According to the U.S. Stock Research Agency, on the evening of February 23, Vipshop, China's leading online brand discount retailer, released its 2021 financial report data. In 2021, Vipshop's overall business achieved steady growth, with the number of active users in the whole year increasing by 12% over 2020 to 93.9 million; GMV increasing by 16% year-on-year to 191.5 billion yuan (RMB, the same below); and the total order volume increased by 14% year-on-year to 790 million. Benefiting from the steady growth of users and ARPU, full-year revenue increased by 15% year-on-year to 117.1 billion yuan; Non-GAAP net profit exceeded 6 billion yuan.
Shen Ya, Chairman and CEO of Vipshop, said: "Over the past year, we have strategically focused on our core brands and high-value customers, improved business synergy, and focused on strengthening our positioning and value as a leading brand discount retailer. Looking forward to the future, we will firmly implement the good goods strategy, continuously deepen brand cooperation, improve customer acquisition efficiency, and continue to use good goods to attract users to visit and shop continuously, so as to achieve high-quality and sustainable long-term growth. ”
Vipshop will strengthen the positioning of brand sales, improve the level of business synergy, and greatly increase the contribution of core brand GMV
In 2021, Vipshop will focus on the cooperation and operation of core and head brands around the strategy of good goods, and consolidate its core competitiveness. At the same time, Vipshop will activate and upgrade the multiple shopping channels on the platform to better empower brands, enrich consumers' shopping experience, and improve the level of business collaboration.
In response to the platform users' pursuit of high quality and cost performance, Vipshop launched a super big name day activity in the second half of 2021, and a number of core brands achieved the highest single-day performance in history. For example, SKECHERS sold nearly 250,000 items on the day of the super big name day event, and an average of 3 items per second were auctioned. More brand partners are embracing Vipshop to provide more exclusive and good-priced goods. In 2021, the contribution of Vipshop's core brand GMV has increased significantly, and the growth rate has exceeded the company's overall level.
At the same time, Vipshop will help brands innovate design and precision marketing through big data, and improve the efficiency of commodity circulation on the platform. For example, Vipshop and Zhou Shengsheng's customized Year of the Tiger goods, with cartoon fun style to create gold jewelry in the Year of the Tiger, fit the preferences of young people, in the Sales of Vipshop gold bracelet for a long time ranked first.
In addition, Vipshop will continue to improve channel capabilities and improve the supply side to meet the emerging needs of consumers. For example, in response to the national tide consumption trend, Vipshop will strengthen the operation of domestic brands, 2021 "Double Eleven" opened 24 hours, the platform clothing and beauty sales TOP10, domestic brands occupy most of the seats; for young users' pursuit of healthy life and technology experience, Vipshop will continue to enrich smart home appliances, health care meals and other categories of SKUs, bringing more choices to consumers.
With more good brands and good products, and integrated user operations, Vipshop's overall user stickiness and ARPU have continued to improve since the second half of 2021. In particular, the operational indicators of core SVIP users have performed prominently, and in 2021, the number of vipshop core SVIP active users has increased by 50% year-on-year, and its online net transaction volume accounts for 36%. SVIP users have about 8 times the ARPU of non-SVIP throughout the year, which has the characteristics of high repurchase rate, high purchasing power and high retention rate. In the future, Vipshop will promote the paid membership system to cover more high-value consumers.
Vipshop will focus on user experience, crack service pain points, and solve customer problems in 24 hours with a resolution rate of more than 97%.
Vipshop will build a comprehensive after-sales service system to provide consumers with the best shopping experience. In addition to the seven-day no-reason return, platform users can also enjoy value-added services such as fast refunds, worry-free damage, 15-day quality refunds, ten-day price guarantees, and free shipping on the past 88 yuan.
At the same time, in order to solve the long-term pain points of online shopping consumers, Vipshop will work with SF to carry out free return and exchange and door-to-door exchange services, so that consumers can achieve commodity returns and exchanges without leaving home, which greatly improves user satisfaction; in order to bring users intimate service with temperature, as of 2021, Vipshop will establish a professional customer service team of nearly 2,000 people, solve users' demands and suggestions in a timely manner, and solve customer problems within 24 hours.
Around the platform's super VIP and other high-value core users, on the basis of providing value-added services such as free shipping of self-operated goods throughout the year, free return and exchange freight, and self-operated goods "9.5% off", Vipshop will continue to upgrade the service experience, in 2021, to super VIP customers to provide 24-hour uninterrupted service, through more intimate and more professional manual customer service. This effectively improves high-value user satisfaction and further enhances user stickiness.
In terms of quality control, Vipshop takes the user as the center, adheres to the "ten guarantees of genuine products" and "nine quality control", so that the source of the goods is guaranteed, the process is strictly monitored, and the after-sales service is worry-free. At the same time, Vipshop has laid out a complete inspection system, conducting normalized sampling inspections of each brand on the platform, and the frequency and coverage of inspection goods far exceed the average level of the industry.
Vipshop will practice corporate social responsibility, devote itself to public welfare and green and low-carbon undertakings, and steadily increase its ESG-related ratings
Vipshop has always taken social responsibility as its own responsibility, continued to deepen the empowerment of women, rural revitalization, Internet public welfare innovation and other sectors, and created a series of flagship public welfare projects such as Wei Ai Mother, Wei Ai Charity Plan, and Wei Ai Workshop. As of the fourth quarter of 2021, Vipshop's public welfare investment has exceeded 346 million yuan.
As an Internet company that has long been committed to women's public welfare, Vipshop will continue to explore the innovative model of "Internet + public welfare", empower women in difficult situations, and create a love-only mother project that focuses on serving single-parent families in difficult situations. The Only Love Mom Project has reduced the burden and increased the energy of 50,000 single-parent families in distress, providing psychological counseling, legal aid, mutual aid groups, growth courses and other fields.
In addition, Vipshop takes the "Only Love Charity Plan" as a link to provide users with convenient and diversified public welfare participation methods, build a port for diversified innovation and collaboration, explore the "e-commerce + public welfare" model that can participate in public welfare by shopping, practice "do small good, become big love", and create a platform for integration and love. As of December 2021, the Only Love Charity Program has launched more than 30 high-quality public welfare projects in conjunction with all sectors of society, with more than 10.91 million members participating, and donating more than 15.6 billion Only Love.
At the same time, Vipshop actively pursues sustainable development, and the ESG-related rating has been steadily improved. In 2021, the 2020 Sustainability Index assessment released by Dow Jones showed that Vipshop will maintain its leading position in the global retail industry on a number of issues such as "packaging" and "privacy protection"; in the same year, Vipshop will upgrade its MSCI ESG rating to A.
In terms of environmental responsibility, Vipshop adheres to the path of green e-commerce, and runs the concept of green development through the entire life cycle of office, warehousing, packaging and transportation, and continues to reduce its carbon footprint. At the same time, it plays the role of a platform enterprise, pays attention to the environmental responsibility of the supply chain, and drives the continuous improvement of the level of environmental responsibility in the value chain.
The "14th Five-Year Plan for E-commerce Development" clarifies the positioning and core mission of the high-quality development of e-commerce in mainland China. Under the guidance of the industry's high-quality development goals, Vipshop will continue to focus on the good goods strategy, attract more brands to provide good goods, continue to optimize operational capabilities, and promote the company to achieve high quality and sustainable development.