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    Urban Beauty Business Revenue Increased By 37.4%, Breaking 4 Billion Yuan.

    2015/3/13 14:10:00 38

    City BeautyShopping CenterBody Clothing

    In 2014, Zheng Yaonan continued to push forward.

    Urban beauty

    "In the national weaving network plan.

    In the past year, the "urban beauty" who has determined the mass line continues to expand its sales network in the country. By the end of December 31, 2014, the number of sales outlets has reached 7026, of which the number of franchisees is 6049, and the number of self operated stores is 977. Only in the past year, the "urban beauty" has added 980 stores and 256 self operated stores.


    If you mark the coordinates of these stores on a map of China, you can see that these "city beauty" stores have already spread to 330 prefecture level cities. You know, according to the official data provided by the government, by the end of March 2013, there were only 333 prefecture level administrative divisions in the mainland of China, that is to say, only 3 cities in the country could not buy "urban beauty".

    In the direction of expansion, the "city beauty" has penetrated into the three or four line cities and the lower township market, which focuses on the main expansion of low permeability areas such as North China.

    In order to cover the sales blind spots that are hard to reach in physical stores, "city beauty" made efforts to build online markets last year besides physical stores.

    Beginning in the two quarter of 2014, the "city beauty" worked with Tmall, vip.com, Jingdong, shop No. 1 and several well-known e-commerce websites in China, and by the end of 2014, the company had over 30 million members online.

    To support the nationwide online and offline sales network, the "urban beauty" plan starts from the two quarter of this year, starting with 3 new logistics centers in Guangdong, Dongguan, Chongqing and Tianjin, where the headquarters are located. Previously, the company has owned a central logistics center and a regional logistics center in Dongguan and Tianjin. With these new logistics centers, logistics capabilities of the company in the regional market will be further strengthened and the time needed to send products to the regional market will be shortened.

    In addition to the construction of hardware facilities, "urban beauty" has spent a lot of money to build an information technology system. This system has extended to more than 7000 stores nationwide. The data collected from stores every day will be professionally analyzed at headquarters, so that the company can have a better understanding of the market, optimize the production plan, and control the entire retail network at the same time.

    At the same time, "urban beauty" is also seeking to connect this information system with upstream suppliers to facilitate the sharing of production and collection information with suppliers of raw materials and suppliers, which can further optimize the whole production process, product replenishment, cargo scheduling and inventory management.

    With the support of this powerful data system, the company effectively controlled the cost of sales and inventory last year while its performance increased significantly, making its proportion of total cost down by 0.3 percentage points.

    With the maturing of store shops in the past few years, the sales performance of "urban beauty" has been released rapidly. From the financial data, we can see that the number of new stores last year accounted for about 21% of the total number of stores, but in the past year, the company's revenue increased by 37.4%, breaking through 4 billion yuan, and the corresponding increase in operating profit reached 54.8%.

    On the basis of operating income composition, the growth of self operated stores was very obvious, from 670 million in 2013 to 1 billion 320 million yuan in 2014, nearly doubled.

    Since the profit margin of self run stores is higher than that of the franchised stores, the gross profit margin of the company increased last year, from 36.7% in 2013 to 39.1% in 2014, by 2.4 percentage points. From the operating profit margin, it also increased from 12.7% to 14.3%, an increase of 1.6 percentage points.

    It is worth noting that when the "beauty of the city" has been sinking into the sales network, it has begun to covet the traditional underwear market. In March this year, the "city beauty" bought the old brand lingerie brand "Ordifen". After taking this relatively high-end underwear brand, it also smoothly cut into the department store and shopping center market of the second tier cities that the traditional underwear brands occupy for a long time.

    According to frost Sullivan, in terms of retail sales of bra and women's underwear, Ordifen ranked fifth and seven respectively in China in 2014; and by December 31, 2014, Shanghai's Ordifen had about 614 retail outlets, including about 250 self operated shops and about 364 franchisees. From the perspective of channel layout, these stores were mainly concentrated in department stores, shopping malls and other large cities in the first tier and second tier cities in China.

    Shopping Mall

    Next, the "urban beauty" may implant its powerful information management system into Ordifen, without changing the existing brand and market positioning of Ordifen, so as to enhance the efficiency of the upstream supply chain and downstream sales channel of Ordifen, so as to reach more potential customers.

    In the future strategy, the "urban beauty" also has no secret. "The company will continue to work hard to integrate highly dispersed China."

    Intimates

    The market will further consolidate its leadership in the industry.

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