Vip.Com Earnings Interpretation: Competitors Are Increasing

Last Thursday, the sale of electricity supplier vip.com released Q4 earnings report. In the fourth quarter, the total net revenue grew 65% to 13 billion 900 million yuan over the same period, exceeding the average of 12 billion 300 million analysts expected by 10 analysts in Wall Street.

Belong to

The net profit of ordinary shareholders increased 45% to 506 million yuan, also exceeding the investors' expectations.

According to US GAAP, vip.com's operating profit in the fourth quarter was 966 million yuan, an increase of 96% over the 493 million yuan of the same period last year.

According to the logic of A shares, the performance is at least up to three trading boards. However, although the earnings announcement is so beautiful, it is inevitable to follow the overall market as a whole.

How to analyze vip.com, East elder brother thinks that there are three main problems: how many growth space do the new users have first? Secondly, how to ensure the retention rate of the old customers under the pressure of competition? Thirdly, can the user's activity be increased and consumption increased?

Six months ago, East elder brother wrote that large electricity providers are generally facing the pressure to obtain incremental traffic. One of the main reasons for the third quarter vip.com miss's failure is the slow down of new users.

In the fourth quarter, the number of active users increased by 58% to 19 million 800 thousand compared with the same period last year.

On Friday night, he exchanged with a friend who came out of Tmall. He just formed a new company called the "net red" concept and got nearly 20 million preA financing.

According to friends' data, in 2015, the net red trading volume was 200-300 billion, accounting for almost 1% of the paction volume of Ali, and it is expected to increase to 2000-3000 billion in three years.

The market has a pessimistic aspect, but in the market change, there is a positive side. The key is whether we can cater for the changes.

Consumption is upgrading, consumers pay more attention to brand, and pay more attention to personalization. Continuous innovation can find new market growth points.

At present, the total number of active users in vip.com is 36 million 600 thousand, while the number of online shoppers in the whole network is more than 400 million. There is still much room for growth.

In the clothing market of 2 trillion, the development potential of vip.com with 40 billion orders is still huge.

It is not so pessimistic for users' ceilings. As the base size is bigger, it can't be as much as 100% over the past year, but maintaining 30-40% speed is still very impressive.

Although competition is intensifying, users still choose to stay in vip.com.

It has a significant impact on vip.com.

In order to strengthen the strategy of focusing on core sale business, vip.com began to slash its low profit group buying business from the third quarter of 2014.

Do not count

Vip.com's core sale business increased by 76% and 80% in the fourth quarter, compared with the same period last year.

On mobile platforms, the number of active users and total orders in vip.com sales in the fourth quarter increased by 124% and 126% respectively over the same period last year.

Jingdong is actively entering the sale business. There are also rolls of leather net, discount 800, rice folding net and so on. However, only two or three years ago, only vip.com was doing it, saying no competition was impossible.

But in the fourth quarter, the number of new customers added to vip.com was 8 million 400 thousand, and the number of repeat customers was 14 million 700 thousand, accounting for 19 million 800 thousand of the total quarter active customers 74.2%.

This is a very important indicator. 100 users who come to vip.com shopping have 74.2 customers to stay for twice consumption.

Of course, it also has something to do with vip.com's efforts to enhance its self built logistics and improve user experience. By the fourth quarter, 83% of orders were distributed through their own logistics.

Self built logistics delivery experience is better, and also convenient for users to return goods. During holidays, there is no need to worry about the third party logistics paralysis affecting the user experience. In the double eleven, the growth of 300% is able to retain users.

Listen to vip.com friends said that through self built logistics, in Guizhou province vip.com realized the whole territory without blind spot distribution, sent to the village level, a lot of postal things are vip.com sent.