Author Topic: VIPS - Vipshop Holdings  (Read 3749 times)

randallchsu

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Re: VIPS - Vipshop Holdings
« Reply #10 on: Today at 03:12:01 AM »
Personally, I don't know anyone using VIPS in my small circle of friends in Shenzhen, so I have no experience with VIPS and thus cannot provide any useful comment.

Just for discussion, I think it would be more interesting to look behind the numbers and understand how customers choose a particular platform to complete purchase.

If we just talking about buying woman's apparel online, it's common for a woman to search on Taobao for a brand's dress that she already tried in store. The dress she is looking at is usually in season and on display in store without promotion. She just need to type in the product ID printed on the price tag of the dress she wants to buy. More often than not, she'll find multiple listings selling the exact item, and some sellers would claim the item to be "factory sourced" or a variety of ways to explain the much lower price (60-70% discount).  And most of the time, the listings she is looking at already got dozens of buyer feedback, so she can quickly choose to buy from a seller that she never had a relationship with. She can return the dress for full refund if she is not satisfied and returning it would be extremely easy in China. If she decided to return, her out of pocket expense is probably 8 to 15 rmb.

The ecosystem Taobao already established for this kind of buying behaviour prohibits other sites to gain a significant purchasing dollar in woman's apparel. More buyers are seduced by the above example to use the Taobao/Tmall platform, and the traffic from buyers also encourages the brands to be selling on the platform to gain more eyeball exposure. And in return, the buyers get an increasingly dynamic platform, and the music keeps going.