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Thursday, 29 August 2013 13:59

Investment Theme - e-Commerce and the Chinese consumer

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The rise of mobile computing has truly been astonishing in the last 5 years since the introduction by Apple of the first iPhone in 2007.

Like the rail road industry in the US in the 1800's, that resulted in the rise of many complimentary industries, so too we see the rise of industries that are connected to the massive increase in mobile computing and e-commerce.  Facebook, Twitter, eBay are now household names that did not exist all that long ago.

While acknowledging that the late 1990's saw a share market tech boom that ended badly, we are now seeing a boom of e-commerce that is of a different quality.

Investors can choose to ignore this and focus on traditional companies, however e-commerce is likely to impact all forms of business and it's impact must be considered when making investment decisions.

By means of an example, the below chart shows the growth in smart phones in China since 2009.  Chinese e-commerce has grown over 70%pa since 2009.

Chinese Smartphone shipments

This growth theme is difficult to play from Australia given our small population by world standards.

We can report however that both Platinum Asset Management and Magellan Financial Group are both well and truly on top of developments in e-Commerce generally and more specifically in China.

This material has been provided for general information purposes and must not be construed as investment advice. This material has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Investors should consider obtaining professional investment advice tailored to their specific circumstances prior to making any investment decisions and should read the relevant Product Disclosure Statement.

 

Read 1245 times Last modified on Friday, 04 October 2013 16:44
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