China's Discount Retailer Vipshop Achieves Revenue of CNY 27.5 Bn in Q1 2023, Up 9% YoY

Consumer Discretionary Author: Zhisheng Wang, Yiran Xing Editor: Yiran XING May 30, 2023 04:28 PM (GMT+8)

With the recovery of consumer spending, Vipshop is further enriching the supply of branded products to meet the fast-growing demand for quality consumption.


Vipshop Holdings Limited (hereinafter referred to as "Vipshop", Chinese: 唯品会, NYSE: VIPS), headquartered in Guangzhou, recently released its first 2023 quarterly report. In Q1 2023, the company achieved revenue of CNY 27.5 billion (USD 3.88 billion), up 9.1% year-over-year and above market expectations. Non-GAAP net income reached CNY 2.1 billion, an increase of 45.8% from the same period last year. Moreover, total merchandise transactions in Q1 were CNY 48.5 billion, up 14.0% over the previous year, and the number of active users was 43.8 million, 4.0% more than in the previous year. Thus, the company's performance grew steadily and the active user rate increased significantly.

In terms of business segments, Vipshop's revenue was mainly derived from product revenue and other revenue. Product revenue amounted to CNY 25.938 billion, up 8.4% year-on-year from CNY 23.926 billion in the same period last year. Other revenue amounted to CNY 1.599 billion, up 21.3% from CNY 1.318 billion in the same period last year. Vipshop's other revenue mainly includes product promotion, online advertising revenue, rental revenue mainly from Shanshan Outlet, fees charged to third-party merchants whose platforms the company provides access to for its product sales, third-party logistics service revenue, loan facilitation service revenue, and membership fee revenue.

Founded in 2008, Vipshop is the world’s leading online discount retailer for brands that pioneered the innovative e-commerce model of "Selective Brands, Deep Discount, Limited Offering" in China. In March 2012, Vipshop was listed on the New York Stock Exchange (NYSE) in the U.S. In May, 2023, the China Chain-Store & Franchise Association (CCFA) and Deloitte jointly released the 2023 China’s Top 100 E-tailing List, and Vipshop ranked third, behind and Alibaba.

In recent years, Vipshop has been accelerating its internationalization strategy. In 2014, Vipshop invested in Fashion and You, an Indian flash sale website; in 2015, Vipshop made a strategic investment in Ensogo, a special sale e-commerce platform in Southeast Asia; in the same year, Vipshop invested in Showroomprivé, a French fashion e-commerce company; in 2018, Vipshop launched its overseas social e-commerce project "Octopus"; in 2022, Vipshop first registered the trademark of Nowrain, leveraging the popularity of TikTok live-streaming and short video to expand rapidly, and then invested in two outbound enterprises Qpendo and Rexing, aiming its overseas target at the Southeast Asian market.

Furthermore, Vipshop has actively implemented the United Nations’ Sustainable Development Goals and ESG concept. According to the 2022 report on the official website, Vipshop is actively responding to the double-carbon strategy and promoting the development of carbon-neutral targets and pathways at the group level. In the second half of 2022, Vipshop established a three-tier organizational structure of the Board of Directors, ESG Committee and ESG Working Group to improve the ESG management mechanism. In the future, around ESG issues such as addressing climate change, Vipshop will systematically deploy and promote its work to create greater value together with stakeholders.

The major competitors of Vipshop mainly include Chinese companies such as Taobao (Chinese: 淘宝), Tmall (Chinese: 天猫), (Chinese: 京东) and Suning Commerce (Chinese: 苏宁易购), as well as international players such as Amazon and eBay from the US.

As of press time, Vipshop closed at USD 15.04 apiece, with a market cap of USD 8.46 billion.