The novel coronavirus epidemic has brought opportunities for the future development of China’s consumer goods industry, although both consumer non-durable and durable sectors are currently under pressure, a report said.
The report, published Wednesday by S&P Global (China) Ratings with the name “Coronavirus: Understanding the Known Unknowns,” believed that the short-term impact will not cause significant liquidity pressure to most enterprises within the sector since they have strong cash flow yields.
E-commerce has seen soaring growth as an alternative for consumers as most bricks-and-mortar farmers’ markets and supermarkets have shortened business hours or even closed, the report said.
S&P expects a 50-percent to 70-percent increase of fresh produce sales on e-commerce platforms in the first quarter of 2020 since the trade volume of fresh produce on major e-commerce platforms, such as Alibaba’s Hema Fresh and JD.com’s JD Fresh, surged by three to four times during this year’s Spring Festival, compared with that of the same period last year.
The virus outbreak has brought development opportunities to e-commerce enterprises, especially those with advantages in logistics, since it is a period to expand market share and enhance their competitive advantage, the report said.
It also expects a recovery in sales growth of clothing, shoes and home appliances after the epidemic. Xinhuanet