Julie Lee

Equity Bottom-Up

<p style="text-align: justify;">The street has been focusing on the leading e-commerce players in 2020 due to surge in demand since the pandemic. E-commerce companies have spent huge efforts especially on online grocery shopping  due to its importance for customers, rapid growth on under-penetration, and high frequency of visits.  Strong growth of e-commerce has been well highlighted by the street, while  positive impact on FMCG has been less appreciated. FMCG companies such as <a href="https://www.smartkarma.com/entities/cj-cheiljedang-corp" target="_blank" data-smartkarma-citation="entities:1970:1" rel="noopener">CJ Cheiljedang (097950 KS)</a> will continue to benefit from reduced sales and marketing costs and can increase customer reach in other countries along with rising online grocery penetration.  We will assess if Korean F&amp;B companies can repeat the success story of Korean cosmetic companies had shown in 2014 and 2015 supported by rising e-commerce in China.   </p>

The street has been focusing on the leading e-commerce players in 2020 due to surge in demand since the pandemic. E-commerce companies have spent huge efforts especially on online grocery shopping  due to its importance for customers, rapid growth on under-penetration, and high frequency of visits.  Strong growth of e-commerce has been well highlighted by the street, while  positive impact on FMCG has been less appreciated. FMCG companies such as CJ Cheiljedang (097950 KS) will continue to benefit from reduced sales and marketing costs and can increase customer reach in other countries along with rising online grocery penetration.  We will assess if Korean F&amp;B companies can repeat the success story of Korean cosmetic companies had shown in 2014 and 2015 supported by rising e-commerce in China.   

Positive Impact of Increasing Global Online Grocery: CJ Cheiljedang (097950 KS)