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In its second quarter earnings report, the Chinese fashion flash sales platform said its revenue reached 29.6 billion yuan ($4.59 billion), gross merchandise volume (GMV) exceeded 48.1 billion yuan ($7.41 billion) and net profit reached 1.5 billion yuan ($237 million), up 11.3 percent.
This marks 35 consecutive quarters of profitability for the New York-listed firm, the report added. Vipshop also saw strong user growth, with monthly active users increasing 32 percent to 51.1 million while paid “Super VIP” users increased 50 percent.
Chairman and CEO, Shen Ya, speaking to analysts in a call following the release, attributed Vipshop’s success to a strategy focussed on leading brands, core products and accessible price points. In particular, this strategy is resonating with male users, a segment Shen believes has a great deal of potential for Vipshop.
Like other Chinese tech firms, Vipshop is facing a tighter regulatory environment, particularly when it comes to anti-competitive practices. In February, it received a fine of 3 million yuan ($464,000) for unfair competition, which followed a 500,000 yuan ($77,000) fine last December for pricing irregularities.
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The return of long-time brand partner Forever 21 to the Chinese market has been recent welcome news for Vipshop, with the fast-fashion player currently only available on its platform, as well as that of group-buying specialists, Pinduoduo, as the brand works towards rolling out a physical retail network in China.
Learn more:
Forever 21 Makes China Market Comeback
Forever 21 is returning to China, following the brand’s high-profile exit from the country in 2019.