Three Highs Three Lows Strategy

“In 2012, after two years of exploration, Wang Xing proposed the “three highs and three lows” theory of group buying, with a more independent understanding of group buying that even diverged from Groupon, the initial mentor of Meituan. Groupon is a high-margin, high-cost company, whereas Meituan is positioned to provide high-quality, low-cost services to consumers; for this, they achieve high efficiency and low cost; high technology and low margin.”