The apparel retailer reports sales of $692 million and a smaller net loss.
Vipshop.com, an e-commerce site operated by Vipshop Holdings Ltd., had a very good year last year, the company says, and its executives attribute its progress to its discount pricing model.
For the year ended Dec. 31, Vipshop,No. 20 in Internet Retailer’s newly published 2013 Asia 500, reported:
The Guangzhou, China-based web-only discount retailer of apparel and accessories attributes its strong growth mainly to the surge in active customers and total orders.
The increase in orders resulted from the addition of several regional e-commerce sites in 2011, continued efforts to optimize brand and product selection, more sales events, and a larger selection of merchandise on its main web site, the company says. Vipshop also says it expanded its regional warehouses into Shanghai, Chengdu and Beijing to meet increased demand.
“As compared to conventional online marketplaces or large-scale multi-category online retailers, we have successfully created and proven there is a third e-commerce model that can provide tremendous scale and profitability,” says Eric Shen, chairman and CEO. “By providing special offers and deep discounts on branded products, we have pioneered the online discount retail model in China.”
For the fourth quarter, Vipshop reported:
Vipshop is the fourth-largest China-based apparel and accessories merchant in the 2013 Asia 500, Vancl.com is the highest-ranked Chinese retailer in the category and No. 10 overall in the Asia 500, followed by 360Mart.com (No. 13) and Jagged Jun (No. 18).