Jumei sees slump in orders despite Q4 tipped to be the strongest..

By Michelle Yeomans contact

- Last updated on GMT

Jumei sees slump in orders despite Q4 tipped to be the strongest..

Related tags: Online shopping

The fourth quarter is reported to be the strongest for China’s online retailers, thanks to shopping holidays like Singles' Day. However, Jumei seen a decrease in total orders in 2014 by 5.9% to 9.6 million. 

According to tradingfloor.com, retailers should see strong customer and order growth in Q4 because of the likes of good discounts, however the publication reported Jumei to have under-performed.

"Revenues and earnings both missed analysts’ consensus, but curiously strong revenue guidance for the first quarter saw the share price rally 6.3% after hours trading, and close up 7.72​," the website wrote.

Apparently Jumei has been fighting off competition from VIPshop for its' reputation as China's leading online cosmetics retailer.

The beauty retailer's full year results were more positive; total orders grew 18.3% to 42.6 million overall, while active customers grew by 26.7% to 13.3 million.

Popularity of e-commerce in Asia

E-commerce is becoming an increasingly important trend throughout the world, but nowhere more than in the Asia-Pacific region with its fast-growing base of internet users and enormous population.

Studies reveal that e-commerce in Asia will soon be a bigger business than in the Western world, with Forrester Research, a global market researcher predicting that combined internet sales from the region will reach $768bn by 2017, making them bigger than those in Europe and North America combined.

The boom is increasingly being driven by China, as Laurie Du, a Mintel beauty analyst, recently told CosmeticsDesign-Asia.com that innovative digital marketing will now be a requirement for companies to take advantage of the countries’ “fragmented” ​use of traditional media and growing internet use.

China’s top site for online makeup is Jumei, an e-commerce behemoth which has mushroomed since its founding in 2012. The firm is now on track to earn a profit of $100m off sales of $1-1.6bn in 2013.

Online sales allows trade to easily cross international boundaries

E-commerce also allows trade to easily cross international boundaries.

SK is a trend setter for Asia-Pacific and increasingly, the rest of the world, with cosmetics, fashion and music from the country becoming highly popular in overseas market- as evidenced by the runaway success of artist Psy in the West.

Chinese online consumers are increasingly eager to purchase Korean cosmetics, with tie-ins with K-pop bands being used as marketing tools by brands such as Nature Republic.

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