Insights from China: Meituan Starts Delivering Smartphones and Cosmetics on Its Platform following Covid-19

On the Meituan platform, consumers now can now purchase smartphones from Huawei in three Chinese cities and beauty products from Sephora in 16 Chinese cities. Nonfood delivery can be made within 30 minutes to an hour depending on location.

These offerings build on Meituan’s existing services in the physical goods category. In March 2020, the company partnered with 72 physical bookstores in Beijing to sell their products, waiving the fees for them to join the platform and reducing service fees to alleviate the burden on bookstores amid the coronavirus crisis.

By furthering its move to sell nonfood goods, Meituan recognizes that consumers are more likely to eat at home for the near future following the pandemic. Also, the wide range of offerings should boost demand for the platform’s services. It is a good time for the company to diversify its offerings as consumers spending priorities begin to settle to some normalcy, gradually return to purchasing discretionary goods.