BOCOMI: Fierce Price Competition in Chinese E-commerce; BABA & JD Expected to Resume Growth
Market Growth: Between May 20 and June 3, Chinese e-commerce platforms saw double-digit YoY growth in daily active users.
Simplified Sales: Platforms simplified 618 shopping festival sales, eliminating pre-sale segments and offering early discounts, boosting GMV in May.
Simplified Sales: Platforms simplified 618 shopping festival sales, eliminating pre-sale segments and offering early discounts, boosting GMV in May.
Platform Performance:
Taobao Tmall ( $BABA-SW(09988.HK$ ): 370,000 small and medium-sized merchants more than doubled GMV YoY on the first day.
$JD-SW(09618.HK$ : Achieved over 5x YoY GMV growth for 10,000 brands on the first day.
$PDD Holdings(PDD.US$ : Merchants in the "10 billion subsidy plan" increased by over 90% YoY in the first week.
$JD-SW(09618.HK$ : Achieved over 5x YoY GMV growth for 10,000 brands on the first day.
$PDD Holdings(PDD.US$ : Merchants in the "10 billion subsidy plan" increased by over 90% YoY in the first week.
Outlook:
Despite fierce price competition, PDD and Douyin are expected to gain market share. Alibaba and JD are predicted to show recovery, with JD likely outperforming total retail sales growth and Alibaba returning to positive growth.
Ratings: BOCOMI rated Alibaba and JD as Buy, with target prices of $111 and $40 respectively.
Ratings: BOCOMI rated Alibaba and JD as Buy, with target prices of $111 and $40 respectively.
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