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Pigeon investors wary of baby bottle maker's Chinese e-tail boom

Analysts take dim view as marketing costs grow and brick-and-mortar sales suffer

Pigeon products on display at a baby products store in Shanghai.

TOKYO -- Japanese baby goods maker Pigeon has found a mixed blessing in its fast-growing Chinese online sales, with higher marketing costs and slumping brick-and-mortar sales worrying investors.

Pigeon joined well over 100 brands -- including heavyweights like iPhone maker Apple, sportswear giant Nike and Japanese cosmetics maker Shiseido -- in ringing up at least 100 million yuan ($14.5 million) from a June sale at Chinese e-commerce leader Alibaba Group Holding. E-commerce has driven Pigeon's growth in China and now generates half its sales there.

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