BEIJING, February 14, 2022 /PRNewswire/ — Valentine’s Day flower sales increased five-fold, with purchases of roses on Missfresh’s on-demand online retail platform up 20-fold as more consumers access it China Choose e-commerce to meet their daily needs. Missfresh Limited (“Missfresh” or the “Company”) (NASDAQ: MF), a pioneer in of China Neighborhood retail has stepped up to meet high-value consumer demand for products such as flowers, with 30% of Missfresh members being users Beijing and shanghai Purchase of fresh cut flowers in the last month.
According to iiMedia’s data from 2017 to 2020, of China E-commerce flower market grew out 23.55 billion RMB ($3.7 billion) to 72.06 billion RMB ($11.33 billion) with a compound annual growth rate of 32.26%. Of course, flowers have now become an essential product category for Missfresh’s business model, allowing the company to increase sales during and outside of the holiday and festive seasons. In addition to roses on Valentine’s Day, sales of carnations on Mother’s Day, Christmas trees on Christmas and a range of New Year’s flowers during the Spring Festival all contributed to Missfresh’s sales.
Buying flowers is increasingly part of the daily grocery shopping routine of young consumers as they seek a better quality of life. To meet this growing demand as it becomes a daily must have of China young consumers, Missfresh has expanded its floral offering to more than 200 SKUs since the launch of the floral store April 2021. “In the past, flowers were only given as gifts, but now they are part of everyday life,” says Bo Qi, who runs Missfresh’s fresh flower business.
Missfresh also had to solve supply chain challenges that come with the flower business. “Flowers are fragile, have a short shelf life, have high demands on transportation, and have a low level of standardization. The pain point in the flower business is in the supply chain and cold chain transportation,” Bo Qi shared.
The company has increased the scope of its direct procurement Yunnan, Liaoningand more locations to meet customer demand while improving supply chain and logistical connections and reducing transportation time. These improvements not only improve the quality of Missfresh’s flowers, but also optimize procurement costs. Currently, Missfresh’s flowers gross margin is 26%, which is higher than the overall platform average.
Intelligent supply chain capabilities allow Missfresh to accurately predict flower sales over time, pinpointing upstream orders and accurate replenishment of its Distributed Mini Warehouses (DMWs) on a daily basis. Along with Missfresh’s advanced cold chain transportation and temperature control, these capabilities further reduce flower loss, ensure product quality and improve consumers’ flower shopping experience. Among Missfresh membership users, the flower repurchase rate has reached 40%.
Industry insiders have revealed that growing its flower business is an important means for Missfresh to continuously innovate its business model through its mature DMW system, focus on high-value users, optimize its product structure and increase sales. Missfresh’s sales data shows that the units per transaction that include flowers are 25% higher than the platform’s overall average.
About Missfresh Limited
Missfresh Limited is an innovator and leader in the field of China retail in the neighborhood. The company invented the Distributed Mini Warehouse (DMW) model to operate an integrated online and offline on-demand retail business focused on offering fresh produce and fast-moving consumer goods (FMCGs). Through the Missfresh mobile application and mini-program embedded in third-party social platforms, consumers can easily buy quality groceries at the touch of a button and have the best products delivered to their doorsteps in an average of 36 minutes.
Leveraging its core competencies, Missfresh launched a smart fresh market business in the second half of 2020. This innovative business model is dedicated to standardizing and transforming fresh markets into intelligent fresh food centers. Missfresh has also built a full stack of proprietary technologies that enable a wide range of neighborhood retail participants, such as supermarkets, fresh markets and local retailers, to start their businesses digitally and run them efficiently.
For more information, please visit: http://ir.missfresh.cn.