Chinese enterprises' logic for going global has changed! It's no longer just about cars and phones, even food delivery is expanding overseas. Recently, I saw a shocking news: Meituan, which was once constantly criticized for "intense competition," has now gone abroad to conquer the market!
Over the past year, the domestic food delivery battle has been fierce, with subsidies, low prices, and burning money, almost all of which have short-term effects. For example, Taobao Flash Sales burned money to grab the market, pulling in merchants to bear the brunt, ultimately making the merchants and couriers suffer. Consumers took a few freebies and then left, leaving only a mess behind.
National authorities have repeatedly mentioned this issue, because such low-level internal competition not only failed to bring new consumption, but also caused the entire industry to be in a false boom. However, while other companies were locked in price wars, Meituan chose another path: going global. In the Middle East, Meituan's overseas food delivery app Keeta has been "dominating." Within a year in Saudi Arabia, it attracted 15,000 restaurants to join, and its market share climbed into the top three; within less than a year in Kuwait, it topped the download charts on App Store and Google Play.
I heard from a friend in the Middle East that huge Keeta billboards are everywhere on the streets, and even black guys are holding signs to do street promotions, the scene is exactly like China's "street promotion army" back then. Morgan Stanley's research report predicts that by 2028, Keeta's market share could reach 20%, earning at least $6 billion in the Middle East, approximately 43 billion RMB.
This money is not used by Meituan to continue price wars, but instead to boost support for merchants and couriers. They canceled the late fee for couriers, introduced a "Wait for Light" reward, and merchants also received assistance funds. This means that Meituan has built a moat strategy both domestically and internationally: earning money overseas and rooting itself domestically. While others compete on price, it competes on ecosystem and barriers.
Previously, Meituan was often criticized, but now looking at it, it is indeed moving towards a more positive direction. It also gives more Chinese enterprises an insight: getting out of the intense competition and going global is the real future.
Original article: www.toutiao.com/article/1843657441668227/
Statement: The article represents the personal views of the author.