Urban Beauty Buy Ordifen To Increase Market Penetration

The cheap underwear brand city beauty recently disclosed the 2014 annual report at the HKEx. Last year, the company achieved total sales revenue of 4 billion 7 million yuan, an increase of 37.4% over the same period last year, and realized the profit attributable to shareholders 425 million yuan, up 54.3% over the same period last year. Since last year, the multi brand strategy of the urban beauty group has been developing. After acquiring the first-line brand Ordifen, ruby and Yi Xia, its brand number increased from four in early 2014 to nine in the first quarter of 2015.

According to the report of urban beauty, the total revenue, operating profit, profit attributable to shareholders, gross profit margin, basic earnings per share and other indicators of the company have increased to varying degrees last year, of which the profit growth rate of shareholders should be 54.3%.

In the total revenue of 4 billion 7 million yuan, the sales revenue of franchisee reached 2 billion 690 million yuan, accounting for 67.1%, and the sales volume of bra sales reached 1 billion 850 million yuan, accounting for 46.3%.

　　 Urban beauty The clothing market has a relatively anti cyclical nature. Underwear products, as a necessities for people's lives, have strong resilience. Therefore, in recent years, China's clothing market has maintained a steady growth rate. In 2014, China's clothing retail market grew by 14.4% to 221 billion 800 million yuan, which is 12% higher than that of the total retail sales of consumer goods.

In terms of total retail sales, urban beauty in China in 2014 Intimates Market share accounted for 2.9%, including bra, underwear, pajamas and all kinds of products. Leisure wear Ranked first in terms of retail sales, ranking third in the retail sales of thermal clothing.

In terms of stores, urban beauty opened 980 new franchises and 256 self operated stores last year. As of the end of last year, there were 7026 stores, including 6049 franchisees and 977 self operated stores.

In order to cater to different consumers, the urban beauty group has made efforts to diversify its brand portfolio, and has launched two new brands in the first half of 2014, including the "secret of urban beauty" and "free time" in the first half of 2014 with the core brand "city beauty" and three branch brands "city silk", "Metropolis profusion" and "Metropolis Feng Shang". The products of the "city beauty" have been sold in more than 1000 stores, and the "free time" brand line has been sold in 23 self owned shops.

In order to effectively enhance the brand mix, the city beauty group also bought high-end underwear brand Ordifen, ruby and Ixia. As of the first quarter of 2015, the city beauty group had a total of nine brands, and the urban beauty hoped to improve the penetration rate in China's clothing market and expand the product range through multi brand strategy.