Return To Special Sale This Year Vip.Com Is Looking For Growth Rhythm.

Recently, the sale of vip.com electricity supplier released the latest financial results, the earnings of a number of core data show that from the second half of last year, the business will focus on the sale of vip.com, is looking for growth rhythm.

Vip.com's share price rose by 10% after being boosted by earnings news.

First of all, on the most important net revenue and GMV indicators of the e-commerce platform, vip.com 19Q1 net revenue reached 21 billion 300 million yuan (US $3 billion 200 million), an increase of 7.3% over the same period last year, and GMV was 33 billion 800 million yuan, maintaining a steady growth trend. At the same time, the number of Q1 orders was 116 million 500 thousand single, compared with the same period last year, a 29% increase.

What I want to point out here is that the listed companies of household appliances are very different in terms of the caliber of the GMV index, so there is almost no lateral comparison value, but the longitudinal comparison can be accepted because of the same caliber.

Gross profit and net profit, vip.com gross profit 4 billion 400 million yuan, grow 8.7% compared to the same period, according to general accounting standard, belong to shareholder net profit 872 million 300 thousand yuan, grow 64.7% compared to the same period last year, this is vip.com successive twenty-sixth gain season.

Vip.com Q1 net revenue exceeds market expectations

The scale of users has also continued to grow. The strategic cooperation between Q1 Tencent and Jingdong has contributed about 25% of new customers to vip.com. The total number of active users has increased by 14% to 29 million 700 thousand over the same period last year. In the vip.com App terminal, the two channels of "only product rush" and "last mad rush" have played a role in the pformation and precipitation of new customers.

On these two channels, Sunday financial analysis has done in-depth analysis of the previous articles, the core is to enlarge the advantages of vip.com sale mode, create an atmosphere of "daily activity", and give enough exposure to the App home page, online less than a year, the effect is obvious.

A lot of people have been bad mouthing vip.com. At the very beginning, they were bad mouthing the pattern. They didn't understand the value of sale as a business mode, and some extreme "inventory will no longer". But with vip.com's 26 consecutive quarterly profits, it has already shown that the sale mode has the ability to create stable cash flow and profits.

Later on, vip.com's voice was mainly focused on its growth potential. In fact, the developed countries such as the United States and Japan, which had experienced demographic dividend and Internet dividend, are very rich in retail form. The United States has Amazon, Costco, and discount stores such as T.J.Maxx and ROSS. There are Le Tian in Japan, UNIQLO and don lucky.

On Sunday, finance believes that vip.com's focus and focus is to play its inherent advantages and professional abilities in the "special sale" mode and return to the essence of retail business.

Where does the upgrade come from?

Although the "special sale" has been established as a business mode since its establishment in 2008, vip.com's "special sale" connotation has been evolving and upgrading over the past eleven years.

The definition of special sale usually refers to the sale of special goods at a special (preferential) price in a specified time period.

It is easy to see that the three "special" restrictions made the sale very strong from the very beginning.

If we want to explain clearly that sale can be used as the underlying logic of a business model, we first introduce a concept of supply chain management, Bullwhip Effect, which means that in the supply chain of multi-stage agents, production data will inevitably be constantly magnified, resulting in inventory redundancy.

As a matter of fact, the agent of the first level shopping mall has ordered 100 goods to the city agent. The city agent is afraid that it is not enough to use. It will increase one or 20% more when the agent is sent to the regional agent.

Therefore, inventory management is a very important topic for the garment industry, which has many sizes and styles and has seasonal attributes.

How important is that?

Zhang Yunlan, President of red collar group, has said that for many clothing brands, three items of inventory will be generated for every item of clothing sold.

The earliest vip.com was selling the "tail cargo" online, thus providing value at both ends of the supply and demand: Merchants disposed of inventory, saved a lot of warehousing and management costs, and consumers bought brand goods at a preferential price.

You may wonder, is not the reverse customization mode of C2B now? Is inventory a "false proposition"?

In theory, if all commodity manufacturing can achieve C2B, then the concept of "inventory" will no longer exist.

But the reality is that reverse customization requires strong supply chain flexibility. Landing is very difficult. On the other hand, the task of the enterprise is not only to meet the needs of consumers, but also to guide the needs of consumers. Therefore, many people in the industry, including Dong Mingzhu, believe that C2B is a false proposition.

In the last half of last year, when vip.com returned to special sales, what aspects of the sale were upgraded?

At the end of supply, vip.com began to go deep into the upstream industry chain, providing differentiated solutions for brands, upgrading from simple traffic distribution to more attention and brand synergy growth, providing clear differentiation positioning for brands and helping them find second growth curves beyond traditional models.

Vip.com's first quarter results show that apparel apparel as a core category in the first quarter of 2019 increased by 16% in GMV, accounting for more than 50% of the total platform. After 10 years of development, vip.com has reached long-term cooperation with more than 6000 brands at home and abroad.

In fact, all the businesses of "non-standard" attribute have this characteristic. You will find that whether it is special sale or sub vehicle paction, control is the core barrier of the industry's head players.

In addition, vip.com has the largest global buyers, up to 1600 people's global buyers team and a set of supply chain turnover system based on sale mode. Vip.com has established a complete supply mode of "good brand + good style + fast turnover".

Over the years, there are many players in China's electric business who have special sale mode, some are developing special sale channels on the integrated platform, and there are players who will sell as a selling point just like vip.com, but only one vip.com family with nearly 100 billion revenue and strong user cognition can see that it is not easy to do a good sale mode.

Shenyang has never evaded competition. In last August's conference call, he said, "we see a lot of App doing this, but vip.com is the most professional and also has the closest contact with the brand.

"

At the end of demand, vip.com's core value to users is also quite clear: brand is good.

Using high value goods to meet 330 million users' demand for brand and quality.

In fact, the user value of this brand sale has already taken shape at the very beginning of vip.com's establishment. However, in the past year, its upgrading on demand side is mainly reflected in the continuous enhancement of user awareness and a hole in it.

One of the details is that vip.com App has written four simple words "brand sale" simply and directly on the splash screen at the start and after the incoming broadcast chart. As a contrast, Taobao flash screen is a variety of articles illustrations, Jingdong is the brand mascot and a cartoon UAV.

In the pmission of brand concept, vip.com is very direct.

In this year's 419 vip.com brand sale Festival, vip.com also made the first sale of "special sale" as the theme of the festival. According to Huang Hongying, vice president of vip.com, "positioning the brand sale festival to achieve" big seventy percent off, real benefit, no routine ".

An insider from vip.com said, "now that we are driven by commodity and price, the growth of new customers will become more and more.

(return to the sale strategy) benign change, that is, the price is in place, the user will come, and will introduce her friends together.

"

This focused brand strategy has been effective. Vip.com 19Q1 earnings data show that its active user retention rate has increased to 86.1%, while the proportion of repeat purchase orders has increased to 96.4%. These two data indicate that vip.com's stock users have very high stickiness.

Anti cyclical sale mode

According to the National Bureau of statistics, China's GDP grew by 6.4% in the first quarter of 2019, and the total consumption of social retail products amounted to 97790 billion yuan, up 8.3% from the same period last year.

Recently, we have seen that the international situation is becoming increasingly unstable and the external factors of economic recovery are very limited. Under such a background, consumers are becoming more rational.

It should be noted that sale is a business model that takes into account the dual needs of consumers in pursuit of quality and rational consumption, which can meet the market demand of the downlink cycle.

In the official sale of vip.com before the 419 sale this year, I saw a lot of commentaries, all of which were the feminine users' feeling of lipsticks and costumes bought on vip.com, so that they could also live respectably while struggling.

Calvino, a writer in Italy, says that there is only one goal of time passing, that is, "let the senses and thoughts stabilize and mature, and get rid of all impetuous or pient contingency".

In a mature business market, Wu Yi is not a good company with eighteen.