No. of Recommendations: 1
I would agree with everything you have said here except for Baozun. It is such a small company for a China investment. What makes you think they are a reliable company? Is there something that you saw that made you believe in them? Small cap Chinese companies are hard to believe in but if you found something that makes you think they are an honest company I would like to hear it.

buynholdisdead


Baozun would NOT be a microcap dealing fertilizer in Mongolia or some microcap company dealing squid snacks that no one has heard of before. Baozun would also NOT be a company that makes storefronts for rinky dink companies about to go out of business.


Baozun would be 2.51 smallcap company that has a business model that's evolving to become more and more like Shopify. Currently, Baozun has a a strategic partnership with Alibaba but creates storefronts for western brands on both Alibaba’s T-Mall and on JD.com. Baozun has at least 95 brands as clients that includes Nike, Coach, Converse, Levi’s, Calvin Klein in fashion; Subaru, Honda, Mitsubishi (MTU), Fiat (FIATY) and Toyota (TM); Haagen-Dazs and Godiva; Johnson & Johnson (JNJ) and Pepsi (PEP); and Microsoft (MSFT) and GoPro (GPRO).

Baozun already would be known as the company that Western brands goes to in China if they want to establish a eCommerce storefront. While I might not be able to do on the ground due diligence of Chinese companies, I am quite sure companies like Microsoft, Coach and Nike have done due diligence before entrusting Baozun to build their eCommerce storefront.

The upside (reward) in Baozun would be in Baozun also gaining domestic Chinese brands both large and small as clients. The downside (risk) would be in a company like Alibaba or JD.com competing directly with what Baozun does. Similar to how Shopify has the risk of Amazon or Google deciding that they want to build a similar service to Shopify.

Other than that Baozun has all the other risks that any Chinese company would have.


Starrob
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