#Laogao E-commerce Newsletter# [October 31 E-commerce Morning Newsletter]

Morning News: Well-known investor Duan Yongping bought Tencent for the seventh time this year; Douyin e-commerce pre-sale report: product exposure increased by 2,000% year-on-year; Double 11 promotion of the same mobile phone in 4 days and 4 prices; Tmall responded that Double 11 will launch a new photo-taking function on November 1; Amazon will significantly slow down recruitment and reduce employees in the delivery and sorting network...

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E-commerce newsletter

1. Douyin e-commerce Double 11 pre-sale report: product exposure increased by 2,000% year-on-year

According to October 31, with the start of pre-sales on October 24, Douyin Double 11 Good Products Festival officially kicked off, and merchants entered a intensive sprint stage. According to the pre-sale report data of Douyin e-commerce, as of 24:00 on October 27, the exposure of pre-sale products increased by 447% compared with the same period last year; the exposure of pre-sale products in Douyin Mall increased by 2,000% compared with the same period last year; the exposure of pre-sale products searches increased by 630% compared with the same period last year. Among them, many of the products exploded at the beginning. The battle report shows that Perchoa's early C and late A combination of double anti-ruby essence, Redmi Redmi mobile phone K50 Supreme Edition, and TINECO intelligent floor scrubber Fuwan 2.0 were selected as the top 5 popular products pre-sale in Douyin Double 11 Good Products Festival. (Douyin e-commerce marketing observation)

2. Double 11 promotional mobile phones with 4 prices in 4 days

According to the Shanghai Consumer Protection Committee on October 31, news of the "Double 11" promotion "first price increases and then lower prices" and even "direct price increases" have been heard recently. Some netizens intercepted the prices of OPPO Reno 8 mobile phones on a certain shopping platform, showing the same phone "4 prices in 4 days". The activity price of a certain brand of stand-alone down jacket increased from 269 yuan to 330 yuan, and the page price increased to 399 yuan a few days later. In response, the Shanghai Municipal Supervision Bureau issued a message saying that it is recommended that consumers who encounter bad situations such as price fraud and induce consumption can retain more evidence and actively provide clues to law enforcement departments. (Sina Technology)

3. Tmall responds that Double 11 will launch a new photo-taking feature on November 1st

According to October 31, some netizens recently urged to update on Weibo: Are there any koi still available this Double Eleven this year? In response, Tmall responded: "I will have something new this year." It is reported that this year's new gameplay will be combined with Taobao's photo shooting function. Starting from the 1st, you can participate by just taking photos with Taobao. At the same time, the number of winners will be more. (Tech Planet)

4. Douyin Life Service Chengdu Helps Business and People-friendly Plan drives online sales of over 230 million yuan

On October 30, under the joint guidance of Chengdu Municipal Bureau of Commerce and other relevant departments, the "This is the Chengdu I Love" plan to help the people benefit the people was launched in Chengdu on September 26, initiated by Douyin Life Service and co-organized by ByteDance Public Welfare, and supported by the creative space. Over the past month, #This is My Love Chengdu topic has accumulated 460 million online exposures, received more than 14,000 short video submissions, helped more than 9,000 local large, medium and small businesses in Chengdu, launched more than 45,000 special products, and total sales of goods exceeded 230 million. A total of 9,000 merchants participated in this event, and 45,000 exclusive packages for "Love Chengdu" were launched. (Tik Tok Life Service Business Observation)

Internet news

5. Boji Investment increased its holdings in Pinduoduo, Alibaba and other stocks in the third quarter

On October 31, the famous European long-term investment institution Boji Investment recently announced its holdings at the end of the third quarter of 2022. In the third quarter, Boji Investment increased its holdings in stocks such as Pinduoduo, Tencent Music, NIO, and Alibaba, reduced its holdings in stocks such as Tesla and Ideal Auto, and cleared its holdings in stocks such as JD.com and Bilibili. According to whalewisdom data, as of the end of the third quarter of 2022, the U.S. stock portfolio size of Bokee invested was US$96.991 billion. (Sina Technology)

6. Gome Retail: It is expected that operating losses in 2022 will increase by 35% to 65% year-on-year compared with last year

On October 30, Gome Retail issued a supplementary announcement on the profit warning on the Hong Kong Stock Exchange, and expected that the operating losses attributable to parent company owners in 2022 will increase between 35% and 65% compared with the same period last year. The announcement shows that as of September 30, 2022, Gome Retail’s overdue loans were approximately RMB 3 billion. Previously, Gome Retail's profit warning announcement stated that according to the preliminary review of the recent group management accounts, the cumulative sales revenue in the first three quarters of this year will decline by about 55% to 60% compared with the same period last year. (Gome Retail Official)

7. Shentong's net profit attributable to shareholders in the third quarter was RMB 22.3447 million, up 124.39% year-on-year

According to October 30, Shentong released its third quarter financial report for 2022. Financial report data shows that Shentong's revenue in the first three quarters was 24.077 billion yuan, a year-on-year increase of 42.38%; net profit attributable to listed shareholders was 211 million yuan, a year-on-year increase of 188.68%; net cash flow generated by operating activities was 1.627 billion yuan, a year-on-year increase of 181.74%; basic earnings per share was 0.14 yuan per share, a year-on-year increase of 189.20%. In the third quarter, Shentong's revenue was 9.117 billion yuan, an increase of 54.72% over the same period last year, and its net profit attributable to listed shareholders increased by 124.39% year-on-year to 22.3447 million yuan. The per capita holdings were 32,000 shares, while the per capita holdings in the last period were 30,700 shares, a month-on-month change of 4.38%, and the average holdings of households tended to be concentrated. (Shentong Express official)

8. Well-known investor Duan Yongping bought Tencent for the seventh time this year

Since the beginning of this year, Duan Yongping has bought Tencent six times in February, March, April, August, October 13 and October 25 respectively. The previous highest buying price was the average purchase price of over US$50 in August last year. Currently, Tencent's ADR is only US$25.83, close to half of its initial buying stock price. It is worth mentioning that documents from Prosus, a Dutch subsidiary of Tencent’s largest shareholder, show that as of October 27, Prosus still held 2.6926 billion shares of Tencent shares, which is consistent with the number of shares held by Prosus on September 9 shown by the Hong Kong Stock Exchange’s disclosed documents. This means that Naspers stopped reducing their holdings in Tencent shares in more than a month from September 9 to October 27. (Snowball)

Cross-border information

9. Amazon will significantly slow down recruitment and reduce employees in delivery and sorting networks

According to media reports, Amazon is significantly slowing down the pace of recruitment across the company due to slowing consumer demand and rising operating costs, mainly by cutting employees in the delivery and sorting network. Currently, Amazon has a total of 1.54 million employees worldwide, up 5% from the same period last year. According to Amazon's latest financial report, in preparation for the peak season, the retail giant added 21,000 employees in the third quarter of 2022. In the third quarter of 2021, Amazon added 133,000 employees. In the third quarter of 2020, Amazon soared by 248,500 employees due to crazy expansion. (GeekWire)

10. Amazon: Vietnamese companies sold 10 million products through Amazon platform within one year

On October 30, Gijae Seong, head of Amazon Global Stores, announced at the Hanoi Cross-border E-commerce Week recently that from September 1, 2021 to August 31, 2022, Vietnamese companies sold 10 million products to customers around the world through the Amazon platform. Amazon Global Store Vietnam announced that building a global brand with products made in Vietnam is one of its main goals in 2023. It will urge Vietnamese producers and businesses to work with Amazon to protect brands through the Amazon Brand Registration Program and develop brands using Amazon tools. (BCG LAND)