Research On Profit Model And Financial Evaluation Of Vipshop

Nowadays, most of B2 C e-commerce enterprises are committed to expanding commodity category, and perfecting the infrastructure, with various technological means to promote online shopping market to extend to new field. Online shopping market is just like a piece of cake, which more and more people want to share. B2 C e-commerce enterprise remains essentially belongs to the retail sector, from a business perspective, it is better than traditional retail stores and there is no advantage, along with the increase in market participants, while the trade scale rapid growth, but is still common in B2 C e-commerce enterprises difficult to profit. Today, "Matthew effect" in the field of B2 C e-commerce has been obvious, B2 C e-commerce enterprise must recognize that they can not blindly pursue scale effect. What they need is to find an accurate market position, and characteristic management, and build a suitable profit model and market development. As the first domestic enterprise achieve profitability of B2 C e-commerce, the exploration of Vipshop’s profit model could be used to for the construction of other B2 C e-commerce enterprise profit model and improvement.This article mainly uses the basic theory of profit model. Based on the analysis of the whole B2 C e-commerce market, then carry on the specialized research on Vipshop profit model from all aspects of the operation of Vipshop, last we evaluate its profit model. from two aspects of profitability and earnings quality with three years of financial data from 2012 to 2014.we have found from the case study, the reason why Vipshop takes the lead to achieve the profit in the field of B2 C e-commerce is mainly due to its profit model has great superiority. Embodies the superiority of the following three points: Firstly, it can adapt to the characteristics of the Chinese market, and lock for its own profit object- in the development of the domestic brand lovers of second and third tier cities. Secondly, in order to cater to the consumption psychology of target customer, it adopts unique mode of network sale "brand + low price + flash sales", thereby increasing the customer stickiness, provides the guarantee for the continuous source of profits. Thirdly, unique sales after the first payment of the purchase mode and "mains + be born with" light logistics mode enhance its profit barrier, which gain a competitive advantage. Because of the unique profit model, in terms of profitability and earnings quality Vipshop can be better than the other B2 C e-commerce enterprises in the fierce competition in the field of electricity. From what has been discussed above, from the merchandise category expansion, a network of business ecosystem building, the good faith management, the fan operating, this artical put forward Suggestions on the development of Vipshop. Finally, as a model of B2 C industry, Vipshop’s experience is worth using for reference.