Shares of Xiangpiaopiao Food, a Chinese beverage maker, have skyrocketed following a notable increase in online sales. This surge came after unconfirmed reports suggested that the company’s packaging contained criticisms of Japan’s discharge of treated wastewater from a nuclear plant.
Stock Performance and Sales Boost
Xiangpiaopiao Food’s shares surged to the daily limit of 10% for two consecutive days, reflecting strong investor interest. Despite eventually trimming some gains, the boost in stock price was significant. A remarkable jump in daily sales was observed on Douyin, China’s version of TikTok. According to third-party platform Feigua, sales from a live broadcast on Douyin soared from merely 2500 yuan ($346) on May 3 to at least 1 million yuan ($138,660) by May 5.
Context and Impact
The spike in Xiangpiaopiao Food’s shares and sales highlights the potent influence of nationalist sentiments on consumer behavior in China. Reports criticizing Japan’s environmental actions, even if unconfirmed, have evidently resonated with consumers, driving them to support domestic brands perceived as aligning with their national interests.
Conclusion
Xiangpiaopiao Food’s recent market performance underscores the complex interplay between geopolitical tensions and consumer markets. The surge in sales and share price, fueled by nationalistic fervor, demonstrates how external political issues can significantly impact domestic businesses.
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