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<Research>Citi Expects Amazon to Launch Platform Akin to PDD Temu
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Citi Research released a research report, stating that there have been many recent reports that Amazon (AMZN.US) is planning to roll out a low-cost section similar to Pinduoduo (PDD.US)'s Temu, selling non-branded clothing, household items and daily necessities for less than US$20, which will be shipped directly from Amazon's China warehouse with a delivery time of 9-11 days, in order to cope with competition in the e-commerce market. The broker expected that Chinese merchants facing price competition in China's cross-border e-commerce market may be interested in an alternative marketplace that retain their rights on setting prices, product selection, and saving cross-border logistics fees. As the project is still in its early stages, it is expected that the new Amazon low-price zone will initially only cover product categories priced at US$20 or less. Citi believed that the impact on Temu's operations and its appeal to US consumers may be minimal in the short term, but it may undermine Temu's appeal to merchants in the long run. Citi maintained a Buy / High Risk rating on Pinduoduo, with a target price of US$198. AAStocks Financial News |
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