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<Research>HSBC: 'Insta-shopping' Mkt Target Audience May Be Smaller; MEITUAN-W to Maintain Leading Position
Recommend 35 Positive 87 Negative 25 |
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The competition in China's 'insta-shopping' market is becoming increasingly intense, which should drive the overall growth in the on-demand retail market, although the growth may be primarily supported by offline retail, with some contribution from traditional e-commerce, HSBC Global Research published a research report saying. The broker predicted that the overall retail demand in China will not rise significantly. While on-demand retail offers convenience and meets urgent needs, its competitiveness in terms of pricing and product variety is relatively weaker compared to traditional e-commerce, with smaller target audience and still relatively limited contribution, according to proprietary analysis by HSBC Global Research. HSBC Global Research believed that MEITUAN-W (03690.HK) will maintain its leading position due to its delivery network and first-mover advantage. BABA-W (09988.HK) should increase its market share by leveraging Taobao's massive user base for cross-selling and relying on Ele.me's existing on-demand retail delivery network. JD-SW (09618.HK)'s strength in consumer electronics and fast-moving consumer goods remains its strongest defense line, but as it enters food delivery, it may take time to expand its delivery network to handle the surge in orders. The broker anticipated that BABA-W and JD-SW's e-commerce sales will see cannibalization. The table below lists HSBC Global Research's ratings and target prices for the aforementioned stocks: Stock│ Rating│ TP MEITUAN-W (03690.HK)│Buy│$160 JD-SW (09618.HK)│Buy│$187 BABA-W (09988.HK)│Buy│$172 AASTOCKS Financial News Website: www.aastocks.com |
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