1、Market UpdateQ1 2025ONLINE RETAIL2Q1 2025 ONLINE RETAIL MARKET REPORT|IN THIS ISSUE2024 in Review and a 2025 OutlookNavigating recovery:Insights and outlook for the online retail sector 2024 in Review and a 2025 Outlook Macroeconomic Landscape Change in Estimates Operational Performance Key Trends P

2、ublic Equity Market Overview M&A LandscapeThe online retail sector has gradually recovered from market turbulence and inflationary pressures experienced over the past few years.While sales volumes have not yet returned to pre-pandemic levels,profitability is clearly on the rise.This improvement seen

3、 in 2024 is attributed to a combination of better market conditions and revised cost structures.Consumer optimism has been bolstered by declining inflation and interest rate cuts in the latter half of 2024,signaling a potential broader market rebound.However,recent tariff policies imposed by the U.S

4、.administration have created headwinds,leading to uncertainty among both consumers and investors.These policies have contributed to cautious spending behavior and risk aversion,complicating the sectors recovery trajectory.This growing uncertainty is echoed in quarterly earnings reports,where CEOs of

5、 leading online retail companies have highlighted risks to near-term future demand,and analysts have revised revenue and profitability estimates downward in the years to come.EV/EBITDA valuations are showing promising signs of gradual normalisation following the turbulence of the COVID-19 era,paving

6、 the way for a healthier long-term outlook.While online retail companies have faced challenges and underperformed compared to the broader market,this period of adjustment presents opportunities for growth and resilience.For instance,although share prices of inventory-based ecommerce and direct-to-co