3 Reasons This Chinese Grocery Company's Cutting-Edge Business Model Could Be a Winner
By building a network that ensures lightning-fast deliveries and other conveniences, Missfresh Limited (NASDAQ: MF) beat analysts' expectations with its third-quarter earnings report. The grocery chain, which currently has a $1.2 billion valuation, is expanding aggressively in its home country of China. While it's still generating net losses, various metrics are improving, and there are at least three reasons a bullish scenario could play out in the coming quarters and years.
Missfresh, a seller of fresh groceries and related consumer goods, is making a mix of digital and physical retail the centerpiece of its strategy, using what it calls a distributed mini warehouse (DMW) business model. Like a restaurant chain using "dark kitchens" with no retail restaurant counter or dine-in facilities to fulfill delivery orders in the immediate area, Missfresh's "dark stores" use a delivery-only model. Also dubbed micro fulfillment centers, the DMWs distribute grocery supplies across the 17 cities Missfresh operates in, enabling extremely fast delivery.
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Source Fool.com
