Urban Beauty: Why Do People Shop?

Last year, the urban beauty made a profit of 425 million yuan for shareholders. If the average price earnings ratio of the domestic small and medium board is 70 times, the valuation is also close to 30 billion yuan. If we refer to the company's performance growth of over 54% last year, I'm afraid the market will give a higher valuation.

According to the current share price, the market value of urban beauty has exceeded HK $10 billion.

For this reason, the financial commentator is half laughing and half regretting that when the urban beauty was listed on the domestic small and medium sized boards, the company owner Zheng Yaonan had a minimum increase of 2-3 times.

Of course, about

This is not the key point. Even how Zheng Yaonan started from a small security guard in a supermarket took only 20 years to accomplish the history of the struggle of a listed company boss.

The point is, when the domestic apparel industry is sad, the physical stores have been hit by the electronic commerce.

It has opened more than 7000 stores in more than 330 cities across the country, and the speed of opening this shop is increasing at the rate of 1000 per year.

At first glance, I was shocked to see this figure. I should know that Lining was in the background.

On the way, in 2008, Lining expanded the number of stores from 5000 to more than 8000 in 2011 through the east wind of the Beijing Olympic Games. Then, it was difficult for Lining to support the inventory pressure brought by channel expansion. By the end of last year, the number of stores had decreased to more than 5600.

In the traditional business form, there is a contradiction between store expansion and stock backlog, although each company spends huge capital on data management systems such as ERP, but the final statement on the financial statements is still a surge in inventory balance, and the stores have to discounted sales to return cash as soon as possible, resulting in a decline in profit margins and bruising brand value.

But the movement of sports brands is not a "word" in the market, because at the same time, city beauty is setting up shop against the trend.

Where is the bottom line of urban beauty? Yu Zhenqiu, vice president and chief financial officer of the company, said: "we have done a measurement inside the company, and the company can open up to more than 20000 of the country's stores."

Why urban beauty can achieve this amount? The main reason is that the channel characteristics of urban beauty are different.

First, the products of urban beauty are necessities, which are fast moving products in modern life, but sports goods are obviously not.

Second, the investment and distribution of the stores are different. The urban beauty stores are mostly in the range of 30 to 50 square meters, and now most of the sports goods and clothing stores are averaging 150 square to 200 square meters, the investment cost of their big shops is relatively high, and they can only be opened in commercial street and pedestrian street.

But the beauty of the city has changed the mode of opening the traditional clothing brand in China. It not only opened the shop in the commercial street, the pedestrian street, but also opened the shop to the community, pportation hub and school, so that we closer to the consumer to open shop. Through this multi-channel infiltration, the city beauty only successfully opened more than 1200 shops last year, and predicted that the development of the store will be more rapid in the future.