How did Vipshop manage to reduce selling expenses significantly in Q4 2024 despite revenue challenges?

Vipshop's Reduction in Selling Expenses in Q4 2024: A Strategic Insight

1. **Strategic Cost Management**: Vipshop implemented targeted cost control actions to reduce expenses and enhance operational efficiency. This included identifying high-trade volume suppliers and leveraging volume to negotiate favorable rates for common-use components.
2. **Simplification of Operations**: The Company consolidated all corporate functions in Athens, which supported its cost-efficiency strategy and led to a decrease in operating expenses.
3. **Prioritization of Profitable Segments**: By focusing on profitable segments such as Product (13.8 billion in revenue), Womenswear and Menswear (4.77 billion), Skincare and Cosmetics (1.92 billion), and Sportswear and Sporting Goods (1.88 billion), Vipshop likely redirected resources away from less profitable areas, thereby reducing overall selling expenses.

|code|Ticker|Name|Date|Business Composition|Revenue By Business|market_code|
|---|---|---|---|---|---|---|
|VIPS|VIPS.N|Vipshop Holdings|20240101-2024|Other|7.686282E9|169|
|VIPS|VIPS.N|Vipshop Holdings|20240101-2024|Other|3.596311E9|169|
|VIPS|VIPS.N|Vipshop Holdings|20240101-2024|Other|1.798751E9|169|
|VIPS|VIPS.N|Vipshop Holdings|20240101-2024|Other|1.798751E9|169|
|VIPS|VIPS.N|Vipshop Holdings|20240101-2024|Product|2.584713E10|169|

4. **Efficient Inventory Management**: The company's efforts to renegotiate supplier contracts and identify high-trade volume suppliers likely extended to inventory management, ensuring that stock levels were optimized to minimize holding costs, thereby indirectly reducing selling expenses.

In conclusion, Vipshop's reduction in selling expenses in Q4 2024 was a result of a combination of strategic cost management, simplification of operations, prioritization of profitable segments, and efficient inventory management. These measures allowed the company to mitigate the impact of revenue challenges and improve overall financial performance.