SHANGHAI, China, Nov. 12, 2015 (GLOBE NEWSWIRE) -- Baozun Inc. (Nasdaq:BZUN) ("Baozun" or the ""Company"), the leading e-commerce solutions provider in China, today announced that total order value settled through payment gateways on all of its ecommerce channels exceeded RMB1.1 billion during the 2015 11.11 Shopping Festival, more than doubled the amount on the same day last year.
To meet the enormous surge that takes place during the 11.11 shopping festival, Baozun began drafting sales plans, stocking inventory, and shipment and distribution preparations in close cooperation with its brand partners in July 2015. With warehouse overload a major concern for brand partners, Baozun expanded its regional logistical infrastructure to increase efficiency, lower shipping costs and provide better services during the 11.11 surge. The Company now operates seven warehouses in Suzhou, Beijing, Guangzhou and Hong Kong with an aggregate gross floor area of 100,000 m2, a significant increase from 45,000 m2 in 2014.
Mr. Vincent Qiu, Chief Executive Officer of Baozun, commented, “This is the seventh year in a row we have participated in the 11.11 shopping festival and every year the challenge of meeting the surge in orders has increased drastically. With years of experience and adequate planning and strategic foresight, I am pleased to announce that we were able to successfully settle total order value of RMB1.1 billion during the 2015 11.11 shopping festival. During each 11.11 shopping festival, our systems and infrastructure are put to the test. To prepare for the stress that would be applied, we completely revamped our supply chain management systems in the months leading up to the 11.11 shopping festival to guarantee peak processing capacity of over 600,000 orders per hour, more than double the amount from last year.”
“Leveraging our sophisticated IT infrastructure and years of 11.11 shopping festival data analysis, we were able to predict the quantity of orders that would be made based on changes in traffic during peak hours, conversion rates and popularity of certain product categories. This not only helps us ensure the smooth fulfillment of orders, but also helps us secure shipping capacity with courier services and help our brand partners manage their inventories in a cost-efficient way. In preparation, we teamed up with over 100 of our brand partners this year, hired an additional 1,300 temporary customer service representatives, increased seasonal warehouse staff headcount by 3,000, and expanded our warehouse storage capacity to 100,000m2. Using these resources, we were able to ship over 400,000 orders on November 11th, more than double last year’s total for the same day.
“This year also saw the rise of cross-border ecommerce’s participation in the 11.11 shopping festival. We worked with a number of brand partners in managing their presence cross-border ecommerce platforms and establishing their presence in China. Chinese consumers tend to prefer these platforms to purchase high-quality goods.”
“I am very proud of our performance during this year’s 11.11 shopping festival. With a number of our brand partners ranked as the top selling brands among different categories in Tmall, we are clearly demonstrating the value we can provide to other potential brand partners when it comes to providing our full range of end-to-end ecommerce solutions and meeting the surge on the most important shopping day in the world. With this year’s shopping festival over, we now begin planning for next year’s by focusing on further enhancing our services and improving efficiency across our entire business.”
Safe Harbor Statements
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in 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," "target," "going forward," "outlook" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.
About Baozun Inc.
Baozun is the leading brand e-commerce solutions provider in China that helps brand partners execute their e-commerce strategies. The Company's integrated capabilities encompass all aspects of the e-commerce value chain, covering IT solutions, store operations, digital marketing, customer services, warehousing and fulfillment. With e-commerce in China growing rapidly in both scale and complexity, brands look to Baozun as a trusted partner and rely on its local knowledge and industry expertise to execute their e-commerce strategies.
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