November 2013

Vipshop Holdings Limited Investor Presentation

1

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 Vipshop’s 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

Vipshop’s 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: Vipshop’s goals

and strategies; Vipshop’s future business development, results of operations and financial condition; the

expected growth of the online discount retail market in China; Vipshop’s ability to attract customers and

brand partners and further enhance its brand recognition; Vipshop’s 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 Vipshop’s

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.

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China's Leading Online Discount

Retailer for Brands

Vipshop

No large discount retail chains or branded outlets

Massive retail opportunities in China

3

Massive

discount retail

opportunities

Immature

offline

discount retail

infrastructure

Constant

supply of

excess

inventory

Total estimated retail sales of US$3.8 trillion in 2013(1)

Total apparel retail sales were US$151.9bn in 2011(1) ;

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

Total discount retail was US$23.6bn in 2012 with a

56.2% 12-15E CAGR(1)

Note: (1) Data from Frost & Sullivan report; assuming 1 US$ = 6.2301 RMB. (2) Data from BCG report “The World’s Next E-Commerce Superpower”.

Huge

consumer

demand

4

China’s huge market potential in online discount retail and B2C market

Note: (1) Data from Frost & Sullivan report, assuming 1 US$ = 6.2301 RMB (2) iResearch, assuming 1 US$ = 6.2301 RMB

2,520.0

2,952.1

3,325.3

3,808.3

4,356.6

4,965.0

2010 2011 2012 2013E 2014E 2015E

China’s retail market (1)

Discount retail as % of total retail

(2011) (1)

0.5%

1.4%

China US

63.9 94.1

147.1 192.7

232.8 263.2

2010 2011 2012 2013E 2014E 2015E

(US$ in billions)

China’s online C2C market (2)

China’s online B2C market (1)

China discount retail sales (1)

(US$ in billions)

(US$ in billions)

(US$ in billions)

10.1 28.9 59.5

101.1

158.9

216.5

2010 2011 2012E 2013E 2014E 2015E

9.1 15.1 23.6

38.0

60.0

90.0

2010 2011 2012 2013E 2014E 2015E

Online: the future of discount retailing in China

Top 20 retailers account

for 24% market share(1)

Consumers in China have to go online for branded discount products

5

Note: (1) According to Frost and Sullivan report (2) As of 2012 year end, including 1,867 Marmaxx stores and 374 HomeGoods stores in the US, from 2012 T.J.Maxx’s company presentation

(3) As of February 2013, including 1,091 dress-for-less stores and 108 dd’s DISCOUNTS stores in the US, from February 2013 Ross’ company investor overview

(4) As of February 2013, from Premium Outlet’s company website

(5) As of February 2013, from Tanger Outlet’s company factsheet

(6) From Balian Outlets Plaza company website

(7) From Beijing Scitech company website

2,241 stores(2) 1,199 stores(3)

67 outlets(4) 38 outlets(5)

China's offline discount retail is extremely underdeveloped

China U.S.

None

Top 20 retailers account

for 7% market share(1)

24 square feet per capita(1) 2 square feet per capita(1)

3 outlets(6) 3 outlets(7)

Poor offline retail infrastructure in China

Fragmented retail market in China

Lack of large off-price retailer in China

Underdeveloped offline outlet stores in China

6

China: A more attractive market opportunity

Market positioning

Brands have well established

online presence and capabilities

Need to pay for inventory upfront;

Products can not be returned to

suppliers

Mostly focused on high-end and

luxury markets

U.S.

Discount / outlet retail channels

saturated for mass market

merchandise; full price retailers are

establishing own outlets

Broad universe of popular brands

for mass market

Limited upfront deposit;

Most products can be returned to

suppliers

Brands have largely rely on third

party platforms to build online

presence

China

Lack of well-developed discount /

outlet retail channel Offline channels

Online channels

Working capital

requirement

Broader and underpenetrated addressable market

Better business model Conclusion

A unique player in China’s e-Commerce landscape

7

Online discount retailer Market place General B2C

Partner with popular and well-known brands by selling their excess inventory at discount prices

Core competency in merchandising, logistic distribution and customer service

Large scalable platforms

8

Rapid increase of new active customers

Rapid increase of repeat customers

High and stable rate of orders from repeat customers

( in thousands) ( in thousands) ( in thousands)

Highly engaged and loyal customer base

255

1,330

3,312

787

1,708

2010 2011 2012 3Q12 3Q13

New active customers

804

6,681

20,457

4,966

10,659

927

7,269

21,919

5,433

11,712

86.7% 91.9% 93.3%

91.4%

91.0%

2010 2011 2012 3Q12 3Q13

Orders placed by repeat customers

Total orders

Orders placed by repeat customers

155

903

2,625

1,265

2,961

276

1,491

4,110

1,732

4,013

56.2% 60.6%

63.9%

73.0% 73.8%

2010 2011 2012 3Q12 3Q13

Repeat customers

Total active customers

Repeat customer as % of total customer

Preferred discount channel for popular brands

9

One-stop solution for brands

Professional team with deep brand knowledge

Fast inventory monetization

Minimal brand dilution

Clear industry leader(2)

Brand partners growth over time(1)

411

1,075

2,760

3,834

2010 2011 2012 9Mo. 13

2010 –9Mo.13 growth by 9.3x

Product categories

Children

Cosmetics

Home goods

Footwear Sportswear

Accessories Handbags

Apparel

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Note: (1) 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.

(2) As measured by total revenues in 2011, the number of registered members as of December 31, 2012 and the number of monthly unique visitors in December 2012, according to the Frost & Sullivan

Report.

Shoppers are loyal and so are our brand partners

Substantially all of our brand partners have returned to pursue additional sales opportunities with us

10

Operational expertise

Relationship with brands

Understanding of consumers

Business intelligence

system

Over 300 Specialized

Merchandising Staff

Excellent merchandising

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Brand

selection

Sales

management

capability

Consumer

insights

Customized

marketing

Sales events

optimization

Over 6,500

brands

Deepening

brand

partnership

1

2

3

Flash sale requires differentiated logistics system

12

Additional capabilities on top of traditional B2C e-Commerce (1)

Sales cycle Short Long

Traditional B2C e-Commerce

Volume of throughput Large Small

Note:

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

Vipshop has successfully established customized and sophisticated logistics and warehouse

systems to cater to flash sale needs

Sales process

No. of SKUs handled

Fast

Large

Slow

Moderate

Reverse logistics Large Small

Snapshot of our warehouses

Flash sale

Highly customized and seamlessly integrated IT system for flash sales

13

Support huge traffic spikes during peak hours

CRM system

Expanding and cross-regional warehouse

management system

Data platform and BI

Time

Tra

ffic

12am 10am 12pm 12am

Merchant platform

High entry barriers

14

First Mover Advantage

Business model

Operational expertise

Economies of scale 1

2

3

4

Vipshop is well positioned in

China’s online discount retail

market

15

Visionary management team with strong execution

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

Maggie Hung

Senior VP, Merchandising

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

Yizhi Tang

Senior 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) Master’s degree from Sun Yat-Sen University

Eric Ya Shen

Co-Founder, Chairman, CEO

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

Xian Feng Cai

VP & GM, Shanghai Branch

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

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 Bachelor’s degree in computer science from Iowa State University

Arthur Xiaobo Hong

Co-Founder, Vice Chairman, COO

12+ years experience in consumer electronic products distribution Previously Chairman of Societe Europe Pacifique Distribution

Alex Jiang

Senior VP, Business Intelligence &

Customer Relationship Management

(CRM)

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

Xiaohui Ma

VP, Online Marketing

10+ years experience in marketing and media Previously editor-in-chief of SINA Bachelor’s degree from Communication University of China

16

Financial highlights

Phenomenal growth

17

Total net revenues

(US$ in millions)

Total orders

(in thousands)

927

7,269

21,919

5,433

11,712

2010 2011 2012 3Q12 3Q13

684.1%

201.5%

115.6%

32.6

227.1

692.1

155.9

383.7

2010 2011 2012 3Q12 3Q13

597.1%

204.7%

146.1%

18

Steady margin expansion

Quarterly gross profit and gross margin

(US$ in millions )

Strong and defensible margins: • Brands often sign exclusive deals to minimize brand dilution (>900 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

4.9 7.4 10.0

21.0 21.4 29.6

34.8

68.7 72.8

82.6

93.0

17.0% 18.3%

19.0% 20.0%

21.2% 21.8% 22.3% 22.9% 23.4% 23.5% 24.2%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Gross profit Gross margin

Continuous investment in logistics infrastructure to drive long term growth

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(US$ in millions)

Fulfilment expenses (Non-GAAP) 1

Note: (1) All numbers are shown on a non-GAAP basis and excludes the impact from share-based compensation expenses

6.0 8.4

11.4

19.4 16.8

20.5 21.6

37.3 37.7 42.6

43.9

20.9% 20.7% 21.7%

18.4% 16.6%

15.1% 13.9% 12.4%

12.1% 12.1% 11.4%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Fulfilment expenses (non-GAAP) Fulfilment as % of total net revenues

Tremendous operating leverage and historically low marketing expenses

20

Note: (1) All numbers are shown on a non-GAAP basis and excludes the impact from share-based compensation expenses

(US$ in millions)

General and administrative expenses (Non-GAAP) (1)

(US$ in millions)

Marketing expenses (Non-GAAP) (1)

1.7 2.3

4.6

6.6 5.8

6.6 7.3

12.4 13.0

15.0

17.3

5.7% 5.7%

8.7%

6.2% 5.8% 4.9% 4.7% 4.1% 4.2% 4.3% 4.5%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Marketing expenses (non-GAAP)

Marketing as % of total net revenues

1.0

2.9 3.7 4.2 3.9 4.3 4.6

6.5 7.0

8.9

10.1

3.6%

7.2% 7.1%

4.0% 3.9% 3.2% 2.9%

2.2% 2.3% 2.5% 2.6%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

G&A expenses (non-GAAP)

G&A as % total net revenues

21

Note: (1) All numbers are shown on a non-GAAP basis and excludes the impact from share-based compensation expenses

(4.2)

(7.1)

(10.8) (11.2)

(6.5)

(4.2)

0.6

8.1 9.0 11.8 15.1

-14.6%

-17.6%

-20.6%

-10.6%

-6.4% -3.1%

0.4%

2.7% 2.9%

3.4%

3.9%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Net income/loss (non-GAAP) Net margin (non-GAAP)

Net margin (Non-GAAP) (1)

(US$ in millions)

Net margin improvement

22

(in $ thousands) December 31, 2012 September 30, 2013

(Unaudited)

Cash and Cash Equivalents and Held-to-Maturity

Securities 210,570 481,699

Current Assets 381,952 749,328

Total Assets 398,917 772,262

Current Liabilities 316,334 560,031

Total Liabilities 316,334 560,031

Total Stockholder’s Equity 82,583 212,232

Current Ratio 1.2 1.3

Balance Sheet Highlights

23

Growth strategies

Our future growth strategy

24

Expand warehouse capacities to accommodate increasing customer demand

Greater penetration in additional cities

Greater penetration in Northern, Eastern, Southwestern and Central China

Geographical expansion

Leverage social media and word-of-mouth to achieve better marketing ROI, attract more customers and strengthen the Vipshop brand

Recommendation/personalization, better fulfillment service, improve customer care programs, better customer retention and repeat purchase rate

Better brand portfolio, increase sales per brand, purchase per order

Enlarge customer base

Improve shopping experience

Enhance the quantity and quality of offers

Major profitability drivers

25

Word-of-mouth ROI maximization

Cost control

Increased

Operating leverage

Stronger negotiation

power

Better pricing

Gross margin

Fulfillment

expense

Marketing

expense

G&A

expense

Distribution centers

build out Capacity utilization ramp up

Profitability

1

2

3

4

26

Key investment highlights

Market leadership position

Strong industry growth fundamentals 1

Highly engaged and loyal customer base

Superior operational expertise

2

3

4

Strong management team 5

27

Thank you!