Published
Sep 18, 2011
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VIPStore.com grows in China

Published
Sep 18, 2011

In the space of 2 years, Chinese members only flash-sale site VIPStore.com has become one of the most preferred e-commerce platforms for luxury and high-end products. Between eight to ten new partnerships with international fashion brands are established every month.

VIPStore.com
VIPStore.com

By buying products directly from the brands and providing its members time-limited offers of high discounts (like other websites such as showroomprivé.com or vente-privée.com), VIPStore quickly became popular among Chinese male and female customers, who are very fond of designer labels. Today, the website has an extensive product offering that ranges from clothes to jewellery, perfumes, accessories, make up and even lighters, among other products that are trendy at the time.

According to statistics published by EnfoDesk, online transactions for luxury goods in China reached approximately 531 million dollars (373 million euros) in the second quarter of 2011. The full-year figure is expected to reach approx. 2.5 billion dollars (1.7 billion euros). The online retailer has already established partnerships with more than 500 luxury goods manufacturers and distributors worldwide, including Dior, Prada, Gucci, Burberry, Estee Lauder and Chloe." VIPStore CEO Yang Peifeng said, "Second-and third-tier luxury brands that are already established in the European and American markets are of excellent quality despite their lack of name brand recognition, while some of them, including certain designer brands, are, in fact, very high end and can be more expensive than some top-tier ones. The entry of these brands into China will spur the diversification and differentiation of luxury brands while, to some extent, weakening the competition among industry players."

In May this year, VIPStore.com had 1.5 million registered members, who for the most part are young, white-collar workers between the ages of 20 and 40. According to its financial results, the company turned over 2.7 million euros in sales in May, 2.2 million in April and 1 million in March. According to Yang Peifeng, VIPStore’s revenue for fiscal 2011 could reach from 33 to 44 million euros.

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