Please note that all the charts are live.
· Overall offline sectors remain weak in Nov MTD (Nov 1-27), Housing sector continuing to underperform the most, as rising Covid cases and strict policies weigh on consumer spending.
· However, partial improvement is expected in Dec vs. Nov as key regions like Guangzhou, Shenzhen, Beijing, Shanghai, and Chengdu started to ease policy in early Dec by no longer requiring negative test proof when going to venues such as shopping malls and restaurants.
· CITS Hainan DFS improves y/y in Nov MTD driven by 1) new Haikou Int’l DFS store, 2) local gov’t consumption voucher in late Oct, and 3) Double 11 promotion, although spending fades exiting Nov likely due to hangover effect and increasing Covid cases in Hainan Island.
· Both offline and online spending on Int'l Luxury continue to be weak in Nov. Most luxury players struggle, but Hermes continues to be resilient.
· Overall ecommerce platforms suffer during Double 11 (Oct + Nov MTD) from higher order return rate due to logistic disruption and shipment delay.
· Covid related medicines/medical equipment sales surge exiting Nov as cases rise.
· Home Appliances y/y sales on Tmall/JD/DY/KS slows down due to hangover from a strong 3Q and shift to PDD’s 10b subsidy channel.
· Express Shipment volume y/y decelerates in Nov MTD (Nov 1-21) dragged down by 1) disappointing Double 11 online sales, and 2) Covid logistics disruption, although the latter is expected to alleviate in Dec on the back of gov’t support.
Medicine and Medical Equipment Sales Rally As China Eases COVID Measures
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