Reported 8 months ago
On June 19, 2024, at 2:34 a.m., Kupeng's troops descended on Taiwan, with NetHome aiming to boost 3C sales through AI advancements and expand beyond the 3C market, while Fubon Media solidifies its leading position with 3 strategic growth engines. Pictured is NetHome Chairman James Zheng. Today marks a super day for e-commerce shareholder meetings, as Fubon Media (momo) and NetHome (PChome) coincidentally hold their meetings on the same day. Facing the invasion of the Korean e-commerce giant Kupeng into Taiwan, NetHome Chairman James Zheng revealed that Fubon Media's stock price correction is related to Kupeng. However, Fubon Media Chairman Cai Mingzhong has prepared three growth engines to confront this, emphasizing momo's ample growth space. Despite NetHome's two-year losses, James Zheng expressed optimism at the shareholders' meeting, proclaiming this year as a crucial moment to return to glory. He mentioned that after challenges such as changes in the competitive environment, A7 warehouse cost pressures, and low 3C product demand last year, NetHome focused on upgrading its app system and restructuring subsidiaries. Zheng emphasized that 'loss convergence' is this year's operational goal, with signs of improvement in profitability in March. While Zheng exuded confidence, small NetHome shareholders appeared worried, feeling that the company is struggling with its operational situation. Zheng stressed that their profit foundation differs from others and they faced pressure due to low 3C product demand in the past two years. A shareholder questioned how NetHome will face the challenge of Kupeng's invasion, but Zheng believed the impact isn't significant, showcasing strong double-digit growth in sales during PChome's 618 discount season compared to the previous year. He explained that global firms don't need to make money in the customer acquisition phase, which applies to Shopee and Kupeng also. Rushing to compete will lead to heavy losses, so NetHome focuses on promoting selected items and mentions momo, despite being a leader, experiencing slower growth and facing difficulties against Kupeng, resulting in a significant stock price correction. Cai Mingzhong at Fubon Media's meeting expressed great confidence in the company's future, emphasizing the growth potential. He highlighted Fubon Media's transformation into a diversified tech e-commerce entity, utilizing big data algorithms to convert its vast customer base into digital advertising solutions for suppliers, along with initiatives like expanding product variety on the platform, transitioning TV shopping into online social e-commerce, and introducing a new business called 'mo+ store'. Cai Mingzhong is bullish on their potential in the Taiwan e-commerce market, emphasizing the room for growth compared to the U.S. and South Korea's e-commerce market penetration, with Kupeng trying to partner with local brands for market domination, while Fubon Media, with the largest customer base in Taiwan, strong bargaining power with suppliers, and comprehensive warehousing and delivery fleet, stands out in the fierce local and international e-commerce competition.
Source: YAHOO