Guys
A2's research shows that Chinese mothers prefer to buy from physical stores where they can examine the product and make sure it has all the right stamps and is not out of date, to avoid counterfeiting.
So as a2 ramps up its physical store sales in China you can expect some (probably significant) substitution of landed sales for ecommerce sales and the rate of growth of ecommerce sales will naturally moderate. So be careful in intrepreting a "slowdown" in ecommerce sales as a general slowdown when it may simply be the substitution effect (with higher margins!).
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- Caution when looking at ecommerce sales numbers
Caution when looking at ecommerce sales numbers
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