In 2015, Jumei bought a minority shares stake in It’S SKIN, a Korean beauty brand. After purchasing the shares, the CEO, Leo Ou Chen, insisted that the popularity of Korean beauty products in China has dramatically increased in the last few years.
In 2016, Jumai’s total net revenue decreased from RM6.3 billion to RM5.8 billion in 2017 and later to RMB4.3 billion in 2018. The company attributed the decrease in revenue to intense competition in the industry, changes in government policies, and reduced customer spending.
In 2016, Jumei.com struggled to privatize due to its struggles to remain competitive in a fierce e-commerce Chinese market.
In 2016, 2017, and 2018, Jumai had approximately 15.4 million, 15.1, and 10.7 million active customers. In 2018, the company worked with 1341 third part supplier merchants.
In 2017, investors were unimpressed by the company’s move to acquire Ankerbox, a power bank startup company unrelated to the company’s segment.
In 2017, Jumei was in trouble, and Mr. Chen, the CEO, announced that he would purchase back all the company’s depository shares to remove the company from the New York Stoke exchange.
In April 2020, Jumei.com was delisted from the New York Stock Exchange after being wholly privatized.
Jumei retail used two-step merger approach to finalize its privatization. After submitting the tender offer, Super ROI Global Holding Limited through Jumei Investment Holding Company followed up with a short merger for $2 per share.
In 2015, Jumei granted permission to third parties to sell products on its website because the company had ended its marketplace service.
After the acquisition, Jumei faced a fake-product scandal resulting from the company’s overreliance on sourced products from third parties. After customers found fake products circulating in the online platform, they lost trust in the company, and Jumei’s stock prices and performance were greatly affected.
To boost its sales, the company offered exclusive products such as the Hippo Family Mask, which Jumei insisted has been one of its most popular products since it was added to the website.
In April 2020, super ROI and Jumei Investment Holding Group Company were completed. In 2017, Deloitte and STORES Media recognized VIP.com as the world’s fasted growing retailer brand in their Top 250 Global Powers of Retailing.
As of 2020, VIP.com had 7,567 permanent employees working at its various outlets, significantly decreasing from 57 638 in 2018. As of February 2021, VIP.com had 83.9 million active customers, an increase from 69 million active users in 2020.
In 2020, the total orders for the full years increased by 22%, from 566.3 million in 2019 to 692.4 million. VIP.com CEO, Mr. Eric Shen, said the company was delighted to finish 2020 with strong financial and operational results.
During the fourth quarter of 2020, VIP.com’s revenue increased to RMB35.8 billion due to the increased number of active customers.
Additionally, VIP.com provides logistics, warehousing, technology development, product procurement, and consultancy services.
VIP.com provides its consumers with splendid services that include 7 Days unconditional return policy, 43 Ways of free and safe payments, 365 days call services, and 5000 logistic employees working 24 hours a day.
Between August and December 2020, VIP.com developed and used an inspection system to gain a competitive advantage and transaction opportunities.
Investigations on the allegation by China’s top market watchdog found VIP.com to violate unfair competition legislations between August and December 2020 and was fined 3 million.
According to ecommerceDB.com’s May 2021 analysis, VIP.com’s growth has constantly been slowing down. Although in 2017, the company still recorded 34% growth in its GMV, the growth rate has been lower year after year.
According to ecommerceDB.com’s projections, GMV year-on-year growth will fall to 7% and 5% in 2021 and 2022, respectively. Judging by these projections, VIP.com’s GMV growth is likely to stagnate in the coming years.
