Internet Services Takeaways from 6/18 shopping festival and recent checks

In China, e-commerce growth is strong in 2Q driven by lower tier city expansion, live streaming, & FMCG/food categories, as Covid-19 concerns are still keeping consumers home more than last year, & merchants try to make up for weak 1Q.

19 Jun 2020

China Online retail sales year on year

Source: UBS

This line graph compares the online sales of physical goods to the online sales of physical goods & services from February 2019 to May 2020.

Data points suggest continuation of recent e-commerce strength

Overall, 2Q e-commerce demand remains strong, as Covid-19 concerns are still keeping consumers home more than last year, and merchants promote and try to make up for a weak 1Q. NBS data for May suggest e-commerce growth has returned to pre-Covid levels.

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