Missfresh Achieves Impressive Growth in Ready Meal Sales and Expands Higher-Margin “3R” Product Categories

BEIJING, January 24, 2022 /PRNewswire/ — missfresh limited (“Missfresh” or the “Company”) (NASDAQ: MF), a pioneer in China convenience retail industry, today announced its exceptional growth in sales of ready-to-cook, ready-to-heat and ready-to-eat products (known as 3R products) and plans to further expand this category. In 2021, sales of 3R products on the Missfresh platform increased by more than 300% compared to 2020, with the gross margin of these products being at least 15% higher than the platform average.

By the end of 2021, more than 40% of Missfresh customers had purchased 3R products, and the redemption rate for paying users was close to 70%. Strong sales in this category reflect consumers’ growing appetite for ready meals and a noticeable trend in food consumption in China for 2022.

M/s. Catherine ChenChief Financial Officer of Missfresh, said: “As consumer awareness of the product category and the popularity of ready meals has skyrocketed over the past two years, Missfresh has invested in developing its own in-house product brands. 3R. We currently offer over 800 SKUs of 3R Meals, including over 100 SKUs from Missfresh’s Premium Ready Meal line. Missfresh plans to continue to expand its ready meals offering to include one-bowl meals for solo diners, hot meals and home-cooked meals We expect 2022 sales growth to exceed the numbers of 2021.

“We see ready-made food offerings not only as a way to meet the trend of ‘consumption upgrading’ (the growing demand for high-quality goods and services) among users of our platform, but also as an important category to optimize our gross margins and improve We believe ready meals are becoming an important driver of operational efficiency in the business,” continued Catherine.

Ahead of the Lunar New Year celebrations in February, Missfresh stepped up efforts to launch ready-meal gift boxes on its platforms (the Missfresh app and the WeChat mini-program). The Lunar New Year package selections include a Beijing-style cuisine eight-dish gift set and a Xibei restaurant chain’s collection of nine famous dishes, both ranked among the top four products in gift set sales.

According to Askci Consulting forecasts, based on an estimated compound annual growth rate of 20%, China the ready meals market will exceed 1 trillion RMB ($128 billion) in the next six to seven years. In the long term, the magnitude of China the convenience food industry is expected to reach 3 trillion RMB ($473 billion). Lured by the upcoming “trillion dollar food market”, many food chains and retail companies have decided to develop their own 3R product businesses.

Missfresh has taken a two-pronged approach to the convenience food market. Firstly, by cooperating with well-known local brands such as Ziguangyuan, Guangzhou Restaurant, Tongqinglou Catering and Sunya Food, the company can quickly adapt to changing market demands and develop the convenience food business on a targeted regional basis. .

Second, Missfresh has enriched its own ready meals matrix by continuously improving its supply chain. In November 2021the Company launched its “Missfresh Premium Dishes” in-house brand of premium ready mealswhich quickly took off with platform users and ranked among the top three ready meals in sales.

In addition, Missfresh has adopted the OEM model for the production and processing of its own brands of ready meals. M/s. Tingting Wumanager of Missfresh’s frozen food division, explained, “While the company’s convenience food business is still in its infancy, the OEM model is helping to rapidly grow the category, allowing Missfresh to take advantage of the expertise and experience of several operators by partnering with leading suppliers in various distinct sub-categories of ready meals for the specialized and customized production of these products. »

About Missfresh Limited

Missfresh Limited is an innovator and leader in China local retail. 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 (FMCG). With the “Missfresh” mobile app and Mini Program integrated with third-party social platforms, consumers can easily buy quality groceries at their fingertips and have the best products delivered to their doorstep in 36 minutes, by medium.

Leveraging its core capabilities, 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 smart fresh shopping malls. Missfresh has also implemented a full stack of proprietary technologies that enable a wide range of neighborhood retail participants, such as supermarkets, fresh produce markets and local retailers, to effectively start and operate their businesses digitally.

For more information, please visit: http://ir.Missfresh.cn.

SOURCE MissFresh

Comments are closed.