Urban Beauty Decline In Performance, Initiative To Shut Down The Countryside

It is understood that the once unbeatable extensive shop strategy met the challenge of consumer upgrading.

I feel cool.

Urban beauty is no exception. It has shifted its focus to shopping malls, shopping centers, and township level cities.

In an interview with reporters, Cheng Zuming, executive director and vice president of urban beauty, said that these two years are experiencing the "retail special year", which requires the retailer to carry out the channel pformation. The "retail shop portrait can be made according to the profit point, and the city beauty shop can open to 1.6 thousands".

Initiative to close shop

By the end of June this year,

The distribution network has 8371 retail outlets, including 6803 franchised stores and 1568 self operated stores.

Zheng Yaonan, President and chief executive of the city beauty, once said that in view of the uncertainty of China's economic development and the negative impact of micro businesses, the group has adopted a more prudent approach to tighten its store expansion policy and assess the closure of unprofitable stores.

Cheng Zuming believes that the purchase trend of domestic consumers has shifted from the initial commercial street to the shopping mall to shopping malls, electricity providers and even community stores. "Before we could open several shops in a street, we must turn off the shops with poor benefits."

In the first half of this year, the total number of urban beauty decreased by 323 stores, adding 85 self operated stores, and the total number of stores decreased by 238.

In fact, the whole shoe and clothing industry, including urban beauty, has been in the period of closing shop adjustment and pformation in recent years.

Although the number of stores is decreasing, Cheng Zuming does not think it is a bad thing, and according to the planning of urban beauty for the channel, "according to the profit point shop portrait, the city beauty shop can open to 1.6 million."

In terms of urban beauty, there are less than 5% stores in a second tier city, while large scale stores are concentrated in three or four line cities.

In 2015, the data showed that by the end of 2015, there were 8085 City stores and 1032 new stores, mainly in the three or four line cities and county towns.

Stores are mainly located in mass market retail networks including commercial streets, residential areas, pport hubs, campuses and commercial supermarkets.

Shopping in the countryside

Now, Cheng Zu Ming places the emphasis on city beauty on shopping malls.

And the high-end retail network of shopping centers, as well as the extension of five or six line cities and even townships.

"Now we are more concerned about the rental ratio than the Ping efficiency."

Cheng Zuming told reporters that compared with traditional street stores, the growth of shopping malls is better, and the bargaining power of brands is stronger than that of the mall.

Another kind of community store that is trying now is obvious in interaction with consumers.

These stores try to trap consumers' daily underwear needs in the community. At present, community stores have not been launched extensively in large communities in some southern cities.

Urban beauty has begun to try overseas markets.

According to Cheng Zuming, in India, Indonesia, South Africa, Brazil and other countries, the beauty of the city has opened many stores, of which the performance of the India market is amazing.

But city beauty is not ready to enter the European and American markets at present. "The difference between the European and American figure and Asian is too great. Chinese consumers are more comfortable. European and American consumers care about the style.

Correspondingly, European and American underwear giant brands are also hard to enter the Chinese market.

According to reporters, the secret of Vitoria before entering China through agents has been closed in several stores such as Beijing Yintai and so on. A store directly under the brand has also been withdrawn from the Chinese market.

Derivative quotient

In the first half of this year's earnings report, urban beauty sales revenue was 2 billion 211 million yuan, up only 0.2% over the same period last year, and net profit was 174 million yuan, down 35.63% compared to the same period last year.

Urban beauty explained that the demand for brassiere in the period without marks and steel rings increased significantly. Micro traders could react quickly and seize this opportunity at the level of supply and marketing, while the group lacked such products during the period, and sales growth was affected.

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The reason for the declining performance of urban beauty is public opinion.

Cheng Zuming said that women and children's products industry is the easiest to enter, and from the beginning of micro business to make facial mask, it is expected that they will come to the underwear industry.

"Micro businesses sell mostly basic funds, and they are agents at different levels.

Many agents themselves are our consumers. After doing the micro business, the original target consumers and the surrounding people may use the commodities of micro businesses.

But Cheng Zuming also said that the micro business life cycle in a category is 18 months, the underwear industry has ended the age of micro business, and is expected to enter the next industry next year.

In Cheng Zuming's view, the size of China's underwear market is only 3% of the first place. The market carrying capacity is large enough and the brand is scattered. This causes many unknown brands including micro businesses to exist simultaneously.

However, there is a clear gap between the domestic underwear consumption habits and the developed countries. The per capita expenditure is only about half of the latter. With the upgrading of consumption and the acceleration of urbanization, the underwear market will further expand, and this gap will soon shrink, and the brand concentration in the market will also increase.