Value Position
Vipshop is an innovative store that has radically changed the approach to selling and buying products. Flash sales are precisely the kind of business model that allows getting high-quality goods at the lowest possible prices. The brand’s value proposition can be considered unique, both for regular shoppers and brands. Unlike other companies, this store guarantees a particular emotion when buying online. It offers everyday designer items and other stocks of the highest quality at a shocking discount compared to the retail prices. The merchandise and list of brands are constantly changing and are only available on the site for a limited period to keep customers excited and enthused (Business Overview, 2021). Vipshop also offers insurance and constantly optimizes its merchandise on sale, guided by its methods. Those items that seem out of reach and budget become reality gratitude to this store.
Additionally, Vipshop promises exclusive items and guarantees this characteristic with their limited quantities. Customers have a confined number of purchases of one product type to provide equal access to all buyers. Concerning brands, they get the potential for new consumer demand for goods and services. They can monetize their production and inventory, as well as enhance their reputation. Moreover, brands receive feedback on their products and collect transactional data to improve their development, sales, and marketing strategies. The primary purpose of this Chinese company policy is to increase buyer awareness and market expansion. This way, people get to know and have the opportunity to try different products that they could not afford before (Business Overview, 2021). Vipshop offers several advantages for those who have registered on the site and become club members. Such clients can order and obtain access to photos and sections to make the shopping process even faster and more comfortable.
Customer Segments
Vipshop’s focus on discounts for customers creates additional benefits for businesses in terms of attracting clients. At the same time, the expanded production and popularity of the brand among the people enables the company to generate a loyal buyer base. Moreover, constant discounts and the application of Internet technologies stimulate the more significant activity of regular customers and the constant involvement of new ones. It is essential to note that the firm proposes products for all categories of clients. Thus, the engagement of females of different ages is through the offer of clothing for both pregnant women and the elderly. Although, the corporation produces casual clothes, jeans, and evening dresses that will satisfy females who choose distinctive styles. The business suggests a variety of accessories and cosmetics for different ages, increasing the segment of women’s involvement (Business Overview, 2021). At the same time, influences on the company’s sales are performed by men because they can renew their sports and office wardrobe in one store.
However, in addition to men’s and women’s goods, the organization offers children’s furniture, clothing, and toys. That is why parents often prefer Vipshop to meet their children’s demands. Thus, the company equally proposes products that attract buyers of all ages and genders. Furthermore, a significant advantage is that Vipshop Holdings offers luxury in addition to general goods (Business Overview, 2021). Accordingly, home commodities or products can afford to buy absolutely all classes of the population. This business policy benefits to increase the number of regular customers and attract new ones.
Reference
Business Overview. (2021). VIPSHOP Holdings Limited.