momo.com Inc
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
TWD 295.52 | Twdjrnq | Vynkkqqy |
Demand Softening for Online Retail in Taiwan But Momo.com Still Has Best In Class Logistics Network
Business Strategy and Outlook
We expect Momo.com to maintain its leading market share in Taiwan’s business-to-consumer, or B2C, direct sales e-commerce industry, due to a sizable lead in logistics infrastructure among peers that has indirectly led to more users, better convenience, and a higher operating margin than its closest peer. Momo.com is leveraging its logistics advantage and convenience as its long-term strategy and plans to building out two more major distribution centers by 2025, which should further differentiate its service between not only online competition but also brick-and-mortar retailers. The company is also adding new livestreaming and third-party, or 3P, platforms to its business, which could also further add incremental users.