China: VipShop targets 40% sales rise in 2016
The global leader in fashion inventory clearance is now targeting CNY18.5 billion (€2.5 billion) in sales for the last quarter 2016, equivalent to a 33% rise.
Reaching this figure would mean an explosive 40% increase in 2016 annual sales. Such optimism is justified by the excellent results recently published by VipShop for the third quarter.
In the quarterly period closed at the end of September, the group posted a net revenue of CNY12 billion (€1.6 billion), equivalent to a 38.4% rise. The increase was fostered by a 43% yearly upturn in VipShop subscribers, now numbering 20.8 million. This in turn generated a 34% rise in the number of orders, up to 60.1 million.
"Despite some minor weaknesses, the strong rise in the number of customers, and our ability to retain them, illustrate the resilience of our business model," enthused Eric Shen, CEO of VipShop.
"By striking a balance between revenue and profitability, we aim to continue to expand our customer base and gain additional market share within the highly fragmented Chinese retail distribution market."
In 2015, VipShop generated a revenue of CNY40.2 billion (€5.5 billion), equivalent to a 74% rise. Profits grew in proportion, posting a 72% increase, up to CNY9.9 billion.
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