Eric Shen, the CEO of Vipshop Holdings Ltd – ADR (NYSE:VIPS), expressed that they are delighted with their strategic shifts to focus on their old clients and attract high quality new clients is delivering consistent results. The company’s ARPU jumped 11% YoY to RMB643 in the third quarter, led by the strong increase in the shopping frequency and average ticket size. In addition, the total active clients for TM closed September 30, 2017 came at 6.5 million, jumping 22% from the comparable period last year. They are delighted with the strong growth they have recorded in their core categories.
The CEO of Vipshop added that they continue to improve the selection of their product offerings to fulfill their customer needs. In the previous quarter, they made substantial progress in respect of category expansion, counting the offering of pharmaceutical related products. In the meantime, the company has seen strong growth in its cosmetics, sports and Vipshop life channel. They are in the process or continue to open up their market place, which will result in better client service and the incremental margin contribution.
More recently, Vipshop added over 100 popular international and domestic fashion brands. For Singles’ Day 2017 they delivered solid performance that exceeded company’s expectations. Over 4,000 brands participated in the events and total orders surpassed 10 million.
On the CRM front, the company recorded further progress with its new Super VIP program. With this latest offering, it was noted that company’s loyal customers shop with them more regularly. Shen added that they started to introduce the program to all clients at the close of the third quarter and expect the positive trends will continue.
The clients financing service has noted increased popularity, which is assisting with uplift. They are leveraging their six overseas warehouse and 10 overseas office cost to bring extremely desirable products to customers in China, which assists to include spending of company’s post 90’s customers.