Meituans Low-Price Strategy Fuels Growth Amid Chinas Economic Slowdown

Despite a slowing Chinese economy that has hurt its competitors, Meituan, a food delivery company, has seen significant share-price growth this year due to its strategy of focusing on lower prices. This strategy is evident in its successful Pin Hao Fan platform, which offers cheaper, group-based meal ordering. While this has led to impressive sales growth and record profits, some analysts question if this alone can counteract the broader economic downturn and growing competition in the long term. Meituan has also benefited from reduced competition, increased user and merchant numbers, and cost-saving measures. However, the question remains whether these positive factors, along with their expansion outside mainland China, will be enough to sustain their growth if consumer spending continues to weaken.