Menu
KrASIA
News

China’s online discount retailer Vipshop sees its profit surge 65%

Written by Song Jingli Published on 

Share
Focus on the apparel category is the main factor for profitability improvement.

Chinese online discount e-commerce site for brands reported Wednesday that it booked RMB 21.3 billion (USD 3.2 billion) in revenue in the first quarter of 2019, increasing by 7.3% year-on-year.

The company, which was founded in August 2008, said its active users in the quarter increased 14% year-on-year to 29.7 million. Its net income grew 64.7% year-on-year to RMB 872.3 million (USD 130 million).

Donghao Yang, the chief financial officer of Vipshop said the company’s profitability has started to improve as a result of an emphasis on the apparel category, the shift of low-margin products to the marketplace platform, and focus on the discount retail model.

However, the company said it expects its revenue to be between RMB 20.7 billion and RMB 21.7 billion in the coming quarter, which means close to zero growth.

Contact the writer at [email protected]

Share

You might like these

  • Insights

    Decoding Shein: The rise of China’s newest retail decacorn (Part 1 of 3)

    By 

    LatePost

    26 Jan 2021    03:52 AM

KrASIA InsightsKrASIA Insights

  • Picus will invest up to USD 75 million in Asia’s early-stage tech startups.

    Q&A

    German investment firm Picus Capital to focus on Asia in 2021: Q&A with Oliver Heinrich

    By Avanish Tiwary

    25 Jan 202101:05 AM

Most PopularMost Popular

See All