Vipshop

Vipshop, denoted as (VIP.com), is one of the leading Chinese online discount retailers. The company is considered to be the largest flash sale website. VIP.com was founded in Agosto 2008 by Ya Shen and Xiao Bo Hong to provide consumers throughout China with popular branded products, incliuding men’s and women’s apparel, through flash sales at a relative discount. The company has its headquarters in Guangzhou city.

In 2009, the company rapidly developed and realized its breakthrough as China’s biggest flash sale retailer. In Outubro 2010, VIP.com established the biggest logistic center of B2C commerce in South China. In Março 2012, VIP.com became the first South China e-commerce to be successfully listed on NYSE. In Agosto 2013, VIP.com was officially positioned as a “Website expert in special offers,” with transaction share rated at Number 5 in China.

In Novembro 2013, the company changed its domain name to www.vip.com.

In Fevereiro 2014, VIP.com strategically acquired 75% shares in Lefeng.com, further strengthening the company’s leadership position in e-commerce and ultimately allowing customers to continuously enjoy fashion and beauty.

Between 2016 and 2018, VIP.com’s operating margin reduced from 4.8% to 2.9%. As a result, the company optimized its processes and outsourced specific tasks for more efficient operations. The company has continuously reduced the number of its permanent employees due to its process optimization.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.

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