China is the largest digital commerce economy in the world and, according to researcher eMarketer, is on pace to pass the U.S. as the largest retail market outright in 2020. Though dominated by names like Alibaba (NYSE: BABA), e-commerce is still very much a growth industry on the other side of the Pacific. Alibaba-backed e-commerce infrastructure outfit Boazun (NASDAQ: BZUN) -- with a market cap of just shy of $2.6 billion -- is thus worth some attention.
While the Chinese consumer is certainly reeling this year amid the COVID-19 pandemic, e-commerce is helping many manage their purchasing amid social distancing orders. Some method of digital purchase will account for about 40% of total retail sales in China in 2020, an increase of 16% from 2019 (again according to eMarketer). Not a bad figure considering the type of year this is shaping up to be.
That is showing up in Baozun's results. Building on its 35% year-over-year revenue advance in 2019, Q1 2020 revenue increased 18%, and Q2 accelerated to 26% (to 2.15 billion Chinese renminbi, or $305 million). As of the end of June, brands utilizing Baozun's online store management, marketing, and/or order fulfillment services increased to 250, compared with 239 at the end of March and 212 at the end of June 2019.
Source Fool.com