February 2013

Vipshop Holdings LimitedInvestor 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

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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

Consumers in China are skipping outlet model and going directly online for discounted branded products

Online: the future of discount retailing in China

4

Note: (1) As 2012 year end, including 1,867 Marmaxx stores and 374 HomeGoods stores in the US, from 2012 Company Presentation

(2) As of February 2013, including 1,091 dress-for-less stores and 108 dd’s DISCOUNTS stores in the US, from February 2013 Company Investor Overview

(3) As of February 2013, from Company Website

(4) As of February 2013, from Company factsheet

2,241stores(1)

1,199 stores(2)

67 outlets(3)

38 outlets(4)

China's offline discount retail are extremely underdeveloped

ChinaU.S.

Large

Off-price

retailer

Outlets

None

5

China: A more attractive market opportunity

Broad universe of popular brands

for mass market

Limited upfront deposit

Most products can be returned to

suppliers

Need to pay for inventory upfront

Products can not be returned to

suppliers

Well established online presence

and capabilities

Largely rely on third party

platforms to build online presence

Market

positioningMostly focused on high-end and

luxury markets

China U.S.

Discount / outlet retail channels

saturated for mass market

merchandise

Lack of well-developed discount /

outlet retail channelCompetition from

offline channel

Brands’ own online

presence

Working capital

requirement

Broader addressable market

Better business modelResult

A unique player in China’s e-Commerce landscape

6

Market place

General B2C

Cosmetics

Broad based Platforms

Vertical focused players and online retailers

Grocery

Online discount

Shoes/bags3C Apparel

• Partner with leading brands by selling their excess inventory at discount prices

• Unique business model partnering with brands has no direct competition

7

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

538

1,296

2010 2011 2012 4Q11 4Q12

New active customers

804

6,681

20,457

2,771

8,026

927

7,269

21,919

3,005

8,752

86.7%91.9% 93.3% 92.2% 91.7%

2010 2011 2012 4Q11 4Q12

Orders placed by repeat customers

Total orders

Orders placed by repeat customers

155

903

2,625

644

1,861

276

1,491

4,110

934

2,586

56.2%60.6%

63.9%69.0%

72.0%

2010 2011 2012 4Q11 4Q12

Repeat customers

Total active customers

Repeat customer as % of total customer

Preferred discount channel for popular brands

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One-stop solution for brands

Professional team with deep brand knowledge

Fast inventory monetization

Minimal brand dilution

Clear industry leader(2)

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 June 30, 2012 and the number of monthly unique visitors in December 2012, according to the Frost & Sullivan Report.

Brand partners growth over time(1)

Product categories

Travel

Accessories

Home goods

SportswearCosmetics

Children

HandbagsFootwear

Apparel

Shoppers are not loyal, but our brand partners are.

411

1,075

2,759

2010 2011 2012

2010 –2012 growth by 6.7x

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Operational expertise

Relationship with brands

Understanding of consumers

Business intelligence

system

Over 250 merchandising staff

Excellent merchandising

10

Brand

selection

Sales

management

capability

Consumer

insights

Customized

marketing

Sales events

optimization

Over 5,800

brands

Deepening

brand

partnership

1

2

3

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Differentiated logistics system

Extra process 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.

Customized and more complicated logistics and warehousing system

Sales process

No. of SKUs handled

Relatively fast

Much more

Relatively slow

Relatively few

Highly customized and seamlessly integrated IT system for flash sales

12

Support huge traffic spikes

Customized ERP system

Warehouse management

system

CRM system

Time

Tra

ffic

12am 10am 12pm 12am

High entry barriers

13

First Mover Advantage

Business model

Operational expertise

Economies of scale1

2

3

4

Vipshop is well positioned in

China’s online discount retail

market

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Visionary management team with strong execution

Donghao Yang

Chief Financial Officer

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

Maggie Hung

Senior VP, Merchandising

20+ years experience in merchandise retailPreviously VP of Grand Pacific Mall and GM of Grand Ocean Department Store in NanjingBachelor’s degree from Ling Tung University

Yizhi Tang

Senior VP, Logistics

10+ years experience in logistics industryPreviously 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 distributionPreviously 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 industryPreviously GM of IGA Distribution PTY LTDBachelor’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 ChinaPreviously director of site operation and quality engineering at eBay IncBachelor’s degree in computer science from Iowa State University

Arthur Xiaobo Hong

Co-Founder, Vice Chairman, COO

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

Alex Jiang

Senior VP, Business Intelligence and

Customer Relationship Management

(CRM)

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

Xiaohui Ma

VP , Online Marketing

10+ years experience in marketing and mediaPreviously editor-in-chief of SINABachelor’s degree from Communication University of China

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Financial highlights

Phenomenal growth

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Net revenues

(US$ in millions)

Total orders

(in thousands)

927

7,269

21,919

3,005

8,752

2010 2011 2012 4Q11 4Q12

684.1%

201.5%

191.2%

32.6

227.1

692.1

105.2

299.6

2010 2011 2012 4Q11 4Q12

597.1%

204.7%

184.8%

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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 (>730 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

4.97.4

10.0

21.0 21.4

29.634.8

68.717.0%

18.3%19.0%

20.0%21.2%

21.8% 22.3% 22.9%

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

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

20.9% 20.7%21.7%

18.4%16.6%

15.1%13.9% 12.5%

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

Fulfilment expenses (non-GAAP) Fulfilment as % of net revenue

Tremendous operating leverage and historically low marketing expenses

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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

5.7% 5.7%

8.7%

6.2% 5.8%4.9% 4.7% 4.1%

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

Marketing expenses (non-GAAP)

Marketing as % of net revenue

1.0

2.9 3.74.2 3.9 4.3 4.6 5.0

3.6%

7.2% 7.1%

4.0% 3.9% 3.2% 2.9%1.7%

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

G&A expenses (non-GAAP)

G&A as % net revenue

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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

-14.6%

-17.6%

-20.6%

-10.6%

-6.4%-3.1%

0.4%

2.7%

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

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

Net margin (Non-GAAP) (1)

(US$ in millions)

Net margin improvement

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(in $ thousands)December 31, 2011 December 31, 2012

Cash and cash equivalents and held-to-maturity

securities44,955 210,570

Current Assets 158,278 381,952

Total Assets 167,435 398,917

Current Liabilities 149,146 316,334

Total Liabilities 149,146 316,334

Total Stockholder’s Equity 18,289 82,583

Current Ratio 1.1 1.2

Balance Sheet Highlights

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Growth strategies

Our future growth strategy

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Expand warehouse capacities to accommodate increasing customer demand

Greater penetration in additional cities

Greater penetration in Northern, Eastern, Southwestern and Central China

Increase brand partners and sales per brand

Expand product category

Exclusivity with brand partners

Further expand into mobile and connected devices

Extend partnership with social networking platforms such as Weibo and Renren

Geographical expansion

Product expansion

Channel expansion

Major profitability drivers

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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

25

Key investment highlights

Market leadership position

Strong industry growth fundamentals1

Highly engaged and loyal customer base

Superior operational expertise

2

3

4

Strong management team5

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Thank you!