|View printer-friendly version|
Vipshop Responds to Recent Allegations
User Traffic Data:
The allegations stipulate that user traffic, as measured by Alexa, does not match with the data provided by the Company. Alexa tracks internet traffic through browser based tool-bar plug-ins, but many Chinese internet users do not have Alexa plug-ins on their computers. Therefore, Alexa's user traffic data cited in the allegations under-estimate Vipshop.com's actual user traffic, which has grown rapidly.
The allegations question the Company's rapid growth without the number of website visitors increasing. This conclusion is very misleading in that it failed to take into account the Company's actual user traffic growth as well as other factors in the Company's operation that drive business growth, including growth in total active customers and increase in the average order size, which was in turn due to the Company's continued efforts to optimize brand and product selection, increase the number of sales events and increase the number of SKUs available on the Company's website, all in an effort to enhance customer experience.
The allegations challenge the Company's decreased fulfillment expenses as a percentage of total revenues despite its opening of new regional logistics centers. All these logistics centers are leased and the related expenses have been recognized in fulfillment expenses. In addition, the Company continued to shift more fulfillment needs to quality regional and local couriers, which generally have lower average delivery charges than national delivery companies. The above factors coupled with the Company's improved operational efficiency have led to the decrease in the fulfillment expenses as a percentage of total revenues.
Certain Other Claims:
The allegations stipulate that the Company did not fully disclose related party transactions. The Company has made explicit and transparent disclosures in the relevant filings with the
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as
Investor Relations Contact, Millicent Tu, Vipshop Holdings Limited, +86 (20) 2233-0732, IR@Vipshop.com; Jeremy Peruski, ICR, Inc., +1 646-405-4866, IR@Vipshop.com