EUR 224.95 For Business Accounts Only

VIPS: Ongoing Customer Acquisition And Retention Efforts Driving Better Operating Metrics In 1Q21

VIPS will report 1Q21 results on May 19th before the markets open with a 7:30am conference call. We are positive into its 1Q21 performance due to the growth of active users and average ticket size. VIPS continues its efforts on customer acquisition by sponsoring popular dramas or variety shows. These shows are carefully selected, and the audience fit into the same profiles as VIPS’s consumers. Once VIPS recruits new customers, its brands, discounts and other business operational practices serve as a way to retain these customers. We believe the company’s efforts during the last year continue to pay off in 1Q21 as its active customer base is likely to grow 59.4% Y/Y in 1Q21E, based on our data and calculations. As a result, VIPS’s total revenue in 1Q21E is likely to be better than the high end of its guidance at range of RMB27.2B – 28.2B.