On February 13, Beijing time, the US-listed e-commerce company Vip.com (NYSE:VIPS) announced its unaudited financial report for the fourth quarter of 2017. The financial report shows that VIP's total net revenue for the quarter was 24.1 billion yuan, an increase of 27.1% year-on-year; according to non-GAAP accounting standards, Q4's net profit to VIP shareholders was 888.1 million yuan.

Vipshop Q4 continues to make profits, and Tencent and Jingdong's traffic cooperation is on the verge

This is the first financial report announced by Weipin in December 2017 after it announced its strategic cooperation with Tencent and Jingdong. Weipin said that as an early move of the tripartite cooperation, Tencent and Jingdong will fight for the opening of the traffic portal of the VIP. As soon as possible, the growth effect brought about by strategic cooperation is expected to start to appear in the second quarter of 2018 as soon as possible, and it will be effective in the third and fourth quarters.

“The gradual opening of the traffic portal is a phased achievement of the comprehensive strategic cooperation between Vipshop and Tencent and JD. It is also a solid step forward for the three parties to build a win-win ecosystem.” Shen Ya, Chairman and CEO of Vipshop He said: "In the future, there will be more depth and more three-dimensional cooperation. It is worth looking forward to."

This also means that in the fourth quarter, the continuous evolution of the ability of VIP will support its continued steady growth. As of the February 13 financial report, VIP will close at 16.39 U.S. dollars on the previous trading day, an increase of over 100 percent from the previous low of 7.79 U.S. dollars.

Return to Value under Steady Growth

According to the fourth quarter financial report, the total number of orders of VIP will increase by 27% year-on-year to 104.2 million, and the total number of orders in 2017 will exceed 300 million to reach 335 million; the per capita consumption will increase by 22% year-on-year, and the per-capita orders will increase by 22%. The repurchase rate of users is as high as 84%, and 96% of orders are purchased by repeat customers. This strong lead in the performance of the e-commerce industry has also been generally optimistic about the capital market. The VIP stock price has soared since the fourth quarter. According to industry sources, thanks to the core strengths of self-employed apparel and apparel categories, high-quality customer base, and the continued strength of the previously neglected logistics finance sector, the logic of the continued rise in the stock price of Vipshop lies in the support of its own strength. Return to value.

Vipshop will keep up with the e-commerce consumer industry upgrade trend, continue to conduct e-commerce business and innovative models, create value for consumers while improving their own efficiency and performance, has always insisted on quality growth. The listed company's stock price will eventually match the growth of the company's performance and the growth space. The steady growth of Vipshop and its persistence in brand development strategy will undoubtedly bring more expectations to the capital market.

Sharing the flow of dividends and strategic resources with Tencent and Jingdong

The Chinese e-commerce industry has entered the second half, and e-commerce companies are constantly responding to market changes and challenges with new development strategies. The ever-changing market also makes it necessary to build ecological alliances and mutual empowerment. Vipshop will enter into strategic cooperation with Tencent and Jingdong at the end of 2017. The establishment of a win-win ecosystem is also based on this original intention. It seeks to maximize the use of high-quality tripartite resources, achieve complementary advantages and strategic cooperation, and work together to create a more comprehensive eco-eco-chain. .

Currently, the opening of the traffic portal as an early action for tripartite cooperation has been finalized. According to Weipin, in this strategic cooperation, VIP will receive multiple platform traffic portals provided by Tencent and Jingdong, enjoying the traffic bonus and business space it brings. In terms of specific cooperation, Tencent will provide portals for Weipin Club in Weixin Wallet for social network traffic cooperation. In Jingdong, Weipin will get Jingdong APP homepage and Jingdong's WeChat shopping portal.

At present, the above-mentioned entrance construction is progressing rapidly. From the 1st of February onwards, a small number of WeChat users can directly access the “Weipinhui” official applet and experience related services through the WeChat client's “My-wallet-third-party service” “VIP”, and the relevant services are currently available. At the entrance of the “wallet” in grayscale, it will be fully launched to all WeChat users on the day. The entrance of the Jidoh East’s Jingdong App also strives to go online as soon as possible.

Traffic is a strategic resource for eCommerce. WeChat has 980 million monthly active users and more than 800 million WeChat users. It can import huge traffic for VIP, helping it attract new customers and enrich the number of daily users. Its sales business performance. At the same time, Weipin will accumulate on genuine e-commerce and fashion e-commerce, with about 300 million users, 80% women, and influence on young people, and will also be more powerful in satisfying users of WeChat platform for discovery, discussion, and purchase. Experience the huge demand for quality consumption including branded apparel, fashion wear, skin care and beauty, and promote the evolution of WeChat social + e-commerce capabilities to achieve the "1+1>2" effect.

In cooperation with JD.com, the two parties will also make full use of each other’s strategic resources and complement each other in terms of category and customer base. Jingdong is China's head B2C e-commerce, and the number of active users is close to 300 million. Users can use the Vipshop portal to purchase the products of the Vipshop, and help the Vipshop to complete certain transaction goals on the JD.com platform. At the same time, it can also enhance the richness of Jingdong's products and attract more female customers. Jingdong has an industry-leading advantage in the 3C digital field and has a higher proportion of male users. It can complement the dress wear, beauty products, and female users of Vipshop. After the two resources have been opened up, they will be developed in a mutually agreed-upon mode of operation, which will attract and shake more consumers and potential customers, and bring about significant scale effect of e-commerce.

As Shen Ya said, the future is ecological, and only open cooperation can win together. Vipshop will also make full use of its strategic cooperation resources and seek for win-win cooperation with Tencent and JD.com in a wider range of areas to further promote the overall development of the e-commerce industry and improve the service experience for customers.

Although the growth effect brought about by the three-party strategic cooperation is expected to begin to show significant results in the second half of 2018, there is no doubt that after the opening of the traffic flow, the future of VIP will be even greater. The tripartite cooperation will promote the optimal allocation of resources in the e-commerce industry, promote the overall development of the industry, and expand the imagination of the industry.

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