Urban Beauty: Acquisition Of Ordifen And E-Commerce Channels Become Highlights

In March 2nd, city beauty announced the purchase of high-end underwear brand Ordifen at a price of 92 million yuan. The announcement shows that the acquisition is an indirect and wholly owned Affiliated Companies Tianjin city Ordifen. After the acquisition, the urban beauty will have the brand owned by the counterparty. Intimates Product design, research, development, sales and manufacturing business, including but not limited to Ordifen, ruby and Yi Xia brand.

For the acquisition, public information shows that urban beauty sees the advantages of Ordifen in channels (in department stores and shopping malls). Distribution channel Relatively perfect) and high-end market brand image.

Ordifen is one of the first batch of high-end underwear brands entering the mainland. After 23 years of development, it has accumulated a large number of users, patents, technology and user data in mainland China, which has a large brand value. Zheng Yaonan said that after the acquisition of Ordifen, the company acquired high-end and high-end consumer and customer groups. The key to winning the brand was 23 years. On the one hand, it filled the gap of the high-end brand of the company, so that the company had a whole range from the public to the high-end. brand On the other hand, its technology and patents accumulated over the years will enhance the design and R & D level of other brands.

Another highlight comes from the construction of e-commerce channels. In February 2014, the company launched an e-commerce platform and joined hands with famous online sales platforms such as Tmall, vip.com, Jingdong and No. 1 store since the second quarter of 2014. City beauty vice president, chief information officer Sha Shuang disclosed that the company 2014 electricity supplier channel sales scale of 77 million 370 thousand.

Sha Shuang believes that from the industry perspective, the share of underwear sales accounted for 2.9% in 2014, far below the industry development of garment industry. The undergarment industry is later than traditional retail development. Therefore, the compound growth rate is expected to exceed 30% in the next few years.

He said that the company will implement a number of initiatives to ensure that the level of profit under the premise of expanding the online sales network, increase the flow of e-commerce platform and promote online sales, and strengthen the integration of online and offline sales channels. Among them, in order to strengthen the interaction between online and offline marketing, franchisees will also profit from the business of e-commerce. If consumers use the registered account opened in the franchisee to consume on the website, franchisees can also enjoy this order.

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Zheng Yaonan revealed that the urban beauty will mainly exert itself in five major aspects in the next three years.

First, the company will firmly implement the multi brand strategy. The company currently has nine brands (Urban couple, city silk, city colourful faction, urban beauty, etc.), and two men's underwear brands. After the acquisition of high-end brand Ordifen, the company's brand will cover from the mass market to the high-end market, showing the solid depth of the whole brand.

Second, we should continue to promote multi-channel strategy. At present, urban beauty channels are distributed throughout the physical network such as community, commercial street, shopping plaza, business super school, and even schools. The development of e-commerce channels in 2014 has become the sixth channel after five stores. In addition to the continued penetration of developed areas, the region opens shops in the northwest, southwest and North China. "The company will carry out comprehensive penetration of the channel this year, and has also entered a very important opportunity for the development of the north." Zheng Yaonan said.

The third is to improve supply chain integration. Zheng Yaonan pointed out that the gross profit margin of the company increased rapidly in 2014, and the next step will be to invest more funds in the supply chain. To cope with the rapid expansion of the retail network, the group plans to build three regional logistics centers in Dongguan, Tianjin and Chongqing, in order to further enhance logistics capabilities and shorten the time required to send products to the market. Dongguan new logistics center is scheduled to open in the second quarter of 2015, and the Tianjin logistics center is expected to start in the second half of 2015.

Fourth, we will vigorously enhance the brand image. The city beauty has hired Lin Chiling as the brand spokesman of the urban beauty. Huang Xiaoming is the spokesman of the city front. At the same time, he will increase various publicity channels such as media advertising, brand communication, fashion show and so on. Zheng Yaonan also revealed that the city beauty will launch its top fashion underwear show in April 17th. Its brand spokesperson Lin Chiling will come to help, and will make it into a top Asian fashion show comparable to Vitoria's secret show through 4D live broadcast and other means to further enhance the brand image.

Finally, the design and research capabilities will be improved. Urban beauty will acquire more technology and patents after acquiring Ordifen. The company will organize large amounts of big data according to the different markets, regions and consumer groups to improve product development, design and precision marketing. To improve design capabilities, the Group actively seeks to cooperate with leading designers and launch products with international brands. In 2014, the company launched a new product line Hello Kitty close fitting clothing product with Sanrio Group. The company also works with MITSUBISHI and Japan to develop thermal underwear.