Chinese online retailer reports huge revenue growth despite challenging market
Jumei has filed its annual report for the financial year ending 31 December 2015. China’s leading beauty retailer generated net revenue of RMB7.3bn, up 88.9% from the previous year, while it also had 16 million active users for the full year.
Jumei reported working with 2,091 different suppliers and third-party merchants across 2015 as it looked to expand into health and baby care products. Last year, Jumei also expanded its delivery network by working with China’s state-owned postal services in remote areas, while it focused on building its mobile site, with 79.5% of sales generated through mobile devices in 2015.
In a statement, the company said: “We believe that our internet platform is a trusted destination for consumers to discover and purchase branded beauty products.” In 2015, Jumei ended its marketplace service, which previously saw third parties selling products on its site. This service has now been largely stopped, with third party sales contributing just 3.1% of total net revenue at Jumei. To help boost sales elsewhere, Jumei has offered several exclusive products on its site, including the Hippo Family face mask, which it says have been one of its most popular products since adding them to its range.
Jumei is still China’s leading online retailer of beauty products, although it admitted that the region’s beauty retail market remains “fragmented and highly competitive”. It cited AS Watson and Sephora as two of its biggest competitors as well as online giants Alibaba and Amazon, which runs JD.com in the region.
Last year, Jumei’s Founder and CEO, Leo Chen, attributed the company’s strong growth to “shifting consumption patterns” in China. He said that consumers were upgrading their tastes and selecting more expensive products.