Managing Director, Zero One, Zero One

Vincent Fernando, CFA

20 years of experience researching capital markets in Asia and the USA.

Managing Director, Zero One

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Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Equity Bottom-Up

Initial data from China's mid-year shopping festival has come out very strong. According to Alibaba, total gross merchandise volume jumped 50% YoY in the first ten hours of the campaign with Taobao Live registering US$280mn in sales in the first 90 minutes. Transaction volumes for luxury products also soared 400% YoY in the first hour, according to JD. However, what is more interesting than the sales strength itself is how the surge in demand has been underpinned by e-commerce live streaming as brands increasingly use it to reach and monetize consumers.JD, for example, has partnered with Tencent-backed video app Kuaishou allowing its 300mn daily active users to directly purchase JD products without leaving the app. This is on top of its other partnerships with firms like Tiktok, Huya, and Douyu. Such integration between a major E-commerce platform and live streaming is a major leap for the industry and the 618 festival has shown how strong such integration can be. Western tech companies such as Facebook and Amazon should take note.Alibaba and JD are showing significant sales strength as the 618 festival jumpstarts China's COVID recovery and potentially convinces more brands to further embrace live streaming e-commerce. Should the 618 shopping festival maintain its momentum, we foresee brands doubling down on the channel, which bodes well for live stream players this year.

Initial data from China's mid-year shopping festival has come out very strong. According to Alibaba, total gross merchandise volume jumped 50% YoY in the first ten hours of the campaign with Taobao Live registering US$280mn in sales in the first 90 minutes. Transaction volumes for luxury products also soared 400% YoY in the first hour, according to JD. However, what is more interesting than the sales strength itself is how the surge in demand has been underpinned by e-commerce live streaming as brands increasingly use it to reach and monetize consumers.JD, for example, has partnered with Tencent-backed video app Kuaishou allowing its 300mn daily active users to directly purchase JD products without leaving the app. This is on top of its other partnerships with firms like Tiktok, Huya, and Douyu. Such integration between a major E-commerce platform and live streaming is a major leap for the industry and the 618 festival has shown how strong such integration can be. Western tech companies such as Facebook and Amazon should take note.Alibaba and JD are showing significant sales strength as the 618 festival jumpstarts China's COVID recovery and potentially convinces more brands to further embrace live streaming e-commerce. Should the 618 shopping festival maintain its momentum, we foresee brands doubling down on the channel, which bodes well for live stream players this year.

中国の618祭「リベンジショッピング」は、電子商取引の未来がどうなるかを世界に示す

JD.com (ADR)

中国の618祭「リベンジショッピング」は、電子商取引の未来がどうなるかを世界に示す