City Beauty Future Store Plan

In the present majority Textile and clothing The operation of listed companies is not very good. Urban beauty's 2014 year report card is very prominent. Data show that urban beauty sales revenue in 2014 was 4 billion 7 million yuan, an increase of 37.4% over the same period, and the profit was 425 million yuan, an increase of 54.3% over the same period last year. Net profit was 448 million, an increase of 54.3% over the same period last year.

The rapid growth of revenue and the speed of urban beauty shop are inseparable. The sales revenue of urban beauty 67% is achieved through sales and franchisees. By the end of 2014, urban beauty had 7026 stores, including 6049 franchises and 977 self operated stores, covering all provinces and cities throughout the country. City beauty executives have said on many occasions that urban beauty will realize the "Wan Dian plan" in the next few years. However, at present, the domestic economy is in a new normal state. Can the "Wan Dian plan" of urban beauty be implemented as expected?

Zheng Yaonan, chairman of the city beauty, told reporters that the new normal gave him more opportunities, because now many people are afraid to open shop and fear that they will not make money by investing. "The business model of urban beauty is low in investment cost. It costs about 300 thousand to invest in a store, but the rate of return is high. The cost can be recovered in 12-18 months, so we will open more stores." Zheng Yaonan said.

At present, most of the textile and apparel listed companies are not in good condition. The 2014 year report of urban beauty is very prominent. Data show that urban beauty sales revenue in 2014 was 4 billion 7 million yuan, an increase of 37.4% over the same period, and the profit was 425 million yuan, an increase of 54.3% over the same period last year. Net profit was 448 million, an increase of 54.3% over the same period last year.

The rapid growth of revenue and the speed of urban beauty shop are inseparable. The sales revenue of urban beauty 67% is achieved through sales and franchisees. By the end of 2014, urban beauty had 7026 stores, including 6049 franchises and 977 self operated stores, covering all provinces and cities throughout the country. City beauty executives have said on many occasions that urban beauty will realize the "Wan Dian plan" in the next few years. However, at present, the domestic economy is in a new normal state. Can the "Wan Dian plan" of urban beauty be implemented as expected?

Zheng Yaonan, chairman of the city beauty, told reporters that the new normal gave him more opportunities, because now many people are afraid to open shop and fear that they will not make money by investing. "The business model of urban beauty is low in investment cost. It costs about 300 thousand to invest in a store, but the rate of return is high. The cost can be recovered in 12-18 months, so we will open more stores." Zheng Yaonan said.

Zheng Yaonan, chairman of city beauty

　　 The following is an interview:

　　 South Korea's light fashion style underwear will become a new profit point.

　　 Reporter: What do you think of the market space of Chinese underwear?

　　 Zheng Yaonan: China's personal clothing is divided into the mass market, the high-end market and the low-end market. The low-end market is shrinking, the market share is gradually decreasing, and the mass market and the high-end market are constantly increasing. In the fast growing period of Chinese consumers, I think the underwear market in China will have hundreds of billions of market space.

　　 Reporter : What are the targeted marketing plans for urban beauty?

　　 Zheng Yaonan: Urban beauty In the course of development, we have done a lot of action. The mass market has already taken a very important action. We find that there are still very blank markets in the underwear industry. For example, the 18 to 28 year old consumers like the Japanese and Japanese style underwear. We have launched the corresponding Korean fashion style underwear series, which is the new profit support point for the company in the next 5 years.

There is diversification strategy. Urban beauty now has nine brands, such as urban couple, city silk language and so on. It is a popular underwear brand. After the acquisition of Ordifen brand, the high-end series also has a layout. We also have two men's brands, as well as underwear and household clothes for teenagers and children. We are the development of small underwear and underwear. At present, bra is the trump card of urban beauty, accounting for 50% of the total sales revenue in 2014. Besides, there are other categories, such as underwear, household clothes, thermal clothing, bottoming bank, vest and accessories.

　　 Reporter : Speaking of diversity, do urban beauties develop across industries in addition to the underwear industry? Such as finance or other popular industries?

　　 Zheng Yaonan: At present, it will not involve other industries. The space of underwear industry in China is so large that I want to use ten years or more time to become the leader of Chinese underwear market and even enter the global market.

　　 Reporter : Will urban beauty enter the overseas market?

　　 Zheng Yaonan: Urban beauty is pursuing steady progress and will not expand the global market immediately. If we go out, the overseas market of urban beauty will mainly be in Southeast Asia. Their figure is similar to that of our Chinese people. There should be many opportunities.

At present, energy is still expanding the domestic market. In the southern part of the country, it contributed 45% to the sales revenue in 2014. Although the proportion of revenues in the southwest and North China is relatively small, the growth rate in recent years is very high. From 2011-2014 years, the sales in the southwest region increased by 45%, and the annual sales in North China increased by 80%. These two regions are the focus of the future development of the urban beauty, and can provide the company with new growth space.

　　 Clothing industry's biggest proposition: inventory control

　　 Reporter : There are many examples of bloody struggle in the clothing industry and stock market. Do you think urban beauty should be fast fashion brands, including fast inventory turnover?

　　 Zheng Yaonan: The days of inventory turnover in urban beauty are 59 days in 2012, 72.3 days in 2013, and 78 days in 2014, which seems to be more than a year. In fact, this is mainly due to the increase in sales of our outlets, and when sales of franchised stores are sold to franchisees, it has already happened. The increase in the number of outlets will increase the turnover days.

Urban beauty in the first half of 2014, the number of days of inventory turnover is 85.2 days, and now it becomes 78 days. Our control of inventory has increased, mainly through two ways to control the number of days, automatic replenishment system and inventory integration. Therefore, we will have better control of inventory this year.

Our accounts receivable turnover days are maintained at 21 or 22 days. Many clothing companies are at least 90 days old. Our accounts receivable control for franchisees is very strict. Franchisees must pay before delivery.

　　 Reporter : How many days do you think the number of days of inventory turnover is an ideal state?

Zheng Yaonan: no matter what the stock of franchised stores and direct stores is, we will treat them equally. Our company thinks that the number of days of inventory turnover is about 80 days, which is a reasonable number of days. In fact, the franchisee's inventory is low, about 60 days, and the direct store is slightly higher, because we have to stock up with the franchisees in the backstage.

　　 Reporter : The increase in the number of Direct stores will increase the number of days of inventory turnover, but it will lead to higher gross margins. At present, the urban beauty shop has a higher growth rate. How will the company balance the number of self run stores and franchised stores?

　　 Zheng Yaonan: In the past few years, we have opened fewer direct stores. In recent years, we have found through direct operation strategy that when there is a certain proportion of Direct stores, the help of the entire retail capacity can increase the retail rate of the whole franchise. Now we are not blindly expanding the number of Direct stores. The 28 law is to increase the number of direct outlets from 15% to 20% and 80% to join stores.

　　 Reporter : What kind of impact will such a strategy bring to the profits of urban beauty?

　　 Zheng Yaonan: If it is a direct operating shop gross margin will be higher, but the profit margin may be almost the same, net profit is almost the same.

　　 Annual dividends will not be lower than net profit 30%

　　 Reporter : Investors always expect the performance of listed companies to be very high. They always hope that it can maintain a high growth rate, and M & A can play a certain role in the expansion of market share. What do urban beauties think of market integration?

　　 Zheng Yaonan: City beauty 92 million bought high-end underwear brand. ordifen This brand will give us a lot of growth. Not only can we make use of Ordifen's good products, technology and brand, but also give our brand supply chain, quick reaction, innovation and retail operation capability to the brand's great vitality and motivation.

We will form a pattern, from the mass market to the middle and high end and the high-end market. At the same time, we will also introduce brands with different dimensions, such as age and income level. This overall strategy will have a very big impact on the future of urban beauty in the next five to ten years.

　　 Reporter