Meituan’s Strategic Moves Amid Market Dynamics

In the ever-evolving landscape of the consumer discretionary sector, Meituan, a prominent player in the Internet & Catalog Retail industry, continues to make strategic moves to adapt and thrive. As of June 23, 2025, the company, listed on the Hong Kong Stock Exchange, has been navigating through a series of developments that highlight its resilience and adaptability.

Service Transformation in Shanghai

On June 23, Meituan announced the suspension of its sales in certain regions, specifically citing the offline transformation and upgrade of services in Shanghai. This move is part of Meituan Select’s broader strategy to enhance its offerings and streamline operations. While this may cause temporary disruptions, it underscores Meituan’s commitment to improving customer experience and service quality.

Stock Performance and Market Sentiment

Despite the operational changes, Meituan’s stock has shown positive momentum. On the same day, the company’s shares gained 2.60%, trading at 14.52 euros. This uptick reflects investor confidence in Meituan’s long-term growth prospects, even as it undertakes significant internal transformations.

Expansion of Instant Retail Business

In a strategic expansion, Meituan has fully committed to growing its instant retail business. Building on previous explorations, the company aims to enhance its new retail model through brand upgrades. The Meituan Instashopping business is set to expand its reach to all Tier 1 and Tier 2 cities, marking a significant step in its retail strategy.

Global Expansion Amidst Domestic Challenges

Facing slowing domestic demand and hurdles in the US and Europe, Meituan, along with other Chinese companies like Temu and Shein, is eyeing Brazil as a new market. This expansion strategy is a response to the challenges posed by tariffs and scrutiny in Western markets, highlighting Meituan’s proactive approach to global growth.

Competitive Landscape in China

Back home, Meituan is navigating a competitive landscape, particularly in the food-delivery sector. JD.com’s aggressive tactics, including viral stunts and deep discounts, have prompted Meituan and Alibaba’s Ele.me to respond strategically. This competitive environment underscores the dynamic nature of China’s e-commerce and delivery markets.

Broader Market Context

In the broader market context, Meituan’s activities are part of a larger narrative involving key players like Tencent. Prosus, Tencent’s largest shareholder, reported increased revenue and profits, driven by growth in its e-commerce ventures. This reflects the overall positive trajectory of the e-commerce sector in which Meituan operates.

As Meituan continues to adapt and expand, its strategic initiatives reflect a company poised to leverage both domestic and international opportunities. With a focus on enhancing service quality and expanding its retail footprint, Meituan is well-positioned to navigate the complexities of the global market landscape.