Case Study

Discount Retailer Innovates Online Model

Source: Dell Inc.

Vipshop Logo

Vipshop (China) Co., Ltd. (Vipshop) is China’s leading online discount retailer. Listed on the New York Stock Exchange (NYSE:VIPS), the company offers high quality and popular branded products during daily flash sale periods at significantly discounted prices to consumers throughout China.

With the website attracting millions of visitors, and with thousands of transactions made every second, the company needed to improve the performance and capacity of their systems to enable long-term growth and profitability.

To create a compelling reason to buy, visitors are encouraged to frequently check the site for flash sales on a finite quantity of goods lasting only a short time. Through this model Vipshop has managed to combine the advantages of e-commerce with discount sales and currently has 12.1 million registered members and over 4.9 million cumulative customers.

As a purely e-commerce business, Vipshop relies on having a high performance platform to reduce the time taken per transaction. It must maximize the efficiency of all systems in order to increase the profit margin per transaction. Daniel Kao, CTO, Vipshop (China) Co., Ltd., says, “Our platform must be able to support large -scale e-commerce and scale to meet our plans for the long-term success of the company.”

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