Total net sales rise to US$273m primarily due to a 23.8% increase in active customers
China's leading online retailer of beauty products, Jumei, has revealed its total net gross merchandise volume increased by 31.4% year-on-year to US$273m, in its Q3 2014 results.
The retailer said this is largely due to a 23.8% increase in the number of active customers and a 14.1% increase in total orders.
Net revenues also shot up 28% year-on-year to $157.7m, while gross profit as a percentage of net revenues decreased to 38% from 43.7% in the same period of 2013. Net income attributable to ordinary shareholders increased by 88.6% year-on-year to $19.5m.
Leo Chen, founder and CEO of Jumei, said: “We just delivered the tenth consecutive quarter of strong growth and profitability. Despite this being a quarter of transition, we saw net income attributable to ordinary shareholders increase by 88.6% and mobile transactions as percentage of net GMV reach 57%. As we communicated to investors during our IPO roadshow, we are working to eventually move most of our beauty product marketplace sales to merchandise sales. We began this move in September and expect to complete it by the end of this year. Marketplace beauty product sales will then be replaced by direct brand cooperation, department store purchases and Jumei Global. Jumei Global was officially launched in September and has quickly ramped up. This strategic transition gives us further control over the entire beauty supply chain and further strengthens our quality control.
"Our company strives for zero tolerance when it comes to quality issues and we have long been setting industry standards for quality control. In October, we commenced operations at our in-house spectrum analysis lab. As of November, the lab is routinely testing around 300 skus per month, including the skus from customer returns.
“We also continue to develop and reinforce the Authentic Beauty Product Alliance (ABPA). As of 30 September the ABPA had 102 members. Since the second quarter of this year, brands that have joined the ABPA include Elizabeth Arden, Whoo, Aupres, Jurlique, Chando, Za, and others.”