Wall Street Transcript Interview with Donghao Yang, the Chief Financial Officer of Vipshop Holdings Ltd. (VIPS)

Wall Street Transcript

67 WALL STREET, New York - October 13, 2012 - The Wall Street Transcript has just published its Internet Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Increased Mobile Content Traffic - Chinese Online Monetization Trends - Internet Infrastructure and Services Consolidation - Enterprise Adoption of Cloud Computing - Social Networking Economics

Companies include: Vipshop Holdings Ltd. (VIPS) and many others.

In the following excerpt from the Internet Services Report, the CFO of Vipshop Holdings discusses the outlook for his company for investors:

TWST: Please give us a brief overview of Vipshop Holdings, including the company's history.

Mr. Yang: Vipshop Holdings was first founded in August 2008. As China's leading online discount retailer, Vipshop's unique business model offers limited quantities of discounted products online, otherwise known as "flash sales," to consumers in China. Over the past four years, we have accumulated approximately 25 million registered members and have worked with approximately 3,500 brands. In the second quarter of 2012, over 70% of our 1.5 million active customers were repeat customers.

As for our brand partners, we work with well-known and popular brands in China to leverage our channel advantages to monetize large volumes of off-season excess inventory. We help brands increase consumer awareness of their products and reach potential consumers throughout China. Today, we have signed exclusive deals with over 500 brands.

What's more, our founders and management team have strong merchandising expertise, which enables us to select the right brands and have the appropriate product mix for our daily sales events, ensuring they appeal to our valued customers. Our target customer base mostly consists of urban, educated, middle-class consumers in China who are seeking lifestyle enhancements, 75% of which are young, female, white-collar workers. We have built a highly engaged and loyal customer base that drives our sales growth, while also enabling us to attract new customers primarily through word-of-mouth referrals.

TWST: The Chinese e-commerce industry is experiencing many important transitions in 2012, including expanded consolidation. Who are the competitors for Vipshop Holdings, and what do you see as the company's competitive advantages?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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