Cao Shunli

Cao Shunli asked about the positive impact of increased Taobao main site traffic from Qiucommerce on Baozun's Q3 performance and future expectations for Q4. She also inquired about the impact of new regulations on advertising spend and tax, particularly for beauty brands, and the potential magnitude on revenue and profitability.

Answer

Junhua Wu (Chief Strategy Officer) clarified that instant shopping (Qiucommerce) is not Baozun's primary focus, as their target traffic is top-tier consumers for fashion, luxury, and electronics. Regarding new advertising regulations, he stated that Baozun has not observed any impact, as brands, including cosmetics, are already spending wisely and maintaining logical investment proportions relative to GMV.

Cao Shunli asked about any positive impact observed from the increase in Taobao's main site traffic, driven by Qiucommerce (instant shopping), on Baozun's Q3 performance, and what sustained inference or potential actions are expected in Q4. She also inquired about the impact of recent new regulations on advertising spend and tax, particularly for beauty brands, on advertising operations, revenue, and profitability.

Answer

Junhua Wu, Chief Strategy Officer, clarified that Qiucommerce (instant shopping) is not a primary battlefield for Baozun's core categories like fashion, luxury, and electronics, which require targeted AIPL traffic rather than instant shopping traffic. He noted that while some FMCG and wine brands are piloting Qiucommerce, it's not a majority focus. Regarding new advertising regulations and tax, Wu stated that no significant impact has been observed on Baozun's operations. He mentioned that brands, including those in cosmetics, are spending marketing budgets wisely and maintaining logical investment proportions relative to their GMV, even after the pandemic.