Vipshop Holdings Limited (NYSE:VIPS) Q3 2018 Earnings Conference Call Transcript
Nov 15, 2018 • 08:00 am ET
Ladies and gentlemen, good day, everyone, and welcome to Vipshop Holdings Limited's Third Quarter 2018 Earnings Conference Call. At this point, I would like to turn the call to Ms. Jessie Fan, Vipshop's Senior Manager of IR. Please proceed.
Thank you, operator. Hello, everyone, and thank you for joining Vipshop's third quarter 2018 earnings conference call. (Forward-Looking Cautionary Statements) Joining us on today's call are Eric Shen, our Co-founder, Chairman and CEO; and Donghao Yang, our CFO. At this time, I would like to turn the call over to Mr. Eric Shen.
Good morning, and good evening, everyone. Welcome, and thank you for joining our third quarter 2018 earnings conference call. During the quarter, our total active customers grew by 11% year-over-year, showing continued improvement in our customer acquisition efficiency, as well as synergies from the Tencent and the JD partnership business. New customers from Tencent and JD accounted for around 22% of our total new customers in the third quarter. Our ARPU also increased year-over-year, which was a result of our strong execution, especially in our CRM program. As of the end of September, around 2.3 million customers joined our Super VIP Paid Membership Program, which was a 21% increase quarter-over-quarter. We continue to work with Tencent Video to unlock the value of the joint membership delivering more benefits to our paid members. Currently, we are making some adjustment in our product offering, reducing our investment into low margin, more standardized categories. Our core competence lies in our ability to serve our female customers in fashion-related categories. These adjustments will allow us to focus on what Vipshop does best, which will be beneficial for our long-term growth and margin trend. Looking ahead, we will continue to focus on our merchandising strategy, which will drive our future success. We aim to further deepen our expertise in this discount retailing, which will generate sustainable value for our customers, suppliers and shareholders over the long term. At this point, let me hand over the call to our CFO, Donghao Yang, so that he may discuss our strategies in more detail and go over our operational and the financial result.