JuMei.com

The company's business model originally centered on curated flash sales, a format similar to group buying, which allowed it to offer branded beauty products at competitive prices. This strategy proved highly effective, targeting young Chinese women and enabling the company to operate efficiently while many competitors struggled. Revenue is generated through the direct sale of products sourced from suppliers and, for a time, from commissions on its third-party marketplace. Over time, Jumei shifted its model, reducing its reliance on the third-party marketplace to better control product authenticity and customer experience, a move made after facing issues with counterfeit products. The platform sells a wide array of items, including cosmetics, skincare, fragrances, apparel, and lifestyle products, as well as items for mothers and babies.

Jumei experienced rapid growth, achieving profitability within its first two years and boasting over 10.5 million active users by 2013. A pivotal moment in the company's history was its successful Initial Public Offering (IPO) on the New York Stock Exchange (NYSE) in May 2014, which raised approximately $245.1 million and made the then 30-year-old Leo Chen the youngest CEO of a NYSE-listed company. However, following its public listing, the company faced significant challenges, including intense competition from e-commerce giants like Alibaba and JD.com, and persistent issues regarding counterfeit goods, which eroded consumer trust and market value. In response to a declining market share and a stock price that had fallen significantly from its IPO high, Jumei diversified its portfolio by investing in other ventures, notably acquiring a majority stake in the power bank rental startup Jiedian in 2017. After a nearly six-year run as a public entity, Jumei completed a privatization process and was delisted from the NYSE in April 2020.