Baozun Inc (ADR) (NASDAQ:BZUN) investors are thrilled to see that just one year later, this Chinese e-commerce company realized close to twice over the total order value achieved on Singles Day of 2016.
Rather than the Black Friday and Cyber Monday that have American shoppers stoked all year for the holiday season to arrive for the best deals, China has a holiday for the singles of the world: the ultimate anti-Valentine’s Day. Instead of roses and chocolate, shoppers have plenty of advantageous deals and sales to choose from on Alibaba’s e-commerce platform. 2017 has treated the company kindly, with Baozun bringing RMB4.99 billion to the table via payment gateways spanning all of the company’s e-commerce channels by this June’s anti-Valentine’s Day celebration of singledom.
Baozun began preparing for Singles Day in June 2017 to ensure that it was adequately prepared to meet the enormous surge in orders. Technology plays a central role in Baozun’s strategy and has become increasingly more important during Singles Day to ensure the seamless integration of the Company’s IT infrastructure, online store management, digital marketing, customer service, warehousing and fulfillment, and back-end administration. Baozun’s sophisticated IT infrastructure was also further strengthened, allowing it to process millions of orders per hour during peak time on Singles Day. These IT systems now include new tools such as AI customer service bots and more than one hundred self-developed all-encompassing management tools for online stores which significantly increase operational efficiency and improve the shopping experience for consumers. These innovative technologies also allow Baozun to drive industry growth through innovation and benefit from the omni-channel shift that is taking place in the New Retail Era in China.
As part of its effort to support brand partners’ promotional activities during Singles Day, Baozun began jointly implementing detailed execution plans and rolling out comprehensive digital marketing solutions with its brand partners in July 2017, based on big data analysis and its in-depth understanding of consumer behavior. As part of this initiative, Baozun launched unified marketing campaigns for brand partners starting in August 2017 that simultaneously use a wide variety of multi-media formats across multiple marketing channels.
Mr. Vincent Qiu, Chief Executive Officer of Baozun, commented, “Total order value almost doubled from last year’s Singles Day demonstrating the effectiveness of our strategic foresight to adequately plan and cooperate with our brand partners for a massive surge in orders. Our proven operational capabilities, strengthened IT infrastructure and the expanded array of solutions we offer allowed us to settle over 12 million orders on Singles Day, an increase of 87% compared with last year. We remain committed to investing and further developing our IT systems, warehousing and fulfillment infrastructure and increasing operational efficiency throughout our entire business. We will continue to partner with leading international brands that benefit from strong consumer recognition and demand. I am confident in our ability to continue offering more innovative solutions that will support both our long-term growth and strengthen our market leading position.”
On the ratings front, Merrill Lynch analyst Binnie Wong maintained a Buy rating on BZUN, with a price target of $38, in a report issued on September 11. The current price target represents a potential upside of 16% from where the stock is currently trading. According to TipRanks.com, Wong has a yearly average return of 12.7%, a 45% success rate, and is ranked #1778 out of 4702 analysts.
Baozun, Inc. is a holding company, which engages in the provision of electronic commerce (e-commerce) services and solutions. It operates through the Brand E-Commerce and Maikefeng segments. The Brand E-Commerce segment provides e-commerce solutions to brand partners, including information technology services, store operations, digital marketing, customer services, warehousing, and fulfillment. The Maikefeng segment manages the retail online platform, Maikefeng.