Chinese e-retailer Vipshop posts 122% growth in web sales in 2014
February 20, 2015 05:17 PM
Vipshop Holdings Ltd., a web-only Chinese fashion flash-sale retailer, says sales increased 121.8% in 2014 to $3.77 billion from $1.70 billion a year ago. Also, the Guangzhou-based company’s net income increased 162.5% to $137.3 million from $52.3 million in the prior year, according to the company’s recently released earnings report.
Vipshop is No. 5 in the newly released Internet Retailer Asia 500.
The e-retailer says it added 17 million active users in the past year and its total active users increased 150% to 24 million in 2014.
Vipshop attributes its growth in part to its mobile investment.
“The results were largely driven by our continued efforts in enhancing our mobile shopping experience. Additionally, we have witnessed our initiatives in logistics expansion and warehousing efficiency take shape as we progressed in terms of both customer satisfaction and cost control,” Eric Shen, chairman and CEO of Vipshop, says.
In addition, Vipshop reports:
- During the fourth quarter of 2014, the company’s mobile sales reached about 66% of gross merchandise volume, up from 23% in the same period a year ago.
- Marketplace sales in Q4 are about 10% of total sales.
- The repeat purchase rate was almost 50% in Q4.
- Its logistics infrastructure (warehouses and vehicles) handles 50% of total orders now and it expects to extend that to 70% by the end of 2015.
For the fourth quarter of 2014, Vipshop reports:
- Net revenue increased 108.9% year over year to $1.36 billion
- Net income increased 122.8% to $56.6 million from $25.4 million in the prior year period.
For the year ended Dec. 31, Vipshop reported:
- Net revenue increased 121.8% to $3.77 billion from about $1.70 billion in 2013.
- Net income increased 162.5% to $137.3 million from $52.3 million in 2013.
Vipshop says it expects sales growth of approximately 78% to 85% for the first quarter of 2015.
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