Valentine's Day flower sales increased strongly, 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, 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 30% of Missfresh membership users in Beijing and Shanghai purchasing fresh cut flowers in the past month.
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 26%, which is higher than the overall average for the platform.
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