Vipshop Information Technology Co., Ltd. (VIPS) was established in August 2008, headquartered in Guangzhou, and its website was launched on December 8 of the same year. Vipshop’s main business is the online sale of discounted branded goods on the Internet, covering all major categories such as famous apparel, shoes, bags, beauty, mother and baby, and home. On March 23, 2012, Vipshop was listed on the New York Stock Exchange (NYSE). Since its listing, as of March 31, 2020, Vipshop has been profitable for 30 consecutive quarters. Throughout 2019, Vipshop will achieve a net revenue of 93 billion yuan, a year-on-year increase of 10%. Vipshop’s net revenue in Q1 in 2020 is 18.8 billion yuan, and the number of active users is 29.6 million.
Vipshop has created an innovative e-commerce model of “famous brand discounts + limited-time panic buying + genuine guarantee” in China, and has continued to deepen into a “specialized brand + deep discounts + limited-time panic buying” genuine sale model. This model is hailed as “Online Outlets”. Vipshop will launch more than 500 genuine brand sales on time every day at 10 am and 8 pm, and implement a 3-day limited-time snap-up with a discount of up to 100%, bringing consumers a cost-effective “online shopping” shopping experience.
In 2019, Vipshop ranked BrandZ “Top 100 Most Valuable Chinese Brands” for the third time. In BrandZ™ “Top 100 Most Valuable Chinese Brands in 2017”, Vipshop ranked 40th and was awarded the title of “Best New Chinese Brand”. In September 2019, he was selected into the 2018 Top 100 Retail List.
In 2019, Deloitte released the “Global Retail Power 2019” report, and Vipshop ranked second in the “Top 50 Fastest Growing Retailers in the World” while entering the top 100 list.
Introduction to the model
Vipshop (NYSE: VIPS) was established in 2008 and created an innovative e-commerce model of “brand discount + limited time purchase + genuine guarantee” in China, and continued to deepen into a “selected brand + deep discount + limited time sale” of authentic fashion Special sale model, online sales of apparel, shoes and bags, beauty, mother and baby, home and other famous products.
Vipshop took the lead in creating the unique business model of special sale in China, coupled with its “zero inventory” logistics management and seamless docking mode with e-commerce, Vipshop was able to take root in the field of e-commerce in a short time.
According to 2014 iResearch released China’s first “Research Report on China’s Internet Time-limited Sale”, Vipshop will occupy 38.1% of China’s market. According to the “2017 China Online Retail Market Data Monitoring Report” released by the E-Commerce Research Center in June 2018, Vipshop continues to maintain the third place in the B2C market share. In July 2019, Vipshop will realize the online-to-offline integrated full-channel special sale retail layout through the acquisition of Shanshan Commercial Group’s offline Ole business and the online and offline integration of special sales models.
Scale of development
Vipshop currently has nearly 30,000 cooperative brands and 340 million registered members. As of 2019, the number of active users for the year was 69 million, an increase of 14% year-on-year.
In 2019, Vipshop’s net revenue was 93 billion yuan, with a total order volume of 566.3 million orders.
In the first quarter of 2020, Vipshop’s net revenue was 18.8 billion yuan (about 2.7 billion US dollars), and net profit was 986.1 million yuan (about 139.3 million US dollars), an increase of 20.8% year-on-year. Profitable for 30 consecutive quarters. In terms of user data, the number of active users increased to 29.6 million in the first quarter. In terms of orders, Vipshop’s total orders in the first quarter were 122 million orders, a year-on-year increase of 4%.
Vipshop headquarters set up Guangzhou Liwan District, covering an area of 10,000 square meters. In 2016, the Vipshop headquarters building was located in the most attractive area of Guangzhou, Pazhou Internet Innovation Cluster Zone, Haizhu District, adjacent to the Pearl River, covering an area of about 13,000 square meters, with a total construction area of about 160,000 square meters, and a total investment The amount is about RMB 4.1 billion, and it is expected to be completed and put into use in 2020.
Market performance
In 2013, net revenue was US$1.7 billion (approximately RMB 10.6 billion).
In 2014, the net revenue for the year was 3.77 billion US dollars (about 23.556 billion yuan), an increase of 122.4% year-on-year.
In 2015, the total net revenue was 40.2 billion yuan, a year-on-year increase of 74%. The annual operating profit soared 148% year-on-year to 2.07 billion yuan, the annual operating profit rate increased from 3.6% in the same period last year to 5.2%, and the annual gross profit increased 72% year-on-year to 9.9 billion yuan.
In 2016, total revenue was 56.59 billion yuan, up 40.8% year-on-year; gross profit was 13.6 billion yuan, an increase of 37.4% over the same period of the previous year; annual operating profit increased by 32.4% over the previous year to 3.49 billion yuan, except for various indicators In addition to the strong growth of Vipshop, Vipshop’s annual active users increased by 42% year-on-year to 52.1 million; the total order volume for the year increased by 40% year-on-year to 269.8 million orders. As of December 31, 2016, it had achieved 17 consecutive quarters of profitability, writing a myth about the profitability of Chinese e-commerce.
In 2017, Vipshop’s total annual net revenue was RMB 72.9 billion (approximately US$ 11.2 billion), a year-on-year increase of 28.8%. The total order quantity is 335 million. The number of active users for the year was 57.8 million, an increase of 11% year-on-year.
In 2018, Vipshop’s total net revenue was 84.5 billion yuan, an increase of 15.9% year-on-year; net profit was 2.1 billion yuan, an increase of 9.2% year-on-year. At the same time, the total number of orders of Vipshop in 2018 increased by 31% year-on-year to 437 million orders, the total number of active users increased by 5% year-on-year to 60.5 million, and the total annual transaction volume increased by 21% to 131 billion yuan.
In 2019, Vipshop’s total net revenue was US$93 billion and GMV reached 148.2 billion yuan, an increase of 13% from the previous year of 131 billion in 2018; the total number of orders was 566.3 million, an increase of 29%; the number of active users in 2019 increased to 69 million people, a year-on-year increase of 14%.
In Q1 2020, net revenue was 18.8 billion yuan, and GMV reached 28.9 billion yuan. The total number of orders was 121.7 million, an increase of 4% year-on-year compared with 116.5 million orders in the same period last year. The total number of active users reached 29.6 million.
Vipshop will take consumers’ quality demands as the core. As early as 2018, it launched a series of genuine security measures such as “ten authentic guarantees” and “quality control nine articles”, and built a complete set of “global direct mining + Full product inspection + logistics traceability + online and offline linkage + genuine insurance + after-sales” full-loop closed-loop, full-trace traceable genuine guarantee system.
The products sold by Vipshop are purchased from regular channels such as brands, agents, brand branches, and international brand offices in China, and strategic strategic purchase agreements are signed with them. At the same time, Vipshop will strictly review the qualifications of the suppliers, and the five certificates of business licenses, product inspection reports and brand authorization documents are indispensable. For imported commodities, suppliers must also provide customs clearance documents such as customs clearance documents. For products such as 3C, cosmetics, food, etc., suppliers are required to provide corresponding special qualification certificates for commodities in accordance with national regulations.
The brands sold at Vipshop are genuine products, and are underwritten by China Pacific Property Insurance Co., Ltd. for each item purchased.
For Vip.com’s maternal and infant, SGS Switzerland, an internationally authoritative third-party quality inspection agency, was introduced for the first time to conduct independent random vendor rolling inspections of maternal and infant products sold by Vipshop. Product real shot, detailed description to ensure a true display: Vipshop will sell the goods, professional entities to shoot, display detailed details, complete product information, transparent and true introduction to consumers.
