DaDa Group (DADA.US) – Note 5 (Rev. Recognition Change)

[March 19th, 2021] In note 4, I was concerned about the noises that accounting change will introduce. There’s no impact on profit dollar but still it will introduce noises. I expect to feel the impact first from the guidance of 2Q21 when the company reports 1Q21 results. Not sure if we will see a before-after … Continue reading DaDa Group (DADA.US) – Note 5 (Rev. Recognition Change)

58.com – Initial Thoughts

58.com (WUBA.US) [August 23, 2019] * Initial Thoughts * Background I came across this stock when trying various online stock analysis tools. I listened to its 2Q2019 earnings conference call and briefly reviewed most recent company presentation. I found 58.com interesting because of its business model and new business initiatives such as 58 Town and … Continue reading 58.com – Initial Thoughts

Mercari (4385.JP) – Note on Category Deepening, Product Enhancement & Marketplace Stickiness

Mercari (4385.JP) [December 25, 2018] * Note on Category Deepening, Product Enhancement & Marketplace Stickiness * Following series posts on Mercari (initial analysis, withdrawal from UK) and its related topics (network effect and digital payment service), this notes examines Mercari recent marketplace deepening/expansion/enhancement initiatives and also does an ideation exercise on user generated content (UGC). The UGC … Continue reading Mercari (4385.JP) – Note on Category Deepening, Product Enhancement & Marketplace Stickiness

Mercari (4385.JP) – Note on Withdrawal from UK

On December 18, 2018, Mercari announced it will withdraw from UK market. At a meeting of its Board of Directors held on December 18, 2018, Mercari, Inc. (the “Company”) decided to dissolve and liquidate Mercari Europe Ltd and Merpay Ltd, our subsidiaries in the UK. As mentioned in my Mercari initial analysis, UK operation basically … Continue reading Mercari (4385.JP) – Note on Withdrawal from UK

Entering a market where existing platforms have network effect working

The title of this post is very generic because I observed or studied cases in different industries that new entrants want to penetrate markets where incumbents already have their network effect working. By leveraging its resources or capabilities, new entrants might be willing to acquire "users" (depending on dynamics of business, platform might want to … Continue reading Entering a market where existing platforms have network effect working

Mercari (4385.JP) – Initial Analysis

Mercari (4385.JP) [November 25, 2018] * Initial Analysis * Business Model The primary product level business model of Mercari is mobile app-based C2C marketplaces. Mercari's C2C marketplace app portfolio has dominant market position in Japan. Mercari is trying to penetrate overseas markets with operations in US & UK. The US operation is still in early … Continue reading Mercari (4385.JP) – Initial Analysis

PDD.US – 3Q18 Results Quick Look

Projection vs Actual Source of Difference ~ Operation Metrics ~ [1] Conversion rate defined as LTM Active Buyer / Avg. MAU decreased (an improvement for me) significantly by around 10 percentage points. [2] Actual LTM average rate per active buyer is higher then projected [3] Overestimation of adoption rate based on Wechat MAU [4] Underestimation … Continue reading PDD.US – 3Q18 Results Quick Look

PDD.US – Initial Analysis

PDD.US [November 17, 2018] * Initial Analysis * Business Model PDD is platform-on-a-platform marketplace which leverage established social network of foundation platform to aggregate consumer demand at large volume for merchants enabling deep volume discount for consumers. Current Monetization / Revenue Stream Currently, PDD monetizes the marketplace by providing online marketing services to merchants and … Continue reading PDD.US – Initial Analysis