was named Songshu Pinpin (松鼠拼拼), which was stuck on the brink of bankruptcy. Facing a stiffer challenge, Nice Tuan announced a merger with Niwonin (the third largest community group buying company) in August 2019, marking the first case of the merger in this sector. After this merger, the monthly GMV of Nice Tuan surged to CNY 500 million. It has since claimed territory in more than 50 cities in China and become more competitive than five months before. What Nice Tuan does to differentiate itself from competitors may lie in two key details.  First is that it creatively combines an efficient three-level distribution channel that significantly lowers the delivery cost, which is crucial in order fulfilment and affects profitability. Second is that it values the influence of community KOLs more than others. These play an important role in building trust in community networks and maintaining a higher retention rate among community customers.

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Dec 27, 2019 04:28 pm ·

PUPUMALL Raises USD 100 Million in the Competitive Fresh Grocery Market

The front warehouse fresh grocery brand PUPUMALL secured a new round of funding on December 26, 2019. According to 360kuai.com, the funding amount was USD 100 million. The company has already received USD 30 million. The new funds will help in supply chain construction in southeast China. Early last March, the company announced its series B1 funding round of USD 55 million. The new round is the second investment injected in PUPUMALL this year. Founded in 2016, PUPUMALL is an Internet-based shopping platform. While fresh groceries are its primary products, it also provides daily necessities, counting over 3,600 SKUs. The company guarantees a 30 minute-delivery for customers within a 1.5 kilometers range of its front warehouses. At present, the major business battlefield of PUPUMALL covers Fujian, with employees reaching 10,000. The Shenzhen market expansion was launched in 2019; a person familiar with the matter said that the company plans to enter Guangzhou in March 2020 and will expand in the eastern, central and western regions. However, the northern China market will not be considered for the time being. "The founder of the company, Chen Xingwen (陈兴文), has positioned PUPU as a tech company. The move to enter Shenzhen also shows how much he values its strong technology atmosphere and talent supply," one of PUPU’s suppliers said. Fujian’s PUPUMALL, Beijing’s Miss Fresh, and Shanghai’s Dingdong Maicai have gone through a rapid roll-out in the past two years. Their common label is the ‘front warehouse’ model, along with the common promise of ‘delivery within 30 minutes.’ Due to its rent and delivery costs, this model is generally regarded as a heavy capital investment. Therefore, the competition now under the influence of a capital spree has largely been played out between startups operating on a fast-scaling speed and backed by deep-pocket investors such as Sequoia China, Capital Today, and Tiger Fund and Meituan. Houyi (侯毅), founder and CEO of another giant player in the fresh grocery market – Freshippo, under Alibaba – also expressed concerns over the front warehouse model in a public speech recently. He stated that the customer unit price, high loss rate and the razor-thin gross profit are the problems to overcome. He even admitted that Hema Xiaozhan, the front warehouse trial under Freshippo, is still facing these unsolved issues. However, this does not mean that Freshippo will abandon the front warehouse business. Hou said that the company would continue to test the front position and see if there is any possibility for optimization. At present, Freshippo has invested 80 front warehouses in five cities across the country. Wang Jun (王珺), CFO of Miss Fresh, also made statements about the difficulties in lowering customers acquiring cost, rent and labor cost to make a profit. As the leading player, Miss Fresh can deliver 80 online orders per day, four times than that of traditional logistics delivery efficiency. The algorithm-based operation and order volume has helped the company approach profit. Currently, 10% of Miss Fresh’s front warehouses have realized profit and the company expects to pass the break-even point next year. Other players are still striving and try to approach this seemingly bright future, but will it be the case for them may still need to wait and see.

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