Author Topic: VIPS - Vipshop Holdings  (Read 5251 times)

randallchsu

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Re: VIPS - Vipshop Holdings
« Reply #10 on: July 23, 2018, 03:12:01 AM »
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 are just talking about online buying for woman's apparel, it's common for a woman to search on Taobao for a brand's dress that she tried in store. The dress is usually in season and on store display without promotion. She'll find multiple listings selling the exact dress simply by searching the product id number shown on the price tag. Sellers will provide a variety of explanations for the significant discount for the dress (60-70% off of physical retail).   Most of the time, the listings she is looking at already got dozens of buyer feedback, so she can quickly choose which seller to buy from. The seller will offer full refund with no question asked within a week of receiving the dress. If she decided to return, her out of pocket expense is probably 8 to 15 rmb.

The ecosystem that Taobao established for this buying behaviour prohibits others to gain a significant online volume. As more buyers are seduced by the discount for using the Taobao/Tmall platform, the increase in buyer traffic 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.
« Last Edit: July 23, 2018, 07:23:11 AM by randallchsu »


plato1976

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Re: VIPS - Vipshop Holdings
« Reply #11 on: October 06, 2018, 01:16:23 PM »
only 3.6B now

I think it's a very attractive acquisition target at this price