Report: VIPStore to Cut Nearly Half of Workforce in Major Shake-Up

In China’s crowded luxury e-commerce market, it would appear that VIPStore (aka: Jiapin.com) is having to be, somewhat paradoxically, very frugal. Chinese tech media are today reporting that nearly half of VIPStore’s workforce is being laid off. The exact amount of workers involved hasn’t been revealed.

VIPStore’s CEO, Yang Peifeng (pictured below), says that the move is strategic and does not indicate any kind of crisis. In May of this year the website received $15 million in investment from Intel Capital and US retailer Macy’s. The deal also involves Macy’s setting up shop in conjunction with VIPStore, though that won’t be ready until Spring 2013. Yang Peifeng explained (in translation):

In order to improve efficiency while enhancing our overseas team, and improving our team of Europe product buyers, VIPStore has had to make a strategic adjustment and optimization.

He added that the company was in talks with employees about this, suggesting that voluntary redundancies were being sought in as many cases as possible.

VIPStore sells genuine and high-end fashion items, as well as some jewelry, watches, and some more common sportswear. It’s up again stiff competition in this area from the likes of 360Buy’s 360Top, the similarly-named VIPShop (NYSE:VIPS), and a whole host of other luxury-oriented sites.

[Source: Donews – article in Chinese]