News on Medial

Chinese ecommerce giants face delicate balance between discounts, profit

Economic Times · 6m

Alibaba and JD.com's upcoming quarterly earnings reports will provide insight into consumer sentiment in China's e-commerce market. Both companies face competition from low-cost platforms such as Pinduoduo and Douyin, as Chinese consumers seek discounts and cheaper shopping options. This presents a challenge for Alibaba and JD.com, which traditionally focused on selling premium products. In response, they are entering the unbranded goods territory, similar to Pinduoduo's strategy. However, this approach may slow revenue growth and erode profit margins. Analysts predict moderate revenue growth for Alibaba and JD.com in the next quarter. Brands are also shifting their focus to live-streaming platforms like Douyin, affecting the profitability of e-commerce sales. The earnings reports will provide insights into these market dynamics.