VIPshop buys Chinese outlet malls

1 min readUpdated Jun 4, 2025Jul 30, 201911:15 PM

In this article (5)

Discount e-commerce platform Vipshop has acquired a chain of Chinese outlet malls.

The online business has paid RMB290 million (US$42 million) for Shan Shan, extending its offline footprint.

The Tencent and JD-backed site has been making strong moves to trade offline since opening a store in Beijing last October, and has gone on to launch retail outlets in Guangzhou, Changsha, Shenyang, Tianjin, and Hefei. The new acquisition adds five outlet malls to VIPShop’s network in Taiyuan, Harbin, Zhengzhou, Nanchang, and Ningbo, with five more outlets in the works.

“This represents another milestone in our efforts to explore online and offline integration in our core business,” said Vipshop founder Eric Shen. “Through this highly strategic transaction, we will gain presence in the offline outlet business in China, which further enhances our ecosystem and fortifies our leading position in China’s discount retail segment.”

Vipshop’s first 2019 financial quarter saw it take in RMB21.3 billion (US$3.1 billion) in revenues, providing a net income of RMB872.3 million ($127 million).

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What this means

Vipshop's acquisition of Shan Shan's outlet malls represents a bold, calculated move to cement its position in China's competitive discount retail segment. This contrasts sharply with Louis Vuitton reducing its footprint in Guiyang, showing a clear divergence in expansion strategies across market tiers. By extending its physical presence, Vipshop directly pressures other online retailers contemplating an omnichannel play, using its RMB21.3 billion Q1 revenue for aggressive expansion. The primary risk lies in effectively integrating disparate offline operations with its established e-commerce platform and maintaining its net income amidst significant investment. Executives should monitor the performance of these new malls, specifically their contribution to Vipshop’s overall gross merchandise volume, over the next 12 months.

Sarah Chen · Retail News Asia newsroom

Questions & Answers

How much did Vipshop pay for the Shan Shan outlet mall chain?

Vipshop paid RMB290 million for the Shan Shan outlet mall chain. This acquisition is a deliberate step to integrate online and offline business in China's discount retail sector.

Which cities will Vipshop's new acquisition add outlet malls in?

The acquisition adds five outlet malls to Vipshop's network in Taiyuan, Harbin, Zhengzhou, Nanchang, and Ningbo. There are also five more outlets currently in development.

What was Vipshop's financial performance in the first quarter of 2019?

In the first quarter of 2019, Vipshop reported revenues of RMB21.3 billion. This resulted in a net income of RMB872.3 million for the discount e-commerce platform.

Which other companies are backing Vipshop?

Vipshop is backed by both Tencent and JD. These companies support its strategy to expand its physical retail presence and integrate online and offline operations within its core business.

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