Vipshop, one of the top cross-border e-commerce retail platforms in China, had the net revenue of RMB19.9 billion (US$3.2 billion) in Q1 2018 according to its unaudited financial results, up 24.6% over Q1 2017, primarily driven by the improvement in the average revenue per customer. Gross profit grew by 8.5% year-on-year to RMB4.0 billion (US$639.2 million) from RMB3.7 billion in Q1 2017. Total orders increased by 25% to 90.2 million from 72.1 million in Q1 2017.
In Q1 2018, net income attributable to Vipshop’s shareholders was RMB529.7 million (US$84.5 million), as compared with RMB551.9 million in Q1 2017. Non-GAAP net income attributable to Vipshop’s shareholders for the first quarter of 2018 was RMB727.7 million (US$116.0 million), as compared with RMB799.4 million in Q1 2017.
Vipshop obtained 56.6 million active customers for the trailing twelve months ended March 31, 2018. In Q1 2018, the average revenue per customer increased by approximately 25% year-on-year, driven by the 25% year-over-year increase in the average number of orders per customer. 86% of customers were repeat customers, up from 77% in Q1 2017, and approximately 96% of orders were placed by repeat customers, up from 92% in Q1 2017.
Vipshop made further progress with strategic collaboration with Tencent and JD.com in Q1 2018, opening up the entry on JD’s app homepage in mid-March and the WeChat wallet entry in early April.
Vipshop’s JD flagship store attracted approximately half a million followers within the first two months of launching. The majority of customers from the JD channel are new customers, and male apparel is the strongest category. Vipshop’s WeChat mini-program attracts many younger and more male-concentrated customers, compared with its app users.
On May 8, 2018, L’Oréal Paris launched its official WeChat mini-program, which was developed and operated by Vipshop.
In Q1 2018, Vipshop added a overseas warehouse in Frankfurt, Germany, bringing the Company’s total international warehousing capacity to approximately 59,000 square meters. Vipshop currently has overseas warehouses in nine locations, including Hong Kong, New York, Paris, Milan, London, Seoul, Tokyo, Sydney, and Frankfurt. As of March 31, 2018, the Company has approximately 2.8 million square meters of total warehousing space, of which around 1.8 million square meters are owned by Vipshop.
During Q1 2018, Vipshop delivered approximately 99% of its orders through its in-house last mile delivery network, up from 93% in Q1 2017. More than 81% of customer returns were handled directly by Vipshop’s in-house last mile delivery network, up from 67% in Q1 2017.
As of March 31, 2018, close to 1.5 million customers enrolled in Vipshop’s Super VIP Paid Membership Program, representing a 54% increase sequentially.
Vipshop’s cross-border business was particularly strong during this year’s 4.19 promotional event, with sales increasing by 43% year over year. Vipshop recently added a number of popular domestic and international brands to its platform, including Furla, Stella McCartney, and Dodo.
China cross-border retail e-commerce sales are expected to exceed US$115 billion in 2018 with a growth rate of over 15% YoY and reach US$144 billion in by 2021. More forecast here ».