Jinwu Financial News | Tianfeng has released a Research Report indicating that since the incident involving EAST BUY's ‘little essay’ occurred, the bank believes that EAST BUY (01797) has undergone significant changes in Business, logic, valuation, and expectations. During this period, EAST BUY has deeply refined its self-operated products, enhanced its supply chain capabilities, and improved its online deployment strategy; successfully completing the operational transition amidst the traffic switch, remaining an outstanding Technology and cultural company.
The bank stated that in the face of new opportunities in WeChat e-commerce, it believes that EAST BUY's competitiveness is reflected in: 1) Wide recognition, brand endorsement, and precise positioning. The bank believes that WeChat e-commerce inherently has strong social attributes, and EAST BUY has naturally developed recognizability and trust through multiple rounds of public opinion incidents; for example, in gift-giving scenarios, brand recognition may be stronger than sheer cost-effectiveness, with EAST BUY’s brand ethos of "health, high quality, and high cost-performance" being highly compatible with the scenario. EAST BUY has already established and continuously enhanced its membership system in the application, coupled with an increase in customers and improved repurchase rates, the membership program genuinely offers customers more favorable products and more comprehensive member services. 2) A rich SKU matrix with a high level of category selection. Unlike a single brand offering a single variety, broader product areas help capture more traffic conversion opportunities. EAST BUY focuses on discovering unmet consumer needs, establishing market differentiation, building strong brand awareness, expanding market coverage and exposure, striving to upgrade and improve products, and continuously expanding product categories to create popular products. The bank believes that EAST BUY currently possesses a shelf-style e-commerce attribute and social e-commerce capability, hoping to become an online Sam's Club and is expected to achieve secondary growth through changes.
The bank continues by stating that EAST BUY is focused on being a self-operated product and live e-commerce platform that carefully selects high-quality products for customers, a fine product and Technology company centered around continuously providing "EAST BUY" self-operated Shenzhen Agricultural Products Group; as well as a cultural dissemination company that offers customers a pleasant experience. By providing high-quality products and services, it hopes to contribute to a more beautiful, healthy, and quality life for each customer and audience. Maintaining a Buy rating.
