By Zhang Wenkui, Enterprise Research Institute, DRC

Research Report, No.377, 2021 (Total 6442) 2021-12-8

Abstract: The analysis of strengthening anti-monopoly, anti-unfair competition and preventing the disorderly capital expansion needs to be viewed and conducted case by case. Based on the development of the Internet and big data, emerging industries are featured by extremely active capital expansion and competitions in a new mode. Among them, new retail industries have caught people’s eye. In light of the fresh food retail business, the massive capital input has not only promoted the significant transformation and innovation of retail industry, but also give rise to malpractice such as selling goods at prices below the costs. As a result, a number of enterprises suffer from long-term losses. In contrast, capital-backed enterprises have become flagship businesses and gained higher value of assessment and some have even gone public. However, the massive capital input do not always lead to oligopolistic or monopolistic enterprises, and its impact on traditional physical stores so far are not that serous. The constant low-price competition needs to arouse general concern by the regulatory authorities, and more listing standards for such enterprises to go public need to be rolled out so as to better regulate their performance.

Keywords: competition, capital, fresh food retail business.