On November 7th, recently, Vipshop held a conference in Beijing with the theme of “Consumer Upgrading, Special Sale”. Huang Hongying, vice president of Vipshop, said that Vipshop’s special sales strategy will be upgraded to an omni-channel, full-matrix, and systematic sales system to fully release the new consumption power under the special sale model. In terms of offline channels, Vipshop will also begin to try offline sales.
In the course of the development of E-Commerce in China over the past decade, Vipshop will grow with a commercial model of special sales. The E-Commerce listed in the US stock market in the second quarter of 2018 totaled 20.7 billion yuan, an increase of 18.4% year-on-year; net profit attributable to shareholders was 681.6 million yuan, an increase of 76.4%. Although net profit rose sharply and revenue was better than expected, but due to factors such as poor performance guidance and slowing growth of active users, the stock price fell 10% after the market.
In fact, in recent years, Vipshop’s quarterly earnings growth has been tightening. From the first quarter financial report of Vipshop in 2018, the growth rate of revenue continued to slow down. At the same time, the year-on-year growth rate of revenue in the last seven quarters declined, and the net profit continued to grow negatively for four consecutive quarters. After experiencing a high-speed growth period, Internet E-Commerce has entered a growth bottleneck period as the number of established brands and users has gradually stabilized, and Vipshop will not be able to avoid falling into a dilemma of growth.
In order to get out of the predicament, Vipshop has made a lot of changes, but after trying to expand the category, from vertical E-Commerce to platform-type E-Commerce, stationing Tencent and Jingdong, and transforming to social E-Commerce, Vipshop will decide to re- Focus on “selling”, emphasizing “doing what you are good at” and starting to lay out offline sales.
In the past few years, Vipshop has been trying online. In the second half of 2017, Vipshop will launch the fresh food store “Jinjun Life”, which is managed by Pinjun Holdings, a wholly-owned logistics company of Vipshop. The business scope includes: daily groceries, meat products, cooked food baking, vegetables and seafood, etc. Wait. Since then, Vipshop has also launched an offline experience store “Preferred Pavilion” containing a variety of categories such as kitchen, home textile bedding, bathroom, travel outdoor, etc., as well as a clothing “flash shop” that creates offline shopping scenes twenty years later. “. However, Pinjun Life, Preferred Pavilion and Flash Shop are not related to the special sales business of Vipshop.
In October, the offline brand store, which was first promoted by Vipshop, landed in Beijing Guorui City Shopping Center. At present, the offline retail store of Vipshop is still in the stage of trial operation. Similar to the online store of Vipshop, the store also has female products, and there are relatively few men’s wear. As the requirements of the new generation of consumers for the consumer experience continue to escalate, the E-Commerce layout has become the trend of the past two years. Ali, Tencent, Jingdong and other online giants are involved in offline physical retailing through self-construction, acquisition, strategic cooperation and other means. Innovative formats such as Box Horse Fresh, Super Species and Jingdong Home are emerging. Vipshop will make a special sale or a new profit point under the line, but the future is still waiting for the market to test.
For Vipshop, online push-selling apparel still has challenges in terms of supply chain, inventory turnover and price advantage, while the traditional clothing store has been deeply cultivating the source, channel and experience of online farming for many years. What the clubhouse lacks. Vipshop will need to constantly and accurately empower the consumer groups of each port to enhance the shopping experience, in order to occupy a favorable place in the fiercely competitive E-Commerce field.