The growth rate of GMV has declined, and the potential impact of competition may be greater than the less likely TikTok current limiting measures

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According to the data, the average daily GMV in August reached 18 million yuan, down from that in June and July. In the first week of August, the ranking of Oriental Selection GMV slightly dropped to the second place. The growth of the number of new fans also declined. The average daily increase of fans in August was 34000 (compared with 85000 in July).

The company recently denied TikTok current limiting, but in the view of the China Merchants Securities (Hong Kong), the potential impact of competition may be greater than the less likely TikTok current limiting measures.

In addition, Yu Minhong, the chairman of the company, said that the profitability of Oriental Selection in the next five years was not a priority. The China Merchants Securities (Hong Kong) believes that this is related to the company's own brand research and development, marketing, talent introduction / incentive and other measures conducive to long-term sustainable growth.