Vipshop profits from strong customer support

Top executives predict further growth in sales and consumers

Editor's note:After Vipshop released its first quarter financial data for 2016 on May 18, the company's CEO Shen Ya and chief financial officer Yang Donghao answered questions from analysts.

How will China's macro economic situation affect Vipshop's business and what competition has the company encountered in promoting the growth of users?

Shen:Viewed from a macro perspective, China's consumer market is not so pessimistic. Although real estate and automobile industries have suffered sluggish consumption, we didn't see the phenomenon that consumers stopped buying clothes and cosmetics.

Vipshop's current growth is stable, as well as forecasts of its future business. The company focuses on flash sales, which we believe have great market potential in the future.

Vipshop has adjusted its market structure since the fourth quarter of last year and witnessed a considerable increase in the number of new customers this year.

Why did Vipshop have increased capital expenditure?

Yang:It was because Vipshop added more warehouses. The company has invested 400 million yuan ($61.14 million) in warehouse construction, including 90 million yuan to buy land and 40 million yuan to purchase equipment.

Vipshop's users increased 53 percent in the first quarter. How will you maintain such rapid growth?

Shen:Vipshop put great value on growth of new users. The company uses various means to obtain users, such as accurately targeted advertising, new media and TV commercials. It has also adjusted its products and brands, attracting better customers with more popular brands and competitive prices.