China's E-commerce Players to Compete in 618 Shopping Festival
China's largest mid-year shopping festival, 618 Shopping Festival, is fast approaching. The festival, so named "618" because of the date of June 18, usually kicks off in late May. U.S. tech giant Apple has sold over $70 million discounted products within the first five hours with China's live-streaming e-commerce platform during the midyear shopping festival.
Two of the major competitions featuring China's e-commerce platforms are Double 11 Shopping Festival and 618 Shopping Festival.
One company, e-commerce provider Baozun Inc. (Nasdaq: BZUN) shifted higher on Tuesday morning as the company posted strong financial results in the first quarter.
The Shanghai-based company said revenue in the first quarter reached $215.2 million, up 18% year-over-year, which beat its high-end estimate of 13%. Net income declined to $233,000, or 1 cent per share, in the three months through March, down 95% from one year ago.
Baozun reported that its total gross merchandise volume, a measure of total sales transacted through its platforms, soared 18% year-over-year in the first quarter, amounting to $1.32 billion. The company also added 39 brand partners to 239 in the past one year.
"As China's economic recovery strengthens in the second quarter, we believe the adoption of online retail will continue to accelerate going forward as brand partners increasingly prioritize their digital go-to-market strategies," Vincent Qiu, the chief executive officer of Baozun, said in the statement.
The company raised its revenue guidance for the second quarter from the current level by 20% to 23%, eying revenue of 2.05 billion yuan to 2.1 billion yuan($293 million to $300 million).
"Since March, China's e-commerce sector has begun steadily recovering while the logistics industry has normalized, we are confident that we remain on track with our high-quality growth strategy," Robin Lu, the chief financial officer of Baozun, said in the statement.
China's top three online retailers posted strong quarterly results despite the Covid-19 outbreak in the first quarter.
The giant Alibaba Group (NYSE: BABA; HKEX: 9988) continued to expand, reporting $16.14 billion in revenue in the first quarter, up 22% year-over-year. The company gained over $1 trillion GMV, which one-sixth of all of the retail sales in the country.
JD.com Inc. (Nasdaq: JD)'s revenues reached $20.6 billion in the first quarter, up 21% year-over-year. Pinduoduo Inc. (Nasdaq: PDD) posted its revenue in the first quarter of $923.8 million with a 44% year-over-year growth rate.
Online discount retailer Vipshop Holdings Ltd. (NYSE: VIPS) said its revenue decreased to $2.7 billion in the first quarter, down 12% year-over-year.
Since 2020, the stock price of Pinduoduo soared 82%, JD.com gained 57%, Vipshop up 22%, Alibaba jumped 4%, Baoozun climbed 1%.
Shares in Baozun were trading at $32.74 per share, up 12% midday Tuesday.