KupiVip Group: Results of 2015
The gross turnover of the Russian online-retailer amounted to 16.5 billion rubles including VAT. KupiVip Group finished the year with an operating profit having reached the EBITDA ratio of +1% at the group level and having become a fully profitable business.
- The growth in orders made +45% in 2015 vs. previous year;
- The growth in the number of users amounted to +30%;
- The average purchase amount in 2015 made 8,500 - 10,000 rubles during the year depending on the season.
Representatives of KupiVip.ru explain the growth of the business indicators by the attractiveness of the key business-model of the group. The principal business of the company operates in the off-price format, buying surplus stocks of goods from the world fashion brands at special prices and selling them via websites and mobile platforms of the group as special offers with discounts from 30 to 90%. During crisis periods, more and more players appear in the traditional fashion retail sector, who need to adjust their warehouse surpluses. KupiVip.ru comes to the rescue of such retailers helping to sell off their collections within a short time.The interest of Russians to SALE purchases at a bargain price has also increased significantly. For instance, according to the results of the joint research of KupiVip Group and FCG conducted in mid-2015, the Russians made 46% of their purchases with discounts*.
- Vladimir Kholyaznikov, CEO of KupiVip Group
KupiVip.ru was established during crisis in 2008. Our experience of operations in complicated economic environment has indicated that people do not give up purchases in crisis times. But they start to approach shopping in a very conscientious way, so our task was to make an offer that would meet their needs. That was why we chose the format of the off-price outlet, which has long since been developed in Europe and USA and whose essence is to offer buyers a wide range of goods from the actual collections of well-known brands at the most favorable price. Also, the attractiveness of our principal model for the buyer is in that 50% of the product range offered on the site is the goods from the current collections. Owing to that we experience higher interest on the part of "bargain hunters", because no one would like to pay more for the brand goods".
In 2015, the company made a number of qualitative steps: expanded the range of goods offered in the segment of women's wear and household goods, significantly increased the number of active suppliers. Considerable investment was made in the development of the proprietary system of deliveries, including in the regions. Also, in 2015 KupiVip.ru Group took first steps to bring the key business to the traditional format of retail trade: the first shop under the KupiVip trade mark was inaugurated in Gagarinsky Trade and Amusement Center in August.Still another business line that the company was developing pro-actively in 2015 was mobile purchases. The growth of their share amounted to 40%, the KupiVip.ru application was downloaded by about 300,000 persons, 150,000 of which are active buyers. The traffic from mobile devices reached 35% in 2015. The company plans to bring these indicators to 40% during next year.*The research was conducted in November 2015 jointly with FCG among the KupiVip.ru users, the sample group included 5,000 persons.