Vipshop Holdings Limited Investor Presentation

August 2012

Disclaimer
This presentation contains forward-looking statements. These statements are made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes, estimates and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Vipshops strategic and operational plans, contain forward-looking statements. Vipshop may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (SEC), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Vipshops beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Vipshops goals and strategies; Vipshops future business development, results of operations and financial condition; the expected growth of the online discount retail market in China; Vipshops ability to attract customers and brand partners and further enhance its brand recognition; Vipshops expectations regarding demand for and market acceptance of flash sales products and services; competition in the discount retail industry; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Vipshops registration statement on Form F-1, as amended, filed with the SEC. All information provided in this presentation is as of the date of this presentation, and Vipshop does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Vipshop

China's Leading Online Discount Retailer for Brands

Massive retail opportunities in China

Total estimated retail sales of US$3.3 trillion in 2012(1)

Apparel inventory accounts for approximately 50% of total apparel market(2)

No large discount retail chains or branded outlets

Total discount retail was US$15bn in 2011. with a

56.8% 11-15E CAGR(3)

Huge consumer demand

Constant supply of excess inventory

Immature offline discount retail infrastructure

Massive discount retail opportunities

Note: (1) (2) (3)

Data from Frost & Sullivan report; assuming 1 US$ = 6.378 RMB. Data from BCG report The Worlds Next E-Commerce Superpower. Data from Frost & Sullivan report; assuming 1 US$ = 6.378 RMB.

Online: the future of discount retailing in China

China's offline discount retail are extremely underdeveloped

U.S.
Large Off-price retailer

China

2,243 stores(1)

None

1,125 stores(2)

Outlets

64 outlets(3)

39 outlets(4)

Consumers in China are skipping outlet model and going directly online for discounted branded products
Note: (1) (2) (3) (4) As October 25th 2011, including 1,869 Marmaxx stores and 374 HomeGoods stores in the US, from 2011Q4 Report As of February 2012, including 1,037 dress-for-less stores and 88 dds DISCOUNTS stores in the US, from February 2012 Company Investor Overview As of March 2012, from Company Website As of March 2012, from Company factsheet

Chinas e-Commerce market growing rapidly

China discount retail sales (1)
(US$ in billions)

China B2C e-Commerce sales (1)

(US$ in billions)

China online flash sales (1)

(US$ in billions)

16.8

89.1

155.7

CAGR: 58.7%

CAGR: 73.5%

CAGR: 104.5%

59.0

105.2

11.1

38.2

70.2 5.9

24.1 14.7 21.8 9.9

41.3 3.0 1.3 0.5

2010 2011E 2012E 2013E 2014E 2015E

8.9

2010 2011E 2012E 2013E 2014E 2015E

2010 2011E 2012E 2013E 2014E 2015E

Note: (1)

Data from Frost & Sullivan report; assuming 1 US$ = 6.378 RMB

China: A more attractive market opportunity

China U.S.

Market positioning

Broad universe of popular brands for mass market

Mostly focused on high-end and luxury markets Discount / outlet retail channels saturated for mass market merchandise Well established online presence and capabilities Need to pay for inventory upfront Products can not be returned to suppliers

Competition from offline channel

Lack of well-developed discount / outlet retail channel

Brands own online presence

Largely rely on third party platforms to build online presence Limited upfront deposit Most products can be returned to suppliers

Working capital requirement

Result

Broader addressable market Better business model

6

A unique player in Chinas e-Commerce landscape

Online discount

Broad based Platforms

Market place

General B2C

Vertical focused players and online retailers

3C Shoes/bags Cosmetics Grocery Apparel

Partner with leading brands by selling their excess inventory at discount prices Unique business model partnering with brands has no direct competition
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Highly engaged and loyal customer base

Rapid increase of new active customers
( in thousands)

Rapid increase of repeat customers

( in thousands)

Rapid increase of orders placed by repeat customers

( in thousands)

69.8% 72.1% 56.2%

1,330

86.7%

91.9%

90.1%

91.3%

60.6%
66.2%

7,269 6,681

1,491 36.8%

1,462

1,054
4,664

903
725

4,256

447
255 38 249

276 155 1438

312
804 927 47 71

1,363 1,228

2009

2010

2011

2Q11

2Q12

2009

2010

2011

2Q11

2Q12

2009

2010

2011

2Q11

2Q12

Repeat customers Total active customers Repeat customer as % of total customer

Orders placed by repeat customers Total orders Orders placed by repeat customers

Preferred discount channel for popular brands

Brand partners growth over time(1)

2009 - 1H12 Increased by 28x

2,174

1,075

Clear industry leader(2)

Fast inventory monetization

Minimal brand dilution

One-stop solution for brands Professional team with deep brand knowledge

Product categories 411 76

Apparel Footwear Cosmetics Sportswear

2009

2010

2011

1H12

Accessories

Handbags

Children

Home goods

Travel

Shoppers are not loyal, but our brand partners are.

Note: (1) (2) Number of our brand partners is a cumulative number since 2009, which includes primarily brand owners, and to a lesser extent, brand distributors and resellers. As measured by total revenues in 2010, the number of registered members as of June 30, 2011 and the number of monthly unique visitors in December 2011, according to the Frost & Sullivan Report.

Operational expertise

10

Excellent merchandising

Relationship with brands

Brand selection

1
188 merchandising staff

Sales management capability

Understanding of consumers

Consumer insights

Over 3,400 brands

3
Business intelligence system

Customized marketing

Repeat brand partners

Sales events optimization

11

Differentiated logistics system

Extra process on top of traditional B2C e-Commerce (1)

Traditional B2C e-Commerce

Sales cycle

Short

Long

Sales process

Relatively fast

Relatively slow

No. of SKUs handled

Much more

Relatively few

Volume of throughput

Large

Small

Customized and more complicated logistics and warehousing system

Note: (1) Comparison on per same-size warehouse basis.

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Highly customized and seamlessly integrated IT system for flash sales

Traffic

Support huge traffic spikes

12am 10am 12pm Time 12am

Warehouse management system

Customized ERP system

CRM system

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High entry barriers

1 2

Economies of scale

First Mover Advantage

Business model

Vipshop is well positioned in Chinas online discount retail market

Operational expertise

14

Visionary management team with strong execution

Eric Shen Co-Founder, Chairman, CEO Arthur Hong Co-Founder, Vice Chairman
12+ years experience in consumer electronic products distribution Previously Chairman of Societe Europe Pacifique Distribution 18+ years experience in consumer electronic products distribution Previously Chairman of Guangzhou NEM Import and Export Co., Ltd. EMBA from Cheung Kong Graduate School of Business

Donghao Yang Chief Financial Officer

12+ years experience in finance Previously CFO of Synutra International Inc (NASDAQ: SYUT) and Tyson Foods (NYSE: TSN) Greater China MBA from the Harvard Business School

Alex Jiang Chief Operating Officer

20+ years of experience in Chinas retail sector Previously VP of Dangdang.com (NYSE: DANG) and Founder / Director of E-elephant Consulting Company Limited Bachelors degree from Chongqing Business School

Maggie Hung VP, Merchandising

20+ years experience in merchandise retail Previously VP of Grand Pacific Mall and GM of Grand Ocean Department Store in Nanjing Bachelors degree from Ling Tung University

Mr. Daniel Kao Chief Technology Officer

16 + years experience with leading e-commerce and Internet companies in the US and China Previously director of site operation and quality engineering at eBay Inc Bachelors degree in computer science from Iowa State University

Yizhi Tang VP, Logistics

10+ years experience in logistics industry Previously logistics department head of Tesco in northern China, and Senior Director of logistics department of Dangdang.com (NYSE: DANG) Masters degree from Sun Yat-Sen University

Xian Feng Cai GM, Shanghai Branch

19+ years experience in retail industry Previously GM of IGA Distribution PTY LTD Bachelors degree from University of Melbourne

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Financial highlights

16

Phenomenal growth
Total orders
(in thousands)

Net revenues
(US$ in millions)

684.1%

7,269 597.1% 242.3%

227.1

233.5% 4,664
135.3

1,205.6% 1,363 927 71

1,061.6%
40.6

32.6 2.8

2009

2010

2011

2Q11

2Q12

2009

2010

2011

2Q11

2Q12

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Steady margin expansion

Quarterly gross profit and gross margin
(US$ in millions )

21.2% 20.0%

21.8% 29.6

18.3%
17.0%

19.0%

21.0

21.4

10.0 7.4 4.9

1Q11

2Q11

3Q11
Gross profit

4Q11
Gross margin

1Q12

2Q12

Strong and defensible margins:

Brands often sign exclusive deals to minimize brand dilution (>400 exclusive brands) Brands only liquidating excess inventory (limited quantity = inability to price shop) Brands want to efficiently monetize excess inventory and have little price sensitivity
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Continuous investment in logistics infrastructure to drive long term growth

Fulfilment expenses (Non-GAAP)
(US$ in millions)
1

20.9%

20.7%

21.7% 18.4% 16.6% 15.1%

20.5 16.8

19.4

11.4 8.4 6.0

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

Fulfilment expenses (non-GAAP)

Fulfilment as % of net revenue

Note: (1)

All numbers are shown on a non-GAAP basis and excludes the impact from share-based compensation expenses

19

Tremendous operating leverage and historically low marketing expenses

Marketing expenses (Non-GAAP)
(US$ in millions)
(1)

General and administrative expenses (Non-GAAP)

(US$ in millions)

(1)

8.7% 5.7% 5.7% 6.2% 5.8% 7.2% 7.1% 4.0% 3.9% 3.2%

4.9%
3.6%

6.6 4.6 1.7 2.3

5.8

6.6 2.9 1.0 3.7 4.2 3.9 4.3

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

Marketing expenses (non-GAAP)

Marketing as % of net revenue

G&A expenses (non-GAAP)

G&A as % net revenue

Note: (1)

All numbers are shown on a non-GAAP basis and excludes the impact from share-based compensation expenses

20

Net margin improvement

Net margin (Non-GAAP)
(1)

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

(4.2)

(7.1)
(10.8) (11.2)

(6.5)

(4.2)

-14.6%

-17.6%

-10.6% -20.6%

-6.4%

-3.1%

Net income/loss (non-GAAP)

Net margin (non-GAAP)

Note: (1)

All numbers are shown on a non-GAAP basis and excludes the impact from share-based compensation expenses

21

Balance Sheet Highlights

(in thousands)

March 31, 2012

$98,473 188,603 197,767 123,288 123,288 74,479

June 30, 2012

$115,555 191,079 200,232 127,553 127,553 72,679

Cash and cash equivalents Current Assets Total Assets Current Liabilities Total Liabilities Total Stockholders Equity

Current Ratio

1.5

1.5

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Growth strategies

23

Our future growth strategy

Expand warehouse capacities to accommodate increasing customer demand
Geographical expansion

Greater penetration in additional cities

Greater penetration in Northern, Eastern, Southwestern and Central China Increase brand partners and sales per brand

Product expansion

Expand product category Exclusivity with brand partners Further expand into mobile and connected devices

Channel expansion

Extend partnership with social networking platforms such as Weibo and Renren

24

Major profitability drivers

Gross margin

Stronger negotiation power

Fulfillment expense

Better pricing
Distribution centers build out

Capacity utilization ramp up

Profitability

Marketing expense

Word-of-mouth

ROI maximization Increased Operating leverage

G&A expense

Cost control

25

Warehouse capacity expansion strategy (1)

Current warehouses Lease Planned warehouse Build + Lease

North China
Beijing Size: 24,220 sq.m.

Beijing Beijing

East China
Kunshan Size: 34,484 sq.m.

Shanghai West China

Chengdu Size: 23,980 sq.m.

Chengdu

Lease Build

South China
Foshan Size: 35,126 sq.m.

Guangzhou
Note: (1) Sizes include both warehouse and office space

Total size: 117,810 sq.m.

Expand warehouse capacity Localize warehouse capacity & delivery partnerships

Total size: 400,000 sq.m. by 2013

Enhanced fulfillment capabilities Reduced fulfillment expenses Improved delivery times to customers
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Key investment highlights

Strong industry growth fundamentals

Market leadership position

Highly engaged and loyal customer base

Superior operational expertise

Strong management team

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Thank you!

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