Bestcake

About Bestcake

Shanghai Shou Le E-Commerce Co., Ltd., operating the online cake brand Bestcake (贝思客), was established on July 13, 2011, by founder Wu Zifeng. Initially registered as Shanghai Shou Le Digital Technology Co., Ltd. with a capital of 100,000 yuan, the company carved a niche in the online-to-offline (O2O) baking sector. Wu Zifeng attributed the company's early success to its application of an internet-centric business philosophy, focusing on capturing online traffic and user conversion in a market where traditional bakeries faced declining profit margins.

The company's primary business is the production and sale of baked goods, particularly cakes and desserts, facilitated through its e-commerce platform. Bestcake's model revolves around online ordering with delivery services, offering customers various payment options, including online payment and cash on delivery. This O2O approach allowed the company to expand its footprint, and by 2016, it had established branches in several major Chinese cities, including Shanghai, Hangzhou, and Nanjing, eventually reaching 14 cities. The company gained significant market visibility, partly by engaging famous actress Tang嫣 as a brand ambassador, and was once dubbed the "first O2O bakery stock" after listing on the New Third Board in 2016.

The business serves individual consumers looking to purchase cakes for personal consumption or gifting purposes. Revenue is generated directly from the sale of these food products through its online channels. In 2020, the company reported revenues of 110 million yuan for the first half of the year. However, by late 2020 and into 2021, the company faced significant operational challenges, including reports of unredeemable prepaid cards and cancelled orders, leading to its stock facing a delisting risk.