According to the standards, the net profit attributable to shareholders is RMB 684.8 million(approximately US$96.7 million), the figure for the same period last year was RMB 872.3 million; gross profit was 36 (approximately US$510.8 million), compared with RMB 4.4 billion in the same period last year.
The offline clothing industry is obviously more difficult. In the first half of 2020, the plan is to wait for the offline sales of the clothing brands that are selling well in the spring and summer. Overstock, passenger flow and cash flow are all making their survival in the first quarter a problem.
National Bureau of Statistics Data show that as of the end of May this year, the accounts receivable of industrial enterprises above designated size were 15.13 trillion yuan, an increase of 13% year-on-year; the inventory of finished products was 4.47 trillion yuan, an increase of 9%. The inventory turnover days of finished products were 20.9 days, an increase of 3 days compared to the same period last year; the average payback period of accounts receivable was 58.8 days, an increase of 10.4 days compared to the same period last year.
Before that, there was an iResearch report in 2019 that showed that the inventory e-commerce market has reached tens of billions, and it is expected that the market size of the entire track will reach 150 billion by 2022.
For these clothing brands, whether it is from the perspective of product iteration, inventory backlog, or capital turnover, destocking after the epidemic has become an even more urgent need. “After the epidemic, the inventory of the entire industry has increased, and suppliers are willing to offer better products and lower discounts. This bonus will be at least by the end of this year, and we do see huge products.” Vipshop Chairman and CEO Shen Ya once said in a conference call after the Q1 earnings report.
Sure enough, as people’s lives and the clothing industry resume normal operations, Vipshop’s performance in the second quarter also rebounded like the data shown at the beginning. At the same time, shopping festivals such as “6.18” and “8.18” The blessing of Vipshop has given Vipshop more opportunities to increase discounts and digest inventory for apparel companies.
However, facing the seemingly promising inventory e-commerce market, for Vipshop, which has been continuously profitable, how long and how much money will actually be the next proposition.