As one of the key events of the 4th China International Consumer Goods Expo (referred to as "Consumer Expo"), the 2024 China (Hainan) High-end Consumer Goods Conference was held at the Hainan International Convention and Exhibition Center on April 14th. During the conference, Sun Gefei, Vice President of Vipshop, pointed out that with consumers becoming more rational and pragmatic, the discount retail market has opened up new growth opportunities. Vipshop will leverage international exhibitions such as the Consumer Expo to strengthen cooperation with international brands.
Image: Sun Gefei, Vice President of Vipshop
Discussing the outlook for the domestic consumption market, Sun Gefei expressed that with rational consumption becoming the mainstream trend, discount retailing aligns better with consumers' desire for both quality and value for money. Outlets, discount supermarkets, and focused brand sales like Vipshop have all experienced varying degrees of consumer enthusiasm.
Taking outlets as an example, industry data shows that the overall scale of China's outlet industry is expected to exceed 160 billion CNY in 2023. Nearly 50 outlets (excluding Hong Kong, Macao, and Taiwan) have surpassed the 1 billion CNY mark, reaching a historic high. Guotai Junan Securities predicts that by 2030, the market size of the domestic discount retail industry is expected to reach 4.58 trillion CNY, with a compound annual growth rate (CAGR) of about 12.7% from 2023 to 2030.
Further elaborating, Sun stated, "In 2023, sales of international high-end brands on our platform increased by 24% year-on-year, with wearable goods being particularly popular. This indicates that users increasingly prefer to purchase high-end brands through flash sale channels, spending less and getting better quality."
According to the "2024 Vipshop Spring/Summer Trend White Paper," among consumers of wearable goods, there is a significant increase in the "high-quality," "outdoor sports," and "trendy fashion" consumer segments, all of which have strong purchasing power. Users are more concerned about the quality and durability of products and are more willing to purchase high-end brands that can be used for a long time. Trendy brands aligned with fashion trends are also highly sought after.
"To meet the growing demand for high-quality and diversified consumption from users, last year our buying team introduced over 1,500 new brands to the platform, including many trendy and international brands, continuously enriching the variety of brands and products on the platform," she said.
It is understood that this year, Vipshop participated in the Consumer Expo for the first time with dual identities as exhibitors and buyers, and launched the V-Global global investment plan. Sun Gefei stated, "We will actively use international exhibitions to find potential partners, hoping to attract more high-quality global brands to join Vipshop and explore opportunities for the development of brand flash sale markets together."
