Today, vip.com announced the signing of the purchase agreement with Shanshan Group Co., Ltd. and Ningbo Xing Tong equity investment partnership (limited partnership) through a wholly owned subsidiary of Vipshop International Holdings Limited in Hongkong, acquiring 2 billion 900 million of the 100% stake in Shanshan Commercial Group Co., Ltd. in cash in the form of RMB International.

As for the considerations behind the acquisition of Shanshan business and the current development of vip.com's offline business, vip.com responded to it as follows:

　　 Why did vip.com buy Shanshan Commercial Group Co., Ltd.? What is the consideration behind it?

1. as a special sale of electricity providers, vip.com saw the opportunity to sell under the line. Since 2018, we have begun to actively sell offline sales, and have tried some offline stores in one to five cities.

2. vip.com has been considered to be online outlets, and the main business of Oteri J and vip.com is highly coordinated.

3. under the current line of traffic advantages gradually emerged, the distribution line sale is a necessary and beneficial supplement to the vip.com sale mode. The acquisition action is also an important measure for vip.com to sell the whole channel.

4. vip.com started looking for the appropriate line of outlets from early 2018. We believe that Shanshan commercial group is a very good benchmark. At present, the company has opened and operated 5 outlets, which are located in Ningbo, Taiyuan, Harbin, Zhengzhou and Nanchang, and 5 other Oteri J squares are being planned and constructed.

According to the open market data, in 2018, in the top 20 list of domestic outlets sales, Shanshan Orai monopolized four seats. And the distribution of the outlets of the Shanshan commercial group is in the 2-3 line city, while the vip.com main customer group is also mainly distributed in the 2-3 line cities. Its excellent market performance and financial status, as well as a high degree of agreement with vip.com brand sales, main customer groups and business philosophy, are important factors contributing to the acquisition.

　　 Two. What is the current layout of vip.com? What is the vision of vip.com's offline business development?

1. vip.com began to actively sell its offline sales from Q4 in 2008. It has been tested in 1-5 cities, operating well and widely welcomed by consumers.

2. vip.com will adopt big data analysis, online and offline user membership system to open up new retail initiatives, try to integrate some outlets under the pilot line, to achieve online, offline integration of all channels for sale and retail layout.