Vip.Com Began To Expand Its Scale To Enter The Third Party Platform

< p > for the Chinese stock market, the scale of such revenue may still be a minor role.

But for the general loss of B2C electricity supplier, vip.com's performance is enough to make them go forward.

Jingdong, fan Kong, Dangdang and so on have introduced the "vip.com mode" and launched their own brand sale business.

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< p > but with little effect.

In vip.com's third quarter earnings report, the third party's open platform revenue is only $2 million 500 thousand.

Vip.com began to think about expanding its complementary business through capital, especially in mobile terminals.

Yang Donghao said mobile terminals are the focus of future investment.

Vip.com CEO Shen Ya also said that it is necessary to solve the effective path of mobile terminal and buy < a > commodity < /a >.

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Vip.com's performance in the capital market is rather "magical" from the breakup at the beginning of the listing to the price earnings ratio of the Internet Co that is now approaching the P.

In just a year and a half, vip.com's share price has nearly doubled, rising from less than $5 to $84 A share (before the deadline).

According to the price earnings ratio, vip.com's market capitalization is about 7 times that of Dangdang network, 11 times of Lanting Pavilion's potential and 100 times of that of Mcglaughlin.

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< p > the third quarter of this year, < a > vip.com < /a > the repeat purchase rate of all orders is 91%, if the customer calculates, the repeat purchase rate is 74%.

This data has not been looked at by the whole network, nor by second.

The most important thing is that female consumers account for more than 70%.

Yang Donghao even put it in a word that online shopping is a champion of women.

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< p > vip.com's flash buying mode is not complicated.

Its core is to help brands deal with off season goods, stimulate and mobilize consumers' impulse consumption on the Internet.

Vip.com will not be able to go online for more than 5 days for suppliers who participate in the brand sale. Even if they are not sold out, the goods will be quickly withdrawn.

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< p > this model has advantages and disadvantages.

The advantages lie in: small and beautiful, user experience is good, warehouse logistics is fast and effective, and the bad side is also very obvious.

After the user arrives at the only product conference, vip.com can only choose the sale that is provided by vip.com less than a > brand < /a >.

As for other options, demand can not be satisfied.

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< p >, so vip.com began to try the third party open platform.

Starting in April this year, vip.com began to launch a brand straight hair, that is, after users enter the category of straight hair, the final distribution and replacement are all responsible for the brand, and vip.com is only responsible for auditing the qualification.

Yang Donghao said that because of the fear of affecting the user experience, the company is very careful in doing the third party platform.

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< p > but the income of $2 million 500 thousand from the third party platform obviously can not satisfy vip.com.

At this time, capital expansion is an effective way to quickly solve the scale effect and strategic layout.

Yang Donghao said they are considering capital investment.

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< p > as of September 30th this year, the total value of cash and cash equivalents in the only club was $279 million, and the value of securities held to maturity was $202 million 700 thousand.

In the third quarter, vip.com's net cash from business operations was US $98 million 600 thousand.

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In March, vip.com submitted a document to the securities and Exchange Commission on Monday, saying it would sell 4 million US Depositary Receipts (two Depositary Shares per American Depository Receipt) to a number of underwriters. The highest issue price of common shares is $13.135 per share, with a total price of about $181 million 300 thousand.

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< p > according to the information disclosed in the SEC document, "may invest or acquire some complementary businesses."

Yang Donghao told the Economic Observer website that vip.com did consider investing in mergers and acquisitions, but he did not want to disclose the direction of investment.

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< p > however, for vip.com, the bottleneck of user scale is an indisputable fact.

In the third quarter, vip.com's active users had just exceeded 4 million.

Yang Donghao said that the first priority is to attract more users; the second point is to continue to increase investment in warehousing and logistics and IT infrastructure, and provide users with better experience.

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Behind the rapid growth of P, there are also on-line products.

Up to now, vip.com maintains a relatively low SKU, the number of goods maintained between 2000 to 3000, exclusive cooperative brand in more than 800.

Feng Jialu, vice president of vip.com brand and public relations, said there were some official flagship stores in Tmall.

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< p > but cannot put eggs in the same basket.

This is the most effective and simplest way for a brand dealer or dealer.

Cao Lei, director of the China e-Business Research Center, said that if more than 50% of a brand's sales came from a certain channel, it meant that the channel had been kidnapped.

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< p > a supplier who sells children's clothing in vip.com told the Economic Observer network that vip.com's sales and payments are much faster than those of other suppliers, but the requirements are also more severe. "The relationship between brands and distributors is always a game."

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< p > "next year, vip.com may not be able to maintain its growth rate this year."

Yang Donghao said that next year's growth rate will be reduced, but the overall scale of revenue is bound to go up.

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