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Equity Analyst, LightStream Research

Supun Walpola

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Thematic (Sector/Industry)

China Consumer discretionary / Thematic (Sector/Industry)

<ul>
<li>There is heavy regional disparity in e-commerce penetration in China. </li>
<li>Disposable income and urbanisation are two of the main drivers of e-commerce penetration in China. </li>
<li>At the current income growth and the rate of urbanisation, the e-commerce penetration in most of the provinces with less than 10% penetration could reach 10%-15% over the next three years. </li>
<li>At the same time, it would be difficult for penetration levels to improve in the cities that already have more than 15% penetration. </li>
</ul>


There is heavy regional disparity in e-commerce penetration in China. 
Disposable income and urbanisation are two of the main drivers of e-commerce penetration in China. 
At the current income growth and the rate of urbanisation, the e-commerce penetration in most of the provinces with less than 10% penetration could reach 10%-15% over the next three years. 
At the same time, it would be difficult for penetration levels to improve in the cities that already have more than 15% penetration. 


How Is China’s E-Commerce Penetration Shaping Up?