How Did Zheng Yaonan, A City Beauty, Achieve Great Deeds?

From the year's 30 thousand yuan to 4 billion 900 million yuan, Zheng Yaonan spent 18 years, and from 4 billion 900 million yuan to 8 billion 500 million yuan, Zheng Yaonan spent only a year. In a year, he succeeded in letting him rank 198 in the Hurun rich list.

(China) Holding Company Limited, the city beauty is mainly engaged in the design, research, development and sales of its own brand clothing.

According to frost Sullivan, according to the total retail sales in 2014, the group is China's largest brand clothing business.

In June 30, 2015, the group's retail network had 7675 retail outlets (excluding the acquisition of brand stores), covering over 330 prefecture level cities in all provinces, municipalities and autonomous regions of China.

The group is mainly engaged in designing, researching, developing and selling its own brand in China.

The products include bra, underwear,

And home furnishing, thermal clothing and others (including Bottomwear and tights, vest, socks and accessories).

The group effectively enhances its brand portfolio and now has 10 brands.

Compared with last year, his ranking jumped 198 places in a year and was 392 in the Hurun rich list.

When asked the entrepreneur, "how did you do it?" he laughed: "along the way, the city beauty always remember the mission of" mountaineers "and strive to move forward and not to slack off.

Moreover, the diligent entrepreneur, Zheng Yaonan, the founder of the urban beauty, gave us a surprise in the past 11 times. The city beauty broke through 30 million with sales, 3-4 times the same period last year, and once again refreshed the record.

In the first half of 2015, urban beauty reported that by June 30, 2015, the total number of urban beauty shops was 8253, including 6859 franchised stores and 1394 self operated stores. In the first half of 2015, 649 new shops were opened, with a net profit of 270 million yuan in the first half of 2015, an increase of 40.67% over the same period last year.

The city beauty has succeeds in the brand name of China's underwear sales stars, which was completed in 18 years by Zheng Yaonan.

"Heart" is everywhere.

In memory of the past, Zheng Yaonan said that he had nothing special about himself.

Once, he was just a humble entrepreneur with 500 yuan. He used to be an entrepreneur who fell several times on the way forward. He can walk to this day. He thinks it is because he has good luck and has a good team, but in others' eyes, he is different from the beginning.

Zheng Yaonan graduated from technical secondary school at the age of 20. As with most secondary technical school graduates, his qualifications are limited by the limits of his job.

In the end, he went to WAL-MART China headquarters as security guard.

The sensitivity and fineness of nature made Zheng Yaonan a star security during the three years when he was a security guard.

Because he can accurately call out all the staff names in a very short time, so he was pferred to the store.

The bustle of the store brought Zheng Yaonan into the world of sales, and made the young man start to stir up trouble.

He discovered that he was very interested in sales. He liked to see how salesmen sell goods and see what the consumers like.

At one time, it was night shift. "At that time, because of the time difference, many foreign" experts "came to the company in the middle of the night to do remote data exchange with the United States.

For the first time, I knew that being an excellent salesperson depends not only on simple mouth work, but on scientific data analysis.

Zheng Yaonan realized the importance of data by accident.

Looking through the commercial news of the last century, we can see a lot of case analysis about WAL-MART data application, but Zheng Yaonan can feel this way, but many security guards can not do it.

In the three years of the store, self-taught learning made Zheng Yaonan start planning for himself.

He wants to go out and create a world of his own.

And his curiosity at WAL-MART eventually became the driving force for his business.

Keen observation ability, unremitting research spirit of target consumers, core competitive value of products, and efficient operation mechanism for enterprise operation.

Zheng Yaonan opened a cosmetics shop with 20 thousand yuan. He thought that women's money should be the best way to make money.

In order to expand the market, he opened a cosmetics shop, a restaurant, a stationery store and a bookstore for a year.

He is actually the boss of 8 stores. As we all know, if we expand rapidly and have different categories, the reserve forces such as talent, logistics and management will not keep up. The result will be devastating.

"The biggest lesson I learned from that failure is to concentrate."

In 2001, Zheng Yaonan was no longer impatient. He settled down and chose to make underwear.

For sensitive Zheng Yaonan, it was not difficult to set up a table, but in 2005 he encountered another crisis.

This crisis is still the pain of expansion.

"High speed expansion in 2006, brand building, shop opening, investment, where all spend money, great pressure.

So the biggest problem I met in that year was the problem of rapid expansion and capital. The strategy I was taking then was to communicate with suppliers, honestly face the problems I have now, get their understanding, and attract two of the most important suppliers to be my partners, and now they are our shareholders.

Zheng Yaonan told reporters.

However, this crisis made Zheng Yaonan realize the importance of risk control and began to pay more attention to market research.

Because the risk of expansion can be erased by high sales, and if things are sold well, there will be no problem with capital.

So, as long as there is time, Zheng Yaonan is wandering around the stores. He is looking at the shopping needs of consumers. Later, he came to a conclusion that different areas have different needs for products because of the different passenger flow. For example, some styles of youth are sold well near the school, and high-grade families, sexy and comfortable home are sold well.

The conclusion is that Zheng Yaonan's expansion career is back on track.

Not only that, Zheng Yaonan also compared the consumption data of shopping malls and communities, he found that in order to compete with mature brands such as ancient and modern, brand, and so on, the emerging brands such as urban beauty are hardly competitive, and they will bear more cost. So he chose to open shop in the community, and each store was set up according to the characteristics of the community.

No one thought that this strategy suited to local conditions pushed the urban beauty to the summit of the cause.

Over the past few years, the whole industry has been shouting, "winter is coming," but city beauty keeps on making beautiful pcripts.

In order to give the company a better future, in 2014, after the preparation, the urban beauty was ready to go public in Hongkong.

The news of the listing made many people sigh with emotion.

In March this year, the city beauty successfully bought the famous high-end underwear brand "Ordifen", while developing the mass underwear market and expanding the high-end layout.

After the acquisition of Ordifen, the retail sales of urban beauty accounted for 3.2% of the total market, and its retail market share exceeded second to fifth largest market participants.

After that, the city beauty company entered into a cooperation agreement with Walt Disney group, authorized the introduction of the personal clothes with Disney cartoon characters, and co operated with Sanrio Group, and has launched the famous cartoon characters such as Hello Kitty and cool penguin, which greatly enriched the fashion elements of the product.

From Zheng Yaonan's acquisition plan, we can see that this brand has begun to develop towards the whole category, and no longer rely solely on the middle end market.

"We need to attract consumers from all walks of life and tailor different underwear categories for different consumers."

City beauty comes to today, though it relies on a good and inexpensive sales strategy, but now the brand has matured, so the derivative of the new category will bring new vitality to this brand.

Zheng Yaonan's new initiatives are considered by the industry as an inevitable process and a need for the development of an enterprise.

And, the city beauty has made a complete set of data system, the sales of the shop every day, all through the database, so the city Li can adjust the distribution of the stores in time according to the sales situation, which is also a performance of the city beauty with the times, Zheng Yaonan is very proud of this system, from the security, he has already realized the importance of the data, so, for the application of large data, Zheng Yaonan is not vague at all.

He hopes that, with the development of "multi - category, multi - angle, multi - level" of urban beauty, the brand of city beauty can be made to be the brand of all kinds, and make up the top of the list.

People who have been to city beauty in the headquarters of Fenggang town in Dongguan, Guangdong are all puzzled that a company in town can rank first in the sales of Chinese underwear market.

Researchers from many international financial institutions in Hongkong also have similar doubts.

But when the researchers got the public information of urban beauty, they were all surprised.

China's most authoritative commercial statistical institution, the China National Business Information Center, can only shake its head: "their channels are mainly roadside stores, and our existing statistics can only cover large shopping malls, but they can not be counted at all."

So, a company with such outstanding performance has not attracted their attention for such a long time.

In 2014, the urban beauty business income nearly 3 billion yuan, has surpassed the then well-known in Hongkong market, Li Fang, in 2014, the business income of an Li Fang was 2 billion 200 million yuan.

According to the introduction, in 2014, the share of urban beauty in the bra market has exceeded 3%, ahead of ANN Li Fang and admiration.

The most surprising to the researchers is that the growth rate of the same industry is declining, but the urban beauty has maintained a 30% growth rate.

Thus, a research report full of exclamation marks was sent to Hongkong headquarters.

In June 26, 2014, the city beauty company was successfully listed in the stock exchange of Hongkong in a rush of investment agencies, and formally entered the capital market.

It is said that second days after the listing of the city beauty company, it was not yet time to celebrate, and Zheng Yaonan went straight to market research.

With this persistence, in the first financial year of listing, the income of urban beauty company has increased by 38%, and net profit has increased by 54%, reaching a new high.

Supported by this beautiful performance, the city beauty company has also been recognized by the capital market. Its growth in the market value of the Hongkong stock exchange has increased by HK $5 billion in a few days. Over the past year, the market value of the city beauty company has not risen to HK $18 billion, up to HK $18 billion.

In 2011, the city beauty chose Lin Chiling as his product spokesperson. Lin Chiling's purity and earnest make the brand add a bit.

In November 2015, the city beauty held 1 billion celebrations of underwear sales in Beijing. Lin Chiling also came to the scene to express his views on the development of the brand.

"I am both a spokesperson and a designer, so I know how good the team is and how hard Mr. Zheng Yaonan is."

Lin Chiling believes that this brand has always been working in a sincere way, so it will go farther and farther away.

The employees of the city beauty shop are also keen on this sharp eye and are good at accepting suggestions.

Zheng Yaonan once visited the store and asked if he could add men's underwear. "Because many women customers asked if they could buy men's underwear." after listening to their employees, Zheng Yaonan recorded them with great care. After going back, he decided that 10% of men's underwear would be added to the store. The increase of 10% would bring more guests to the city beauty.

So, is community opening up to cater to consumer preferences really the key to success of urban beauty?

Carefully comparing the difference between urban beauty and admiration, we can see that the route of urban beauty is mainly the sale of mid end products. "Consumers feel that underwear is too expensive to buy, too cheap to be reassured, so that the premise of ensuring quality is reduced to the lowest price. The sales price of the industry should be increased by 5 to 8 times the production cost, and the urban beauty only adds 3 times."

Zheng Yaonan said frankly.

Cheap and attractive products have attracted a large number of repeat customers for urban beauty.

According to the data of international famous market research organization, in the past 5 years, from the perspective of product positioning, the market of China's personal clothing market is only 8.6%, the low-end market is 7.9%, while the mass market is 21.7%, and the market share is 52.4%.

From the point of view of sales channels, the annual growth of shopping centers and supermarkets has been declining, while independent brand stores have maintained more than 50% growth.

The middle end strategy of urban beauty can not only effectively grate the strong underwear production capacity of the Pearl River Delta region, keep the inventory turnover rate higher than that of the industry competitors, but also open the stores to the community, not only get lower store rents than the shopping centers, but also more frequent contact with consumers, increase sales volume and increase product styles, and achieve higher marginal revenue on the basis of the rated cost.

Now, in order to further enhance the core competitiveness of the brand, urban beauty has pformed from the early stage of production and marketing into a "light asset" development model. Zheng Yaonan stripped the production link from the production chain, and closed the factory, and sold all the energy and capital into the design and R & D module, forming a "light asset and redesign" company.

There are 3000 kinds of design and Development styles of urban beauty every year. Among them, 1000 new products are listed and sold, forming a fast fashion mode of underwear industry.

The city beauty now has 10 brands to cater for customers over the age of three, from the public to the high-end market.

In order to capture the market opportunities for children and youth, urban beauty launched the brand new children and teenager brand "Mei Ya Jia" in the first half of 2015.

At the same time, the company also has women's brand "city beauty", "Metropolis silk language", "Metropolis colorful faction", "the secret of urban beauty", "brand of urban beauty" and "free time" of Korean style.

The birth of these brands brings new ideas to every subdivision market, so urban beauty can create sales myths.

Zheng Yaonan has an ideal. Although the sales of urban beauty are the top of the list, Zheng Yaonan feels that the market share of the mainstream brands in the United States is 19.1%, 20.8% and 17.8% respectively, compared with VictoriaSecret, Marks and Spencer in the United Kingdom and Wacoal in Japan, and the market share of urban beauty is still too small.