#Laogao E-commerce Newsletter#[November 18 E-commerce Evening News]

Evening News: It is reported that the GMV of Douyin Life Service exceeds the annual target, with a monthly GMV exceeding 10 billion; JD.com's 2022 autumn new product report: More than 60% of users "buy directly on JD" new products; Citi: Maintain Alibaba's "buy" rating target price to HK$139; Target's revenue in the third quarter was US$26.5 billion; Qiantang cross-border e-commerce companies have a total of 690...

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E-commerce newsletter

1. JD 2022 Autumn New Product Report: More than 60% of users "buy directly on JD" new products

On November 18, on the occasion of the 2022 JD.com 11.11 Global Love Season, the JD Consumer and Industrial Development Institute has conducted research on consumer behavior in the past three years and combined with JD.com's sales, and has interpreted and analyzed the new product market this year and drawn the following conclusions. The market demand for new products is still expanding, and 79% of consumers pay attention to new products and may even immediately purchase them. The proportion of JD's new product transaction volume continues to increase. The market has returned rationally, "Internet celebrity marketing routines" have subsided the fever, and service guarantee has become the most important consideration except for price; "reality" has become the first choice, and 65% of users "buy new products directly on JD.com". (Jingmai Business Center)

2. News says that the GMV of Douyin Life Service exceeds the annual target, with a monthly GMV exceeding 10 billion.

On November 18, 36Kr learned from multiple independent sources that after entering the second half of the year, the GMV of Douyin Life Service continued to maintain rapid growth. By September, the monthly GMV had exceeded 8 billion, and in October it exceeded 10 billion, setting a new high. A person familiar with the matter revealed that Douyin Life Service sets a target every two months, with the original total GMV target in September and October being 25 billion+ billion. This number has exceeded the total GMV of life services in the first half of the year, but due to the impact of the short-term epidemic, it finally completed nearly 20 billion. According to the latest data obtained by 36Kr, live streaming accounts for 35% of its GMV contribution, and this goal has been initially achieved. (36Kr)

3. Macquarie: Reduced Alibaba's target price to "outperform the market" rating to HK$134.6

The report said that the company's second quarter performance was mixed in the end of September, and its core business revenue was weak, but adjusted EBITA was 16% better than market expectations. The bank believes that strong profit performance reflects the effectiveness of the cost control strategy. The bank pointed out that after the adjustment of the company's quarter ended at the end of September, China's commercial EBITA achieved positive growth, 5 percentage points higher than market expectations, mainly due to the significant reduction in losses in various businesses such as Taote, Taocai and Hema Fresh. The bank expects its adjusted EBITA to grow by 8% year-on-year to 48.6 billion yuan in the third quarter at the end of December. (Zhitong Finance)

Internet news

4. Citigroup: Maintain Alibaba's "buy" rating target price drops to HK$139

On November 18, Citi released a research report saying that it maintained Alibaba's "buy" rating, but lowered its revenue and non-GAAP net profit forecast for 2023 by 3.1%/8.9%, and its target price was lowered from HK$141 to HK$139. The bank said that Alibaba's second-quarter performance in fiscal 2023 was in line with expectations, with overall revenue of 207.2 billion yuan, slightly lower than market expectations, but basically consistent with the bank's forecast. It was also pointed out that the company's adjusted EBITA and China Commercial EBITA both exceeded the bank and the market's general expectations, mainly due to the effective reduction in losses in most business departments and the reduction in spending on new retail plans in China's retail industry. (Zhitong Finance)

5. Cainiao reached digital cooperation with Huichuan Group, a supplier of new energy powertrain system

On November 18, Cainiao recently reached a cooperation agreement with Huichuan United Power, and the two parties will work together to carry out in-depth cooperation in the field of smart logistics in the new energy vehicle industry chain. (China.com Technology)

6. Huolala affiliated company was fined for transporting dangerous goods without obtaining a transportation license

The penalty information shows that as of now, the company has been punished for a total of 430,000 yuan. Information shows that Shenzhen Yishi Huolala Technology Co., Ltd. was established in February 2015. The legal representative is Deng Kangqiao, with a registered capital of RMB 100 million. The business scope includes operating express business and labor dispatch. (E-commerce News)

7. Yanjing Beer: Double 11 event is 28 hours, and the GMV of e-commerce omni-channel increased by 100% year-on-year

On November 18, Yanjing Beer said in a survey today that during the 2022 Double 11 promotion, Yanjing Beer e-commerce channels grew rapidly across the board, and the industry ranking reached a new high. Multi-platform growth rate led the industry, and the leading brands maintained a high growth rate, reflecting the strong vitality and growth of Yanjing Beer brands. The Double 11 event was 28 hours, with the GMV of e-commerce omni-channel increased by 100% year-on-year, sales increased by 80% year-on-year, and store visitors increased by 115% year-on-year. (E-commerce News)

Cross-border newsletter

8. Qiantang cross-border e-commerce companies have a total of 690

Up to now, the cumulative import amount of cross-border e-commerce in Qiantang District has reached 71.3 billion yuan, the cumulative export amount of cross-border e-commerce has reached 36.9 billion yuan, the cumulative number of cross-border e-commerce market entities has reached 690, the investment amount of cross-border e-commerce is 126 million yuan, and the number of cross-border e-commerce exports has opened overseas stores. (Hangzhou Daily)

9. SHEIN opens Japan's first long-term physical store in Harajuku, Tokyo

On November 18, China's cross-border fast fashion platform SHEIN recently opened a store for display and try-on in Harajuku, Tokyo, Japan. This is the first long-term physical store opened by SHEIN in Japan. It only displays and tries clothes in the store and does not sell them directly. The physical store has three fitting rooms decorated with the theme of "Harajuku" and other items, and also has spaces for taking photos with display bags or small accessories. In addition to allowing customers to try out products, they are also encouraged to take photos and upload them to social networking sites to increase the brand's popularity in Japan. (E-commerce News)

10. Target's third-quarter revenue was US$26.5 billion

On November 18, Minneapolis-based retailer Target recently announced its financial results for the third quarter of 2022. Data showed that Target same-store sales increased by 2.7% in the third quarter, up from 12.7% last year. During the reporting period, Target physical stores saw comparable sales increase by 3.2%, and digital stores saw comparable sales increase by 0.3%. During the reporting period, the company's total revenue was US$26.5 billion, an increase of 3.4% over last year, total sales increased by 3.3% and other revenue increased by 9.5%. Operating margin in the third quarter of 2022 was 3.9%, a significant improvement from the second quarter, but far below expectations. Gross profit margin in the third quarter was 24.7%, compared with 28.0% in the same period in 2021. (E-commerce News)