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Chinese e-retailer Vipshop’s web sales spike 207% in Q1
Total Vipshop.com orders increase 187% from last year.
Associate Editor, Research
Topics: 2013 earnings, apparel and accessories, Asia 500, Asia e-commerce, China, China e-commerce, Chinese retailer, discount retailer, Eric Shen, first quarter sales, Q1, q1 2013, Q1 earnings, Q1 web sales, Vipshop, Vipshop Holdings Ltd., web sales, web-only
Vipshop.com, an e-commerce site operated by Vipshop Holdings Ltd. (ranked No. 20 in the Internet Retailer Asia 500), maintained its remarkable 2012 growth in the first quarter of 2013, the company says. Eric Shen, chairman and CEO of Vipshop, attributes the gains to continued growth in both active customers and total orders. The web-only discount apparel and accessories retailer is based in Guangzhou, China.
For the first quarter ended March 31, Vipshop reported:
- Total sales increased by 206.8%, to $310.7 million from $101.3 million in the first quarter of 2012.
- Net income was $5.8 million, compared with a net loss of $8.6 million in the same period in 2012.
- The number of active customers was 2.8 million, 180% higher than the 1.0 million customers in the first quarter last year.
- Total orders of 8.8 million, an increase of about 183.9% from 3.1 million.
- Fulfillment expenses increased by 123.1% to $37.7 million from $16.9 million in Q1 2012, reflecting the increase in sales volume and number of orders fulfilled in the first quarter, Vipshop says.
“Benefiting from our focus on optimizing product selection, we expanded our partnerships with higher-end brands, which enabled us to attract more high-income customers, further driving our sales volume while elevating our overall brand image,” says Shen.
Vipshop says first quarter revenues exceeded the company’s expectations partially because of a stronger spending period following the Chinese New Year holiday, which took place in February. “Despite the seasonality associated with the Chinese New Year holiday, we saw a faster and stronger rebound in customer spending and activities in the wake of the holiday period as compared to previous years, demonstrating the increased appeal of our platform to customers looking for uniquely priced offers on their favorite brands,” says Shen.