China’s growing e-commerce market is creating a new set of winners

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Online shopping in China is widely expected to grow. It's less clear how much longtime players such as Alibaba and JD.com will benefit.

Online shopping in China is widely expected to grow. It's less clear how much longtime players such as Alibaba and JD.com will benefit. "You have relatively strong insurgent players coming in," James Yang, Hong Kong-based partner at Bain and Company told me last week. "This is going to be not just a two-player game, but a three, four, five-player game," he said. E-commerce's share of China's retail sales climbed to 37.5% in 2023, up from 27.

com and a price target of $28 a share. That's below the stock's $30.21 close on Thursday. UBS analysts still think JD.com shares can go to $40, according to a note on May 28 that rates the stock a buy. "On a clean base, general merchandise, especially the supermarket category, should be the key driver for 2024, following JD's business optimisation," UBS analyst Kenneth Fong and a team wrote.

 

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