vip.com Luncheon Takeaways

Executive Summary

The Fung Global Retail & Technology team attended the Vipshop luncheon hosted by Supply Chain and Logistics Professionals (SCLP) on January 20, 2017. Filippo Gori, Business Development Director for International Brands at Vipshop discussed the opportunities and challenges that international fashion brands face when selling to Chinese consumers. In this report, we summarize the key takeaways from the luncheon.

• Borrowing from his breadth of experience marketing luxury brands to Chinese consumers, Filippo Gori summarized what he sees as the key ways international brands can profit from the Chinese consumer market.
• With the rise of the upper middle class and increase in spending power, the Chinese consumer market presents many opportunities, disproportionately benefiting international brands and verticals such as fashion.
• When shopping online, Chinese consumers typically expect next-day delivery compared to western consumers who are receptive to different service levels. At the same time, they are price sensitive and aware of brands’ premium pricing.
• Vipshop is well positioned to benefit from the rise of online consumption in China, on the back of its big data and business-intelligence capabilities, regional warehouse and last-mile delivery network and ability to deliver value for brands and customers.