Shanghai –
Quarterly earnings from Chinese e-commerce giants Alibaba and JD.com will be closely watched this week as barometers of consumer sentiment in the world’s second-largest economy.
Both companies, which together account for about 69% of China’s e-commerce market sales according to DBS estimates, have faced increasing competition in recent years from low-cost platforms such as PDD Holding’s Pinduoduo and Douyin, owned by ByteDance.
Chinese consumers are looking for discounts and cheaper shopping due to their cautious spending stance following the COVID-19 pandemic, amid lower economic growth and the slowdown in the real estate sector. Alibaba and JD.com have responded to this trend, but risk lower margins.
