Baozun Emerges from E-Commerce Shadows with Gap China Purchase

The provider of e-commerce tools with close ties to Alibaba hopes its acquisition of the U.S. retailing giant’s China operations can revive its stalling growth Key Takeaways: Baozun’s newly purchased Gap Greater China operation will become the cornerstone for its new brand management unit The Alibaba-backed company is looking for new growth venues as its core business as an e-commerce tools provider stalls By Shirley Lau Baozun Inc. (BZUN.US; 9991.HK), a sort of “Shopify of China,” raised eyebrows earlier this month when it announced it would acquire U.S. clothing retailer…

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Could ‘Double 11’ Festival Players Post Their First-Ever Sales Declines?

A combination of macro headwinds and cutthroat competition could make it difficult to achieve another year of substantial growth By Chan Ka Po Now in its 14th year, the Nov. 11 online shopping extravaganza known as “Double 11,” or “Single’s Day,” has always been regarded as a showcase of Chinese consumers’ buying power. This year’s event will undoubtedly be overshadowed by a number of macro challenges as organizers try to post more growth. So, are there early signs that consumer enthusiasm will continue to be high, or will it show…

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Pinduoduo Finds Early Success in U.S. E-Commerce. Now Comes the Hard Part

The Chinese company’s Temu was among the top 10 iPhone and Android e-commerce apps in the U.S. in mid-October following its launch less than two months earlier Key Takeaways: Nearly two months after its launch, Pinduoduo’s cross-border e-commerce Temu app is among the top U.S. e-commerce apps based on new download rankings Despite its early success, the app will face a series of challenges in its target U.S. market, including cutthroat competition and high marketing expenses By Trevor Mo Chinese internet giants have been busy trying to expand overseas lately…

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FAST NEWS: Weimob Says Business ‘Recovered Rapidly’ After Shanghai Lockdown

The latest: E-commerce services provider Weimob Inc. (2013.HK) said late on Thursday that its business “recovered rapidly” following the easing of the pandemic in Shanghai, where the company is based. It added that its overall operation is performing well. Looking Up: The company also pointed out its shareholders authorized a repurchase agreement at its latest annual general meeting at the end of June, allowing the company to purchase up to 10% of its issued shares to support the stock. Take Note: Weimob issued its announcement in response to recent “unusual…

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FAST NEWS: Vipshop’s Profit Rises on Cost Cuts, Even as Revenue Falls

The latest: E-commerce company Vipshop Holdings Ltd. (VIPS.US) on Friday reported its revenue fell 17% year-on-year to 24.5 billion yuan ($3.6 billion) in the second quarter, while its profit rose 17% to 1.3 billion yuan. Looking Up: The company cut its operating costs by 19% during the quarter to 3.9 billion yuan. As a result, its gross margin improved to 20.5% from 20.1% a year earlier, which was a big factor behind the profit improvement. Take Note: The company blamed the revenue decline on weak consumer demand due to a…

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No Good Times Here, as Gome Slashes ‘FUN’ E-Commerce Unit

Former retailing giant makes massive cuts at its recently launched service combining online shopping with social networking and entertainment Key Takeaways: Gome is scaling back its e-commerce push that was part of a drive to regain its former glory, making massive layoffs at its FUN online unit.  Company’s revenues stagnated last year as its transition to e-commerce stalled, similar to the fate of other older brick-and-mortar retailers like its former rival Suning By Trevor Mo In early 2021, former retailing magnate Huang Guangyu was unequivocal when asked about his next…

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Nebula Brands Emerges as Star to Watch in Global Constellation of Amazon Aggregators

China-based buyer of Amazon brands on Amazon marketplaces announces major new funding, with more expected in the next three months Key Takeaways: Nebula Brands has announced a major new fundraising, bolstering its place as China’s top player in an emerging global group of Amazon aggregators Company has purchased a number of Chinese brands in Amazon marketplaces since last year, but is likely to sharply accelerate the pace in the run-up to a potential IPO as early as 2025 By Doug Young China may be the “workshop to the world,” but…

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FAST NEWS: Maturing Pinduoduo Posts Single-Digit Revenue, User Growth

The latest: E-commerce company Pinduoduo Inc. (PDD.US) said on Friday its revenue rose 7% year-on-year to 23.8 billion yuan ($3.6 billion) in the first quarter. The company, which specializes in sales to China’s smaller cities, reported a first-quarter profit of 2.6 billion yuan, compared with a 2.9 billion yuan loss a year earlier. Looking Up: Excluding merchandise sales, which fell 99% during the quarter, the company’s revenue rose 39% in the first quarter to 23.7 billion yuan. Take Note: The company’s average monthly active users (MAUs) rose just 4% year-on-year to 751.3 million during the…

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Vipshop Takes Defensive Posture as Headwinds Mount

Discount e-commerce veteran has launched a $1 billion share buyback and slashed its marketing spending as it forecast its revenue would decline up to 25% in the second quarter Key Takeaways: Vipshop’s revenue fell 11% in the first quarter, and it forecast the decline would accelerate to as much as 25% in the current quarter Company last month authorized a new $1 billion share repurchase program after buying back $500 million of shares over the previous year By Doug Young Prepare for some turbulence. That’s the message coming from discount…

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FAST NEWS: JD.com Swings to Red as Revenue Growth Slows

The latest: E-commerce giant JD.com Inc. (JD.US; 9618.HK) reported a net loss of 3 billion yuan ($4.44 billion) for the first quarter, reversing a 3.6 billion yuan profit in the same period a year earlier. The company’s revenue rose 18 % to 239.7 billion yuan for the period, according to its announcement on Tuesday. Looking up: The company’s non-GAAP net income for the period was 4 billion yuan, flat compared to the same period last year and better than the 24% to 31% decline expected by major investment banks, mainly due to revenue growth in its logistics and retail…

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