Case Study: VIPS Success In China

940 Words4 Pages
Tina Wang
Stephen P. Davis
Business writing
June 29, 2015
The miracles: VIPS’ Success in China Between 2008 and 2015
Vipshop Holdings Ltd (VIPS) has rapidly become one of China’s three big mainstream electric commercial states today, since its founding in August 2008. It is a preferred online flash sales channel in China for popular domestic and international brands, and the company offers high quality and popular brand products to consumers throughout China at a significant discount from retail prices. VIPS’ unique business model, sales channel and strong after-sale service guarantee have contributed to the success of VIPS in China between the years 2008 and 2015.
VIPS’ business model provides consumers a unique online shopping experience for
…show more content…
VIPS only purchases from the regulated channels, and all of them have signed agreements that promise the products are quality goods. According to the official website of VIPS, China Pacific property insurance LTD underwrites every product. Because all of goods have quality insurance, consumers can rest assured to purchase the goods. In November 2013, VIPS had a new domain name called VIP.COM, and at the same time it provided a new brand interpretation, include Very Selective Products, Incredible Price, and Privileged Services. VIPS shapes a new brand image to strengthen the brand image in the consumer. According to the China electronic commerce research center, monitoring data shows that in the third quarter of 2013, VIPS’ customer repeat purchase rate reached 73.8%. (Electronic Commerce Research Center, 2012) In addition, Chinese consumers are highly conscious to brand and sensitive to price, yet the availability of discount retailers and outlet malls within China's retail ecosystem is extremely limited. VIPS bridges this gap by connecting consumers with a wide selection of carefully selected products from brand
Open Document