(Yicai Global) June 22 -- The decline in China's demographic dividend and domestic markets beginning to saturate are leading to fierce competition between e-commerce platforms, which are being forced to develop their businesses in new ways, Beijing Business Today reported.
Vipshop Holdings Ltd. [NYSE:VIPS] will sell all of its 4.48 percent stake in French flash sales platform Showroomprive.com, the latter's parent company, Groupe SPR said yesterday. The shares carry a 3.11 percent weight in voting.
The move could suggest Vipshop intends to move out of overseas markets, analysts said, adding that another possibility related to SPR's existing business operations.
Vipshop has recently made a large number of foreign investments. In October 2015, it invested EUR30 million (USD33.5 million) in Groupe SPR to obtain a board seat. The same year, it invested in discount specialist e-commerce platforms Ensogo, and UK-based BrandAlley, among others. However, the companies haven't performed as well as hoped.
Ensogo was previously a group buying website but switched to a focus on discounted goods in Southeast Asia and Hong Kong. Vipshop and Ensogo cooperate in logistics, marketing and technology, but last June, the latter announced it would cease trading on the Australian Stock Exchange and stopped funding its operations in Southeast Asia.