The latest financial report from e-commerce services provider Baozun Inc. (BZUN.US; 9991.HK) is providing the latest evidence of a growing theme in China these days, namely that cautious consumers are refraining from big-ticket spending. We’ve seen this theme quite regularly during the first-quarter earnings season for cars and real estate, which are two of the most expensive big-ticket items for ordinary consumers.
Now, Baozun is showing the trend also extends down the food chain to home appliances and electronics as well. By comparison, cheaper items like fast-moving consumer goods and personal care products are the hot ticket these days, showing people are still willing to spend on these cheaper everyday items.
At the same time, Baozun has unveiled a new international expansion strategy as it attempts to sell its popular tools for e-commerce merchants outside China. That campaign appears to build on the company’s purchase earlier this year of clothing retailer Gap’s (GPS.US) China stores, which is taking Baozun away from its roots as a software as a service (SaaS) provider to an integrated provider of such services as well as retail brand operator.