News / China's Vipshop sets up supply chain management company

Vipshop trucks (credit Vipshop)

NYSE-listed Chinese e-commerce company Vipshop has joined compatriot peers Alibaba and JD.com in establishing a logistics arm.

Last month, Vipshop incorporated Guangzhou Heju Supply Chain (a literal translation), whose business scope will include container leasing, recycling and the wholesale of recycled materials, according to the Chinese corporate registry.

Founded in 2008 by Eric Shen and Arthur Hong, Guangzhou-based Vipshop runs a website, VIP.com, and was listed on the NYSE in March 2012.

After Alibaba’s Tmall and JD.com, VIP.com is China’s third largest e-commerce site with more than 300m users across the country. In 2020, Vipshop’s net profit surged 47% on 2019, to $905.3m, as the Covid-19 pandemic drove online purchases.

Previously, Vipshop delivered customer orders with an in-house company, Pinjun Express, but in November 2019, Vipshop shut it down, outsourcing deliveries to compatriot logistics group SF Holdings.

Now, it may be that Vipshop is rethinking its supply chain management strategy, as Chinese consumers gravitate towards e-retailers, returning to in-house delivery solutions.

Cainiao and JD.com have expanded their local delivery infrastructure, such as pick-up stations, largely based on 5G technology and integrated communications, beyond China.