SOFT DATA
Vipshop (VIP.com), is China’s leading online discount retailer for brands considered as the largest flash sale website. Vipshop runs a B2C (business-to-consumer) online marketplace that sells mostly apparel, accessories, beauty, cosmetics, maternal and child products through ongoing flash sales. Vipshop's primary business strategy is to partner with popular and well-known brands and sell their excess inventory to consumers at a significant discount from retail prices. The discounts normally range between 20-80%. Currently, Vipshop records 330 million registered members and works with over 13,000 brands.
Vip.com opened VIP International in 2014, which is dedicated to cross-border e-commerce. On VIP International, all products are sourced and bought directly from overseas. It has set up professional buyer groups in 11 countries and regions to guarantee product authenticity from the supply chain. Based on its 12 warehouses overseas and 11 bonded warehouses in China, VIP International has built a sophisticated and flexible logistics network, which enables it to start delivery within 12 hours after orders are received.
ANALYSIS AND PURCHASING INSIGHTS
VIP International can be a good start since the entry requirements are not as rigorous as Tmall Global or JD Worldwide, as well as the cost of investment, is lower compared to these 2 sites.
VIP can be an effective trial tool for foreign brands to test out there newest products in the Chinese market before venturing into more substantial e-commerce activities. At the same time, flash sales websites can be considered an effective marketing technique to give more exposure to one’s brand.
However, the product categories are limited to health and beauty, mother and baby, clothing and shoes, home and furniture, and F&B on VIP International. Additionally, brands need to be aware that flash sales can lead to sudden stock shortage.
