Vipshop Holdings Limited Investor Presentation

August 2013

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$3.8 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) No large discount retail chains or branded outlets Total discount retail was US$23.6bn in 2012 with a

56.2% 12-15E CAGR(1)

Huge consumer demand

Constant supply of excess inventory

Immature offline discount retail infrastructure

Massive discount retail opportunities

Note: (1) (2)

Data from Frost & Sullivan report; assuming 1 US$ = 6.2301 RMB. Data from BCG report The Worlds Next E-Commerce Superpower.

Chinas huge market potential in online discount retail and B2C market
Chinas retail market (1)
(US$ in billions)

Chinas online C2C market (2)

(US$ in billions)

192.7 4,965.0 4,356.6 3,808.3 3,325.3 2,952.1 2,520.0 2010 2011 2012 2013E 63.9 147.1 94.1

232.8

263.2

2014E

2015E

Chinas online B2C market (1)

(US$ in billions)

216.5
158.9 101.1 10.1 2010 2011 2012 2013E 2014E 2015E 2010 28.9 2011 59.5

2012E

2013E

2014E

2015E

Discount retail as % of total retail (2011) (1)

1.4% 0.5%

China discount retail sales (1)

(US$ in billions)

90.0 60.0 38.0

China
Note: (1) (2)

US

9.1 2010

15.1 2011

23.6

Data from Frost & Sullivan report, assuming 1 US$ = 6.2301 RMB iResearch, assuming 1 US$ = 6.2301 RMB

2012

2013E

2014E

2015E 4

Online: the future of discount retailing in China

China's offline discount retail is extremely underdeveloped

U.S.
24 square feet per capita(1)
Top 20 retailers account for 24% market share(1)

China
2 square feet per capita(1)
Top 20 retailers account for 7% market share(1) Poor offline retail infrastructure in China

Fragmented retail market in China

2,241

stores(2)

1,199

None
stores(3)

Lack of large off-price retailer in China

67

outlets(4)

38

outlets(5)

outlets(6)

outlets(7)

Underdeveloped offline outlet stores in China

Consumers in China have to go online for branded discount products

Note: (1) (2) (3) (4) (5) (6) (7) According to Frost and Sullivan report As of 2012 year end, including 1,867 Marmaxx stores and 374 HomeGoods stores in the US, from 2012 T.J.Maxxs company presentation As of February 2013, including 1,091 dress-for-less stores and 108 dds DISCOUNTS stores in the US, from February 2013 Ross company investor overview As of February 2013, from Premium Outlets company website As of February 2013, from Tanger Outlets company factsheet From Balian Outlets Plaza company website From Beijing Scitech company website

China: A more attractive market opportunity

U.S. China

Market positioning

Mostly focused on high-end and luxury markets

Broad universe of popular brands for mass market

Offline channels

Discount / outlet retail channels saturated for mass market merchandise; full price retailers are establishing own outlets

Lack of well-developed discount / outlet retail channel

Online channels

Brands have well established online presence and capabilities

Brands have largely rely on third party platforms to build online presence

Working capital requirement

Need to pay for inventory upfront; Products can not be returned to suppliers

Limited upfront deposit; Most products can be returned to suppliers

Conclusion

Broader and underpenetrated addressable market

Better business model
6

A unique player in Chinas e-Commerce landscape

Large scalable platforms

Market place General B2C Online discount retailer

Partner with popular and well-known brands by selling their excess inventory at discount prices Core competency in merchandising, logistic distribution and customer service
7

Highly engaged and loyal customer base

Rapid increase of new active customers
( in thousands)

Rapid increase of repeat customers

( in thousands)

High and stable rate of orders from repeat customers

( in thousands)

72.1% 63.9%

75.0%

86.7%

91.9%

93.3%

91.3%

92.1%

3,312

60.6% 56.2% 4,110 3,490

21,919 20,457

2,625

2,619

11,020 10,149

1,488 1,330
1,491 1,462 6,681 1,054 4,256 927 804 7,269

4,664

725

903 276

255
155

2010

2011

2012

2Q12

2Q13

2010

2011

2012

2Q12

2Q13

2010

2011

2012

2Q12

2Q13

New active customers

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)

2010 1H13 growth by 8.7x

3,557 2,760

Clear industry leader(2)

Fast inventory monetization

Minimal brand dilution

One-stop solution for brands

Professional team with deep brand knowledge

1,075 411

Product categories
Apparel Handbags Sportswear Footwear

2010

2011

2012

1H13

Cosmetics

Accessories

Home goods

Children

Shoppers are loyal and so are our brand partners Substantially all of our brand partners have returned to pursue additional sales opportunities with us
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.

Operational expertise

10

Excellent merchandising

Relationship with brands

Brand selection

1
Over 300 Specialized Merchandising Staff

Sales management capability

Understanding of consumers

Consumer insights

Over 6,000 brands

3
Business intelligence system

Customized marketing

Deepening brand partnership

Sales events optimization

11

Flash sale requires differentiated logistics system

Additional capabilities on top of traditional B2C e-Commerce (1) Flash sale Traditional B2C e-Commerce
Long Slow Moderate Small Small

Sales cycle

Short Fast Large Large Large

Sales process
No. of SKUs handled Volume of throughput Reverse logistics
Snapshot of our warehouses

Vipshop has successfully established customized and sophisticated logistics and warehouse systems to cater to flash sale needs
Note: (1)
Comparison on per same-size warehouse basis.

12

Highly customized and seamlessly integrated IT system for flash sales

Traffic

Support huge traffic spikes during peak hours

12am 10am Time 12pm 12am

Expanding and cross-regional warehouse management system

CRM system

Data platform and BI

Merchant platform
13

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 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

Arthur Xiaobo Hong Co-Founder, Vice Chairman, COO

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

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

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

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 Bachelors 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) Masters degree from Sun Yat-Sen University

Alex Jiang Senior VP, Business Intelligence & Customer Relationship Management (CRM)
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

Xian Feng Cai VP & GM, Shanghai Branch

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

Xiaohui Ma VP, Online Marketing

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

15

Financial highlights

16

Phenomenal growth
Total orders
(in thousands)

Total net revenues

(US$ in millions)

21,919

692.1

204.7% 201.5% 136.3%

11,020

159.7%

351.3

684.1%

7,269 4,664

597.1%

227.1 135.3

927

32.6 2010 2011 2012 2Q12 2Q13

2010

2011

2012

2Q12

2Q13

17

Steady margin expansion

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

17.0%

18.3%

19.0%

20.0%

21.2%

21.8%

22.3%

22.9%

23.4%

23.5% 82.6

68.7

72.8

29.6 21.0 4.9 7.4 10.0 21.4

34.8

1Q11

2Q11

3Q11

4Q11

1Q12
Gross profit

2Q12

3Q12

4Q12

1Q13

2Q13

Gross margin

Strong and defensible margins:

Brands often sign exclusive deals to minimize brand dilution (>800 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
18

Continuous investment in logistics infrastructure to drive long term growth

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

20.9%

20.7%

21.7% 18.4% 16.6% 15.1%

13.9%

12.5% 12.1% 37.3 37.6 12.1% 42.6

19.4 11.4 6.0 8.4

20.5 16.8

21.6

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

Fulfilment expenses (non-GAAP)

Note: (1)

Fulfilment as % of total net revenues

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% 4.9% 4.7% 4.1% 4.2% 4.3% 15.0 12.4 13.0 8.9 6.6 4.6 2.9 1.7 2.3 1.0 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 G&A expenses (non-GAAP) G&A as % total net revenues 6.6 3.6% 7.1%

4.0%

3.9%

3.2%

2.9%

2.2%

2.3%

2.5%

7.3
3.7 4.2 3.9

6.5

7.0

5.8

4.3

4.6

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Marketing expenses (non-GAAP) Marketing as % of total net revenues

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)
(US$ in millions)
(1)

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12 2.7%

1Q13 2.9%

2Q13 3.4%

0.4%

11.8
8.1 9.0

-3.1%
-6.4% (4.2) (7.1) -14.6% -17.6% -20.6% (10.8) (11.2) -10.6% (4.2) (6.5) 0.6

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) Cash and Cash Equivalents and Held-to-Maturity Securities Current Assets Total Assets Current Liabilities Total Liabilities Total Stockholders Equity Current Ratio December 31, 2012 210,570 381,952 398,917 316,334 316,334 82,583 1.2 June 30, 2013 (Unaudited) 384,530 533,712 552,317 356,265 356,265 196,052 1.5

22

Growth strategies

23

Our future growth strategy

Enlarge customer base

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

Improve shopping experience

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

Enhance the quantity and quality of offers

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

Expand warehouse capacities to accommodate increasing customer demand

Geographical expansion

Greater penetration in additional cities Greater penetration in Northern, Eastern, Southwestern and Central China
24

Major profitability drivers

Gross margin

Stronger negotiation power Better pricing Distribution centers build out

Fulfillment expense

Capacity utilization ramp up

Profitability

Marketing expense

Word-of-mouth

ROI maximization Increased Operating leverage

G&A expense

Cost control

25

Key investment highlights

Strong industry growth fundamentals

Market leadership position

Highly engaged and loyal customer base

Superior operational expertise

Strong management team

26

Thank you!

27