You got a point there .. that was the fear when VIPS was IPO'd. But did I bet that assumption was wrong for a leader with improving cash flows and improving margins and a HUGE growth. A company like this in internet bubble days could have come out at $2000 a share price (remember those 1999/2000 days?). But VIPS came out at $6 on the opposite end of that spectrum. More importantly VIPS has been proving itself to be a leader and generated 1st ever profit in Q3 with more profits and growth expected in Q4.
With the model being proven out, do you think VIPS could skyrocket to bubble days of $2000 a share? May be not in the immediate future. May be perhaps when Shanghai index it at peak of 10000 and all China is the raze of the day and VIPS has over $10B in revenues and huge profits and growth .... Say in 5 to 10 years? Can you also imagine a scenario where VIPS could be 2000 or 100 bagger from here at 100B valuation on 10 to 20B revenues and 80% growth rate?
this model is proven and vips is the market leader. they have more than 500 brands!
it is almost impossible to copy it - plenty of contracts!
and brands don't want to sell through insignificant other shops - this would imperal the high quality brands
I believe - one of the best investments in internet sector.
actually the shareprice is cheap