Crazy Hit The 2 Billion 900 Million Layout Line Under The Ole Business, What Is Vip.Com To Recruit To Serve A Second Line Of New Women?

Vip.com (VIPS.US) announced in July 10th that it has signed a takeover agreement with Hongkong Shanquan group and Ningbo star equity investment partnership (limited partnership) through a wholly owned subsidiary of VipshopInternationalHoldingsLimited in Ningbo, and acquired 2 billion 900 million of the 100% stake in Shanshan Commercial Group Co., Ltd. in cash.

It is reported that Shanshan Commercial Group Co., Ltd. is located in Ningbo. It is a Oteri J chain group. It has opened and operated 5 outlets, located in Ningbo, Taiyuan, Harbin, Zhengzhou and Nanchang. According to the open market data, in 2018, in the top 20 list of domestic outlets sales, Shanshan Orai monopolized four seats.

Vip.com said that through this acquisition, the layout of the line under the ole business, to achieve online, offline integration of all channels for sale and retail layout.

Zhang Yidong, vice president of Societe Generale Securities economics and Finance Research Institute, said vip.com has been developing steadily and occupied a seat in the vertical field. But in the long run, in the fierce competition in the industry, vip.com is hard to compete with ALI and Jingdong's integrated e-commerce giant. Coupled with the impact of rising electricity providers such as the spate of business, vip.com, a discount moat, has slowed down in recent years and is in a more difficult position. If vip.com wants to achieve long-term development, it must launch a new approach that the public accepts, and urgently needs to find new growth points.

In the second quarter of 2018, vip.com announced its entry into WeChat's social networking section and launched a new platform for wholesale purchasing, "the only product warehouse". It adopted the new S2B2C mode to layout the social business. Vip.com has built many vip.com social networking outlets such as vip.com APP and small programs on the C side to deepen the sale.

In Zhang Yidong's view, vip.com launched the only product warehouse, focusing on the B end social business distribution mode, linking brand inventory quality sourcing and professional purchasing, small and medium-sized wholesalers, to create an efficient and low threshold access platform, with the help of social retail power, and brands to seize the purchase and wholesale market. This also means that vip.com is becoming more and more fullness in the flow entry matrix, trying to fully cover the social shopping crowd. First, the only warehouse can be able to buy and sell wholesalers to solve their supply chain problems; secondly, the only warehouse can further help the brand consumers to consume high quality stocks; third, the product warehouse can also maximize the advantages of vip.com in the supply chain for a long time, bringing new growth space for vip.com.

Observation, vip.com as a special discount electricity supplier, through the absorption of tail cargo inventory, brand products will be divided into batches of one to twenty percent off time depth discounts, to "flash purchase" and other forms to attract user traffic. On the one hand, vip.com can help suppliers to achieve small profits and quick turnover, clean up a large number of stock stocks; on the other hand, deep discounts also satisfy consumers' demand for low-priced brand goods. Zhang Yidong found the price of the same commodity in vip.com compared with other electricity suppliers. In the category of women's wear, women's shoes, women's bags, home and so on, vip.com reduced the discount and discount activities through the coupons on the platform, and the price was still lower than the platform. Vip.com built a moat in the field of sale through activities such as "flash buying" and "fast product".

From the perspective of user portrait, vip.com's target audience is a female user in a second tier city, with a ratio of 68.79% to female users and 58.16% to a second line user. From the perspective of consumer ability user profiles, vip.com's user structure is the most similar to Tmall's, with 68.79% of the users who have the middle end and high-end consumer capability.

Through the comparison of vip.com and Tmall products, vip.com has a relatively large discount on women's wear, women's shoes and women's bags. At the same time, vip.com also has a large number of new products, and the speed of updating is fast, and the coincidence degree with vip.com is higher, which attracts the flow of female users. And other categories, especially men's clothing, shoes, etc., are a lot of tail cargo inventory, and Tmall and Jingdong products overlap rate is very low. Female users are prone to impulsive consumption when they are consuming, while buying things for themselves, they will buy things for their husbands, boyfriends and children, thus driving the whole sales volume of vip.com.

The first textile network reporter learned that vip.com was founded in August 2008 by Shen Ya and Hong Xiaobo jointly founded in Guangzhou, and was formally launched in December of the same year. Vip.com is a vertical e-commerce platform based on "flash sale". It started with self clothing, and then gradually extended to the multi class comprehensive e-commerce platform, such as shoes, cosmetics, sporting goods, maternal and child products, etc., through deep discount and limited sale of branded goods, creating a buying atmosphere and attracting users' consumption.

According to the financial report, in the first quarter of 2019, vip.com's business revenue increased 7.3% to 21 billion 300 million yuan, exceeding the expected 4%, and also exceeded the previous guideline growth of 0-5%. Net profit of non general guidelines increased 12% to 816 million yuan over the same period, exceeding the expected 11%. Net profit margin increased by 0.17 percentage points to 3.83% over the same period. The company expects revenue growth of 0-5% in the two quarter of 19 over the same period, and the median of the guideline interval is slightly lower than the market expected growth of 4.2% over the same period last year.

Wu Yue, an analyst at CICC, believes that vip.com's earnings are better than market expectations during the reporting period, mainly due to several factors.

First, the improvement of the macro environment, while vip.com shifted its focus to clothing category, so the company's proprietary business GMV achieved steady growth in the first quarter, especially in March. During the reporting period, the company's clothing category GMV grew by 16% over the same period last year, exceeding the overall GMV growth rate of the company (an increase of 11% over the same period).

The two is the decline in the return rate of vip.com during the reporting period, so that the growth of GMV is more reflected in the income level.

Three started in the fourth quarter of 2018, and vip.com gradually transferred some of the lower profit margins from the self market to the third party. It also made the growth of the platform business commission income more obvious. (other income in the first quarter of 19 increased by 71% over the same period, of which the commission income accounted for 25%, while the 2018 annual commission income accounted for 20% of other income). But considering the uncertainty of the future macro environment, it is estimated that the growth rate of GMV will remain at around 10% in the 2019 year, and the revenue growth will be around 6%.

Wu Yue expects vip.com's profit margin to continue to improve. In the first quarter, if the three party logistics was eliminated, the gross profit margin was 1.5% in the first quarter of 2019, the gross profit margin was 0.9% last year, and the impact of the re classification of some advertising costs (the gross profit margin was 0.2% in the first quarter of 19), the gross profit margin of the company actually increased significantly, which was about 1 percentage points higher than that of the previous year. It mainly benefited from the improvement of clothing category in GMV, and the means of promotion and so on. Although the three party logistics business has continued to lower gross margins, it is expected that vip.com's gross profit margin in 2019 is expected to reach 20.8%. At the same time, the operating leverage gradually appeared, and the cost of R & D decreased significantly. In 2019, the net profit of non general guidelines was expected to reach 3 billion 100 million yuan, with a net profit margin of 3.5%.

In addition, although Sino US trade friction has limited impact on vip.com's fundamentals, it may affect market sentiment in the short term. It is observed that overseas business accounts for only 4% of vip.com's total GMV, and the impact of Sino US trade friction is relatively small. Wu Yue believes that vip.com's special sale and tail cargo mode will have the characteristics of anti cyclical, and can still maintain growth in the weak economy and pressure faced by suppliers.

It is understood that vip.com's largest shareholder is the founder of the company and Shen Ya of CEO, according to the December 16, 2018 information, Shen Ya holds 12.6% stake in the company through ElegantHolding; the second largest shareholder is Jingdong, holding 12.2% stake in the company through direct and indirect (Windcreek); the third largest shareholder is Tencent; at the end of 2018, Tencent increased its stock holdings through the two tier market, the shareholding ratio of the company increased to 7.84% at present; fourth largest shareholder, Hong Xiaobo, is co founder and chief operating officer of the company. Highvivacity holds 6.8% of the company's stake.

Vip.com's revenue mainly comes from commodity sales, including retail (2C) and wholesale (2B business). At present, wholesale business is still in its initial stage, with a smaller scale but larger growth potential. The retail business model is basically stable and its growth rate has also slowed down.

By the end of 2018, vip.com had six major logistics warehouses in China, which are located in Wuqing, Guangdong, Zhaoqing, Guangdong Foshan, Jiangsu Kunshan, Hubei Ezhou, Ezhou and Guangdong, respectively, in North China, East China, central China, Southwest China and Northeast China.

As of the three quarter of 2018, the total storage area of vip.com was over 2 million 900 thousand square meters, of which its own area was 1 million 800 thousand square meters and 1 million 100 thousand square meters respectively. In addition, the company has 18 large international cargo warehouses overseas, covering France, Australia, South Korea, the United States and other countries and regions. The total area of the cross-border warehouses has been 162 thousand square meters, of which 53 thousand of the overseas warehouses have been put into use.