Dangdang Reported That The Fastest Growing Clothing Category.

< p > the world is < a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > a target= "_blank" href= "_blank".

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< p > Dangdang reported that the total net revenue in the second quarter was 1 billion 960 million 800 thousand yuan, an increase of 31.3% over the same period last year.

Net profit was 28 million 800 thousand yuan, a net loss of 63 million 900 thousand yuan in the same period last year.

Yu Yu, chairman of the board, said that clothing category grew fastest.

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< p > Beijing time August 14th evening news. Dangdang (NYSE:DANG) announced today's unaudited 2014 quarter fiscal year second quarter earnings as of June 30, 2014.

The report shows that Dangdang's total net revenue in the second quarter was 1 billion 960 million 800 thousand yuan (US $316 million 100 thousand), an increase of 31.3% over the same period last year.

Net profit was 28 million 800 thousand yuan (US $4 million 600 thousand), compared with a net loss of 63 million 900 thousand yuan in the same period last year.

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< p > < strong > < EM > Dangdang net dropped nearly 7% at the end of the 14 night, < /em > /strong > /p >

< p > after the release of the earnings report, Yu Yu, executive director of Dangdang, and Susan Zhang, director of the financial report, held an analyst conference call to interpret the key points of the earnings report and answer the analyst's questions. (Susan Zhang)

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< p > below is the main content of this conference call and answer session: < /p >

< p > Credit Suisse (27.73, 0.57, 2.10%) analyst Evan Zhou: the first question is about Dangdang's third party platform business.

What medium-term goals have you formulated for this business, such as growth targets for the next one or two years?

Dangdang's third party platform business has been very strong in the past few quarters, and its growth rate has reached 80%. Please talk about the future trend of this business.

In addition, whether management can introduce different categories of performance, which category grows fastest.

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< p > Yu Yu: our short-term and medium-term growth target for the third party platform business is 80%.

As for the performance of each category, the biggest category is clothing, followed by baby products, consumer electronics and food ranked third and fourth.

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< p > strong > Ivan week: which category grows fastest? < /strong > /p >

< p > Yu Yu: clothing category grows fastest.

Clothing is the destination category of Dangdang. We invest more advertising and other resources in the target category to increase the exposure rate of this category on mobile terminals and web pages.

Therefore, Dangdang's target category grows fastest.

The second is baby products, because Dangdang has a large number of young mothers and pregnant fans, and they have strong purchasing power for baby products, thus driving the brand's strong performance.

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< p > Ivan Chou: the second question concerns the cost of performance.

Dangdang's recent investment in warehousing and logistics networks made it possible to serve each other and serve the next day.

What is the impact of this investment on the performance cost of Dangdang net in the future? In addition, you also said that Dangdang's warehousing center in Tianjin has begun to put into operation. What's the impact of the use of the new storage center on the performance cost of Dangdang in the future? < /p >

< p > Yu Yu: < a href= "http://www.91se91.com/news/index_s.asp" > Dangdang < /a > Tianjin storage center area of about 100 thousand square meters, will give Dangdang a large number of warehousing and distribution functions.

Distribution and production centers and the largest FDC (pre distribution center) will facilitate us to get inventory products from different manufacturers quickly and then send them to Dangdang storage center in different regions.

These warehouses help us to deliver the packages faster to the users and help them to receive all orders in a certain place.

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< p > in the long run, Tianjin storage center will become the backbone of Dangdang warehousing and logistics network, and will also help further enhance the service level and operation efficiency of Dangdang storage center.

As for the cost of performance, it will become a favorable factor for us in the future. We think that the expansion cost of Tianjin storage center has a very limited impact on Dangdang's revenue, which has played a positive role.

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< p > as for Dangdang network and three links one Tatsu logistics company's cooperation, three links one can make Dangdang's logistics network more quickly cover different areas.

The agreement with the three links is very beneficial to Dangdang, because Dangdang has both its own parcel and a large number of packages from the third party. We believe that cooperation will not constitute too much cost pressure on the three links and one da.

Above is my answer to your question.

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< p > HSBC analyst Chi TSANG: I want to ask some questions related to media business.

Dangdang media business began to recover recently. The revenue of the business in the second quarter increased by 43% compared with the same period last year.

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< p > Yu Yu: Dangdang network media performance was very eye-catching in the second quarter, because we launched three large-scale quarterly promotional activities in the second quarter.

This April is the "reading season". In May, we celebrated the "children's Day". In June, we launched the annual media product promotion.

Therefore, in the second quarter, we implemented a great sales promotion campaign, which pushed the sales volume of media products at one go.

I think this is indeed a hot season for media products.

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< p > Chi TSANG: do you think this will happen next year, or is it more than a special case?

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< p > Yu Yu: This is just a special case of a particular season.

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< p > Chi TSANG: the second question is about Dangdang's third party platform business.

Can the management talk about this business in detail, such as expansion plan, how to achieve the growth rate of 80%, and the growth of each category.

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< p > Yu Yu: in the second quarter of this year, Dangdang "other" revenue was 80 million yuan, an increase of 26% over the same period last year. We no longer charge freight to the third party, but we will charge it before.

Therefore, the Commission and advertising fees we collect from businesses are growing rapidly.

In view of the third party platform business revenue growth of 80%, this shows that we help manufacturers sell more products.

I stated in the statement that Dangdang is very strict in screening the merchants who apply to join the third party platform, and put forward various requirements for these businesses.

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< p > by adopting this carefully chosen procedure, we hope to ensure that businesses can quickly provide products or services they sell, and ensure that our users can get good service.

By helping them sell more products, selling more products to Dangdang media products customers and selling more products to Dangdang self operated business customers, this will be the main driving force for the growth of the revenue of the third party platform business.

We will also make a careful selection of the businesses that apply for the target category.

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< p > Oppenheimer analyst Ira G (Ella Ji): my first question is related to the active users of Dangdang net.

The number of active users in Dangdang has declined slightly over the past two quarters. Can the management disclose the reasons? < /p >

< p > Yu Yu: as you said, the number of active users has declined in the second quarter.

I think this problem is related to many factors.

Many old customers are not very familiar with new items such as clothing added to department stores.

We are trying to use more effective means to attract users to these new categories.

I think Dangdang can make progress in this field in the future.

But at the same time, we are gratified that the average expenditure of the existing users of Dangdang increased, which helped us achieve double growth in revenue and GMV.

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< p > Ella quarter: the second problem is related to sales of Dangdang department store products.

Sales of this business have fluctuated recently, for example, sales growth in this quarter is slightly lower than that in the previous quarter. Please ask management to talk about this problem.

In addition, in the department store sales, how many of them are contributed by the users of the existing book products, and how many of them are sold by themselves.

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< p > Yu Yu: when it comes to the sale of department stores, we should take the sales of Dangdang network as an example and the sale of the third party platform business as an example.

As for the users, they may have bought a cup, either through the Dangdang self operated business, or by the third party platform.

As for the department store itself, sales revenue increased by 54% in the second quarter, which is in line with our expectations.

The sales growth of department stores both contributed to Dangdang's proprietary business and the contribution of the third party platform.

Many of the users who buy Dangdang department store products come from the media and book business, while others are attracted by our marketing and advertising activities.

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< p > Macquarie Securities analyst Shao Jiong (Jiong Shao): my question and the conversion rate of Dangdang third party platform business (Take Rate), refers to the proportion of income earned by e-commerce companies from the paction volume.

In the past few quarters, the conversion rate of Dangdang third party platform business has been around 5.6% and 5.7%. Do you think the conversion rate will remain at this level in the past few years, or will it decline? < /p >

< p > Yu Yu: we believe that the annual conversion rate of the third party platform business will remain at around 5% in the future, for the following reasons.

First of all, a year ago, a large proportion of other income came from the freight we charged to the third party, but in the second quarter of this year, we lost part of our income and made no contribution to the conversion rate.

Because of this, the growth rate of other income in the second quarter was lower than that of GMV.

As we add some new functions, I believe that in the long run the conversion rate will increase.

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< p > in addition, conversion rate will also be affected by different product categories.

In the specific quarter, we will add more low profit categories on the third party platforms, such as electronic equipment and food drinks, which to a certain extent lower the conversion rate.

Therefore, in the near future, the conversion rate should be maintained at around 5.4% or 5.3%.

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< p > Shao Jiong: the second problem is also related to Dangdang's third party platform business.

As you have just stressed, clothing and baby products account for a large part of the third party platform GMV. Can you disclose the approximate ratio or other relevant data? Secondly, management has said many times that Dangdang will adopt a proprietary mode in clothing sales.

On this issue, is there any new circumstance for management to introduce to us? < /p >

< p > Yu Yu: clothing accounts for more than 50% of the third party platform GMV.

We have studied this problem on the basis of self operated mode, but so far no relevant plans have been formulated.

If a href= "http://www.91se91.com/news/index_f.asp" > clothing category < /a >, we will finally notify you of this sales mode.

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