VIPSHOP bought a 23% stake in Oriental Fashion for US $55.8 million.

on February 21, VIPSHOP issued an announcement on the evening of the same day, announcing that he would buy a stake in Oriental Fashion with US $55.8 million under the previously reached equity subscription agreement. Upon completion of the deal, VIPSHOP will hold a 23 per cent stake and, through its Lefeng unit, focus on its own-brand cosmetics and media products business. It can be seen from this transaction that VIPSHOP not only controls the cosmetics channel of Lefeng and expands the category of cosmetics, but also will help the development of cosmetics own brand business in the future. At the same time, VIPSHOP may make use of oriental popular media resources to spread the brand.

it can be seen from this transaction that VIPSHOP will not only hold the cosmetics channel of Lefeng and expand the category of cosmetics, but will also promote the development of cosmetics' own brand business in the future. At the same time, VIPSHOP may make use of oriental popular media resources to spread the brand.

at present, VIPSHOP mainly sells clothing, and cosmetics are its deficiency. Cosmetics are the second largest category of online shopping. With the alleviation of the inventory problem in the clothing industry, the special sale of clothing tends to slow down. Holding Lefeng and taking a stake in Oriental Fashion can increase the imagination in the future.

and Lefeng's outstanding performance in e-commerce media, own talent brand operation, coupled with its unique fan group, which is very consistent with VIPSHOP, users have a high degree of coincidence. VIPSHOP CEO Shen Ya said: "this strategic investment will enable VIPSHOP to get a continuous supply of Oriental popular brand cosmetics, and our users' demand for these products is growing." About 75% of our user base are female users. Not only that, Oriental fashion can help improve the quality of brands in terms of brands and markets, which is very beneficial to expanding the user base and increasing the purchase of platforms. Oriental Fashion is our strategic partner. Our cooperation will expand our advantages, promote the prosperity of the cosmetics market, and make us more competitive. "

while Li Jing, chairman and founder of Oriental Fashion, said: "We are very pleased with the move that can deepen the relationship with VIPSHOP. We are now in the new online retail period. There are good prospects for our own brand cosmetics and other consumer goods. Through VIPSHOP's platform, we can have more consumers, and these consumers know the brand very well. This also expands the consumption potential of the two companies. It is very gratifying to be able to cooperate with VIPSHOP, and we will continue to develop products under our own brand independently. " At the same time, she also said, "I am very glad that Oriental Fashion has reached an in-depth cooperation with VIPSHOP. I believe that with VIPSHOP's resources, platform, audience and successful operation model, the private brands and talent brands of Oriental Fashion Group will have unprecedented strong resources."

VIPSHOP and Oriental Vogue Group have a common investor, Sequoia Capital. In April 2008, Oriental Fashion Group received financing of RMB 10 million in round An of Sequoia Capital. In January and April 2011, Sequoia Capital and DCM jointly completed two rounds of VIPSHOP's private equity investment, with a total investment of 61.4 million US dollars. Before the IPO, Sequoia Capital held 19.3 per cent of the shares. Last year, Sequoia sold VIPSHOP ADS twice, reducing its stake to 15 per cent.