Sales of Roses for Valentine's Day Jump 20-fold for Missfresh as China's E-commerce Flower Market Booms
On February 14, 2022, Missfresh reported a significant rise in flower sales, with Valentine's Day rose purchases increasing by 20-fold. The e-commerce flower market in China has grown substantially, from RMB 23.55 billion in 2017 to RMB 72.06 billion in 2020, with a CAGR of 32.26%. Missfresh has expanded its flower offerings to over 200 SKUs, addressing supply chain challenges and achieving a gross profit margin of 26% on flowers. A 40% repurchase rate among members highlights the success of Missfresh's flower business, which is integral to its revenue growth and product strategy.
- Valentine's Day flower sales increased by five-fold, with rose purchases up 20-fold.
- Missfresh's flower offerings expanded to over 200 SKUs since April 2021.
- Gross profit margin for flowers is 26%, exceeding platform average.
- 40% repurchase rate among membership users indicates strong customer retention.
- Units per transaction including flowers are 25% higher than overall platform average.
- None.
BEIJING, Feb. 14, 2022 /PRNewswire/ -- Valentine's Day flower sales increased by five-fold, with purchases of roses increasing by 20-fold, on Missfresh's on-demand online retail platform as more and more consumers across China choose e-commerce to meet their daily needs. Missfresh Limited ("Missfresh" or the "Company") (NASDAQ: MF), a pioneer in China's neighborhood retail industry, has stepped up to meet the demand among high-value consumers for products such as flowers, with
According to iiMedia's data from 2017 to 2020, China's e-commerce flower market grew from RMB 23.55 billion (USD 3.7 billion) to RMB 72.06 billion (USD 11.33 billion), with a compound annual growth rate of
Buying flowers is increasingly a routine part of young consumers' regular grocery purchases as they pursue a higher quality of life. To meet this growing demand as it becomes a daily essential among China's young consumers, Missfresh has upgraded its flower offerings to more than 200 SKUs since its flower business was launched in April 2021. "In the past, flowers were only given as gifts, but now they are part of daily life," said Bo Qi, who takes charge of Missfresh's fresh flower business.
Missfresh has also had to solve supply chain challenges that come with the flower business. "Flowers are fragile, have a short shelf life, place high demands on transportation, and have low levels of standardization. The pain point in the flower business lies in the supply chain and cold chain transportation," shared Bo Qi.
The company has increased the scale of its direct procurement from Yunnan, Liaoning, and more locations to meet customer demand, while also improving its supply chain and logistical links as well as shortening transport time. These improvements not only enhance the quality of Missfresh's flowers, but also optimize procurement costs. At present, the gross profit margin of Missfresh's flowers is
Smart supply chain capabilities allow Missfresh to accurately predict the sales of flowers over a certain period of time, and thus accurately determine upstream orders and precise replenishment of its Distributed Mini Warehouses (DMWs) on a daily basis. Together with Missfresh's advanced cold chain transportation and temperature control, these capabilities further reduce the loss of flowers, ensure product quality, and improve the consumers' flower shopping experience. Among Missfresh membership users, the repurchase rate of flowers has reached
Industry insiders have revealed that for Missfresh, the growth of its flower business is an important means to continuously innovate its business model through its mature DMW system, focus on high-value users, optimize its product structure, and increase revenue. Missfresh's sales data shows that the units per transaction that includes flowers is
About Missfresh Limited
Missfresh Limited is an innovator and leader in China's neighborhood retail industry. The Company invented the Distributed Mini Warehouse (DMW) model to operate an integrated online-and-offline on-demand retail business focusing 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 purchase quality groceries at their fingertips and have the finest products delivered to their doorstep in 36 minutes, on average.
Leveraging its core capabilities, Missfresh launched an intelligent fresh market business in the second half of 2020. This innovative business model is dedicated to standardizing and transforming fresh markets into smart fresh malls. Missfresh has also built up a full stack of proprietary technologies that empower a wide range of participants in the neighborhood retail business, such as supermarkets, fresh markets and local retailers, to jumpstart and efficiently operate their businesses digitally.
For more information, please visit: http://ir.Missfresh.cn.
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SOURCE MissFresh
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