Revealing The Three Essences Of Vip.Com'S Business

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< p > March 5th, < a href= "//www.sjfzxm.com/" > vip.com < /a > (NYSE:VIPS) jumped 32.44% to 169.21 dollars, and the market value was 9 billion 418 million US dollars. The crazy performance of the capital market benefited from the expected fourth quarter earnings and the 2013 annual report.

How amazing are these two earnings reports? Let's take the figures.

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< p > total revenue: $651 million, an increase of 117.3% over the same period last year, < /p >

< p > active users: 5 million 700 thousand, an increase of 119.5% (/p) over 2 million 600 thousand in the same period last year.

< p > total orders: 17 million 700 thousand copies, an increase of 102.4%, < /p > 8 million 800 thousand over the same period last year.

The above three indicators, vip.com and the same period, are 100% growth rate, and vip.com to 2014 Q1 net revenue growth of 106% to 108% year-on-year, still more than 100%! For vip.com, the author has written many articles before, to this day, I think that can really sum up, or analyze the essence of vip.com business, is the meaning of this article. P

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< p > < strong > vip.com has done the three nature of < a href= > //www.sjfzxm.com/ > Business > /a > /strong > /p >

< p > the essence of business: China's retail industry is underdeveloped.

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< p > the real achievement of vip.com is that in addition to the correct business mode and the execution of Shen Ya's team, I think the most important objective condition is China's naturally backward retail environment.

Vip.com's position is "a website specializing in special sale", which can be understood as online orlies.

The two core elements of orlies are: name brand + discount.

You can imagine that in China's 345 tier cities, especially in remote counties, the stores of Nike and Adidas are very rare.

And vip.com can radiate the whole country without the restrictions of the region through the Internet.

For vip.com itself, online is more explosive and more incremental than the traditional outlets.

For consumers, with vip.com, everyone was suddenly pulled away.

A consumer in Guangzhou can grab the windbreaker of seven wolves on vip.com, and also in Gansu and Inner Mongolia.

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< p > the essence of business two: doing business of a group of people.

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< p > many people are willing to turn vip.com into a vertical electricity supplier.

In fact, compared with the electricity supplier selling shoes and selling books, vip.com is not really a vertical electricity supplier.

Selling shoes, selling books, and so called vertical is the vertical of category: selling the same thing to everyone.

And vip.com? Although sales of clothing accounted for 50%, vip.com's shopping crowd was 75%.

This group of people has many common characteristics, for example, about 75% of the women come from three or four line cities, have a certain spending power, care about brands.

According to user segmentation, vip.com is an e-commerce provider for vertical users.

So, you see vip.com's online beauty channel, home textiles, parent-child, these are designed around his users.

Besides buying clothes, women also buy cosmetics and buy bags.

Women who have families also buy baby clothes, diapers and so on.

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< p > the best business in the world is to do all business to a group of people, not to do business with everyone.

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< p > the essence of business three: repeat purchase rate.

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"P" in e-commerce, the purchase rate should be one of the final indicators, vip.com disclosed a repeat purchase rate of 90%! A lot of users of vip.com, a year can be purchased seven times.

Such figures can only be described with horror. Moreover, vip.com has acquired such a high repeat purchase rate without the mass advertising.

The high repeat purchase rate can relieve the pressure of vip.com getting new customers.

After buying new customers, vip.com can keep people behind.

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< p > < strong > ceiling and future imaginary space < /strong > /p >

< p > ceiling, it seems to be "a href=" //www.sjfzxm.com/ "," electricity supplier < /a "and retail favorite word.

For example, when we sell books, the sales volume of books is less than 50 billion yuan a year, that is, they are all accounted for and the profits can be seen.

Does vip.com have a ceiling? I think it is impossible to say that there is no ceiling, and it is also unreasonable.

The ceiling of vip.com depends on the design of vip.com's category structure.

For example, clothing accounted for the proportion of sales, such as the proportion of new products.

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< p > after the vip.com earnings report, CEO Shen Ya answers the Deutsche Bank analyst "whether vip.com will develop towards a mixed mode" in the future, the answer is "vip.com will continue to wear clothing and shoes as the main category in the future."

From the answer of Shen Ya, we can see that in the short term, vip.com will also make intensive efforts in clothing and shoes.

And the ceiling of discount clothing is hard to come across in the short term.

American investment bank Paget said in a research report that China's clothing tail cargo market is about 400 billion yuan, while vip.com's current share is less than 5%.

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< p > in 1-2 years, it is hard for me to see the ceiling of vip.com.

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< p > finally, I want to talk about the stock price of vip.com.

Vip.com's high valuation and high growth rate, I think, is mainly understood by Wall Street.

Another reason is that vip.com's quarterly revenue, gross profit and net profit have almost exceeded the expectations of Wall Street analysts since its launch.

Vip.com's four quarter US dollar trust certificate diluted earnings amounted to $0.49, exceeding the expectations of 5 analysts at Wall Street.

Vip.com's time sale special discount economy, the US cable Zulily (8 billion 300 million US dollar market value) and the offline TJX (market capitalization 43 billion 700 million US dollars).

In contrast, old beauty is easier to understand.

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< p > maybe there are no demons in this society, but there are too many people who do not understand.

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