VIP is an online sales platform in its own right. However, for all intents and purposes, most brands view it as a marketing and brand-building exercise. It is unlikely to be amongst your most profitable sales channels. Furthermore, the negative implications of sustained heavy discounting need little explanation. Conversely though, VIP offers massive, instant exposure to some of China’s most digitally engaged online shoppers. It is a platform where savvy shoppers, unwilling to compromise on quality, look to save money. For fledgling brands in China’s increasingly competitive market, VIP is a no-brainer.
VIP sits securely within Tencent’s ecosystem, following a number of recent strategic investments. As a result, VIP’s store is now available on JD.com, as well as via a standalone WeChat Mini-Program. The implication of this is that VIP products can be promoted to a much wider audience. For instance, VIP’s JD store is much more tailored towards fashion and apparel and even targets men.
In terms of integrated marketing strategies: WeChat and Sina Weibo are the only major social networks that enable links to VIP. These are the primary platforms where you should execute your influencer, video, WOM (etc.) campaigns.
On the topic of digital marketing, VIP frequently make beta-tools available to merchants for trialling. Altought their 2019 tests with coupons and livestreaming fell short, their current trials appear to be gathering momentum. While various tools may come and go, VIP are unlikely to lose sight of their key value driver: offering the lowest possible prices for high-quality and trusted brands.