Vipshop's financial report for the second quarter of 2024: net revenue of 26.9 billion yuan, announced a new round of 1 billion dollar repurchase plans

China's leading online brand discount retailer Vipshop released financial results for the second quarter of 2024. Financial reports show that in the second quarter of this year, Vipshop achieved net revenue of 26.9 billion yuan (RMB, same below) and non-GAAP net profit of 2.2 billion yuan; GMV was 50.6 billion yuan, the same as the same period last year. The number of active Super VIP (SVIP) users increased 11% year over year, contributing 47% of online spending.

In the second quarter of this year, Vipshop invested more than 0.2 billion dollars to buy back the company's shares, and the pace of share repurchases accelerated. Based on confidence in the company's future development, Vipshop's board of directors approved a new share repurchase plan, which allows the company to repurchase no more than 1 billion US dollars of American Depositary Shares or Class A common shares within 24 months after completing the existing share repurchase plan.

Shen Ya, Chairman and CEO of Vipshop, said, “We focus on enhancing the inherent advantages of the brand's special sale model to better deliver value to users. Next, we will continue to work hard in diversifying the supply of products, providing cost-effective products and worry-free service guarantees, with a view to achieving long-term and sustainable growth.”

Introducing the world's best value brands and boosting the overall performance of core categories

In the first half of this year, the Vipshop buyer team introduced more than 600 new well-known brands to the platform, covering popular, trendy, luxury and European and American designer brands to meet the changing consumer needs of users. For example, in the second quarter of this year, the platform reached cooperation with brands such as DIESEL, Isabel Marant, Marni, and ?$#@$ to open up online and offline channels to bring users the world's best value products.

At the same time, the platform continues to deepen cooperation with nearly 200 brands in the field of customized products to provide users with more cost-effective and differentiated wearable product choices. In the second quarter, GMV for customized products increased by more than 140% year on year, and the repurchase rate was higher than that of similar products. Judging from the proportion of purchasers, the appeal of customized products to high-value users has increased markedly.

With the growing variety of brands and products on the platform, in the second quarter of this year, the overall performance of Super Brand Day and Super Category Day increased by more than 49% year-on-year, and sales of seasonal trending products such as outdoor sportswear equipment and new Chinese clothing grew rapidly.

Provide users with more benefits and enhance users' and brand perception of the long-term value of the platform

In order to meet more consumers' demand for high-quality, low-priced products, the platform recently launched promotional sections such as “Limited Time Rush” and “Everyday Low Price”, integrating traffic resources to display the platform's most discounted products, and carefully planning various concession activities with brands to make users' shopping more cost-effective.

Vipshop recently released the “Vipshop Apparel Industry 2024 Autumn and Winter Trend White Paper”. Through in-depth insight and analysis of consumer trends and industry trends, Vipshop provides brands with first-hand market references, helps brands improve the operational efficiency of trending products on the platform, and provides users with more trending and good products.

For SVIP members, Vipshop will continue to enrich the differentiated premium marketplace, increase the number of exclusive promotions, and enhance members' awareness of their rights and benefits. Among them, in the second quarter of this year, the platform launched a number of online private sales campaigns to bring SVIP members exclusive prices on top domestic and foreign brands. At the same time, the platform added limited-time voucher packages such as Starbucks, Hi Tea, and Himalaya for SVIP members. In addition, Vipshop also launched a 1+1 joint benefit card for SVIP in collaboration with platforms such as Tencent, iQiyi, and CCTV to provide users with more attractive card opening options.

Actively practice energy saving and carbon reduction, and continue to carry out public welfare projects such as rural revitalization

In the first half of this year, Vipshop continued to promote carbon reduction in its own operations and value chain around the promised goal of “achieving carbon neutrality in its own operations by 2030 and reducing the carbon intensity of category 3 by 50% by 2030”.

Among them, through the deployment of photovoltaic power generation in multiple logistics parks and Shanshan Olai stores, in the second quarter, Vipshop's total photovoltaic power generation exceeded 12,000 megawatt-hours, which is equivalent to reducing carbon emissions by more than 7,000 tons; promoting suppliers to consolidate package delivery and reduce unnecessary consumption of packaging materials. In the second quarter, this measure saved more than 0.81 million packages.

In recent years, Vipshop has created a series of public welfare projects such as Only Love Mom, Love Only Charity Program, and Langtou Village Revitalization, and continue to carry out “one warehouse, one village” rural revitalization public welfare projects to help surrounding villages by combining the advantages of warehousing sites in various regions. By the end of the second quarter of this year, Vipshop Charity had invested a total of 0.745 billion yuan.

21K Views