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    Market Value Evaporated 8 Billion! City Beauty Fell To The Altar, And Lin Chiling Could Not Save It.

    2019/8/5 13:15:00 2

    Urban Beauty

    The secret of "the secret of Vitoria", the most sexy underwear brand in the world, cancelled the 2019 underwear show.

    But it seems that even straight men are not so concerned about the show.

    Once gathered in the world's top models and the top stage of the music industry, it has seen more than 12 million of the audience, and FantascyBra has the most popular stunt product of tens of millions of dollars. But by the year 2018, the total number of viewers had dropped to 3 million 200 thousand, which was only close to the 1/4 of that year. The show of Shanghai Xiu Xi Meng Yao was caught hot.

    The secret show is not working, customers are losing millions, and their performance is declining. It is difficult for them to get married. After all, Xi Mengyao is going to get married soon.

    So, China's Secret days are not very good. In recent years, sales were nearly 5 billion, and now its performance has been declining. In the past 4 months, the market value has shrunk by 8 billion, and net profit in the first half of this year is expected to decrease by 80%.

    What is China's secret?

    The city beauty, once the star spokesperson - Lin Chiling, now the spokesman Guan Xiaotong.

    However, Zhi Ling's sister is also married, preparing to have children, and Guan Xiaotong is catching up with the decline of urban beauty.

    One

    Lin Chiling's endorsement in 7 years!

    To create underwear, Nike has become a "Shaxian County snack".

    The beauty of city was founded in 1998. Its appearance has filled a gap between Chinese women's underwear market and high-end brands. At the same time, it has also changed the traditional underwear sales model to a large extent, and sold all kinds of items related to personal clothing to the same store. It has become the "one-stop shopping" model for the underwear industry.

    From the original pure agent mode to the later brand, the urban beauty can be called the rise of the counter trend, and has gone through two times of bottom hunting and a leap.

    For the first time, during the SARS period in 2003, the number of stores in the city was rapidly expanded from 10 to 50 because of the low cost of shops.

    The second time was that during the global financial crisis in 2009, the cost of enterprise acquisition was reduced. During this period, the urban beauty bought only half of the original price and bought several enterprises.

    After that, 2012 became a turning point for urban beauty, because in this year, urban beauty signed Lin Chiling as spokesperson. This generation is 7 years.

    It can be said that the fame of the urban beauty is very important to Lin Chiling. Since 2012, the beauty of the city has been on the way.

    Compared to the brand with a basic price of more than 100 yuan on the market, the average price of urban beauty products is between 50 and 80 yuan, but by increasing the rate of sales and reducing the discount rate, the stores will achieve 60% to 62%, and the gross profit of the stores will be more than 40%.

    First of all, it is to increase production and reduce costs. The output of the general brand is basically around 100 thousand, while the urban beauty does 1 million things.

    Second, do not increase the price, and the discount rate is low, and then according to different product cycle targeted discount sale, in order to improve the sales rate, not all products are in the recession period began to discount, as long as the product is unsalable, even if just entering the market, will immediately begin to discount.

    With a high turnover rate, the inventory turnover will accelerate. In 2015, the urban beauty sold 80 million brassiere, sold out at 90%, and the inventory turnover period was only 90 days.

    In terms of marketing, the urban beauty is also a great match. In addition to Lin Chiling's goddess spokesperson, the urban beauty has also learned the annual underwear show.

    There are model shows, there are pop music strength to play live, such as Jam Hsiao.

    Although there are not many international supermodels that can be named, but there are Lin Chiling towns, and also invited Miss Universe.

    Of course I have wings!

    Some people have begun to call it "China's Secret", and the market share in China's underwear market has reached the top.

    In June 2014, urban beauty successfully listed on the main board of Hongkong, growing from less than 7 billion Hong Kong dollars to more than 14 billion Hong Kong dollars in one year.

    The most ruthless is its store plan! In 2014, the city beauty completely surpassed that of Fang Li Fang as the largest underwear retailer in China by its number of stores. At that time, the city beauty had 7026 stores, of which 6049 were franchisees.

    By the year 2016, urban beauty had opened more than more than 8300 stores in more than 330 cities across the country through the way of franchise and direct operation, and Shaxian County snacks were just a match. The market share is around 4%, ranking first in the country, even higher than the total of second to fifth.

    However, like many traditional businesses, the city has been falling rapidly after reaching a peak, and urban beauty has not been avoided.

    Two

    Performance fell for 3 years, market value evaporated 8 billion

    China's first underwear brand fell down the altar

    From 2013 to 2014, the revenue of urban beauty increased from 2 billion 916 million yuan to 4 billion 8 million, an increase of over 1 billion. In 2015, it had ushered in the peak of its performance, and its revenue was 4 billion 953 million.

    However, in 2016, the first time the urban beauty came into the market after the listing, the revenue and profit dropped by about 8.9% to 4 billion 512 million yuan, and the profit was reduced by 55.2% to 242 million yuan.

    At that time, city beauty announced that "micro business has affected the supply of products to our suppliers, resulting in problems in the supply chain".

    Although the number of urban beauty stores is still over 7000, the number of closed stores is close to 1000 in recent 3 years. It is necessary to know that the number of new stores increased by 1000 in the hottest days when urban beauty stores opened up, adding more than 640 stores in the first half of 2015.

    Urban beauty is indeed in a difficult time.

    In the next two years, the performance of urban beauty has been declining. Just in the past July, urban beauty released a profit warning in the first half of this year. The net profit in the first half of this year is expected to exceed 80% over the same period.

    Meanwhile, from April to July this year, the price of urban beauty fell by 68.27%, and its market value shrank by nearly HK $8 billion.

    Nike, who once claimed to be the underwear industry, wants to become a brand operator and a leading retail business in China. It also has to keep the secret of the Vitoria market in terms of market share and become the 20% brand that occupies the Chinese underwear market.

    However, these goals and dreams will only become more and more difficult to achieve and even become empty talk. Look at the status of the once infamous Wei Ming.

    Three

    3000 brands divide hundreds of millions of markets!

    No user thinking, want to rely on celebrity endorsement hard to save

    This year, Lin Chiling was married, and her relationship with the city beauty was officially over. In June 21st, the city beauty announced the new spokesperson, Guan Xiaotong, 22 years old.

    Lin Chiling did play an important role in the outbreak of urban beauty. However, the decline of its performance is indeed not surprising. Guan Xiaotong's first decline in performance in 2016 was also far fetched.

    21 years since its birth, urban beauty has become an old brand.

    The root cause of its decline is arrogance.

    As mentioned earlier, the success of urban beauty comes from its brand positioning first, and on the other hand, it comes from some innovations in marketing mode. But after becoming the largest underwear brand in China's underwear market, the urban beauty seems to be inflated, and she is quickly left behind by the market.

    Over the years, the most obvious manifestation of the underwear market is diversification. 1, the brand is numerous, and there are more than more than 3000 underwear brands on the electronic business platform. 2, many other brands are also starting to make underwear. They have launched different underwear concepts to cater for different consumer needs.

    If the beauty of the city meets the needs of a large part of the crowd between the high-end and low-end underwear, then the demand of consumers is no longer satisfied by a brand, because of the diversity of demand.

    Each demand corresponds to a corresponding consumer pain spot. For example, sports underwear, which is very popular these years, belongs to the functional category. No steel rim underwear, no trace underwear, and sleeping underwear are comfortable and healthy.

    The design of products also pays more and more attention to quality, such as choosing fabrics from Dongli, Thailand, natural latex, original XXX cup, and so on, and enlarging some perceived value that can represent the quality of products.

    Another embodiment of demand diversification is that people will choose different underwear brands according to the characteristics of different types of underwear, because the role of underwear is not only a close fitting garment.

    There is a question like this: "what do you think is the best underwear brand?"

    There is a highly praised answer, "endorsing" over tens of thousands, and comments close to 1000. The answer is based on the different needs of women of different ages (such as gathering, growing, etc.), giving different underwear brand recommendations, detailed and detailed, very scary, what kind of abnormal consumers can have so many experience?

    The list is long and long, but it is very detailed. Even the secret is not mentioned.

    The reason is very simple. Selling sexier every day is the location of the founder of the product from a man's point of view. However, nowadays, when women buy underwear products, they are mostly trying to please themselves and dress themselves better.

    Similarly, the urban beauty of Zhi Ling's sister era is almost the same as that of Victoria's, and it is also sexy line. It can be seen from the 2012 underwear TV commercials of Lin Chiling city beauty.

    Moreover, similar products are becoming more and more on the electronic business platform. The user mentality has been starting to eat in the underwear industry simply by cost-effective.

    In other words, people have too many choices, and franchisees have more choices.

    Many traditional underwear brands in the past domestic market have already begun to transform. For example, red beans, such as love, have already started upgrading and innovating in the users' pain points that the products themselves can solve. 6ixty8ight, internal and external, Wacoal, and other brands have opened up in China. Universo, Zara and H&M brands have begun to emphasize underwear products.

    There are too many brands that are not known to the public. As mentioned earlier, relying on WeChat to spread sales can easily achieve huge sales volume. Perhaps the volume can not be compared with those of traditional large brands with huge sales networks and channels, but they find a consumer group accurately.

    At this point, they win the beauty of the city.

    From Zhi Ling's elder sister to Guan Xiaotong, she can understand that urban beauty wants to catch young people, but this is still the traditional way to fight stars.

    The city beauty channel advantage is very strong, and is mainly in the price war, its performance price ratio has already had no advantage in the past; want to rely on the star to take the goods, must first fix the fans, only the star is not enough, let alone many people have no loyalty to the brand, that is, any brand wants to try; the vast majority of people are equal to the urban beauty and Lin Chiling, if only mention the urban beauty, perhaps most people will first think of the shop in the three or four line city roadside shop and the pink color sign. Do we really want to build a "China's Secret" before hiring CEO and designers?

    Is the heavy urban beauty asleep?

    The decline of performance may be the throes of transformation, but one thing is whether urban beauty can return to user centered, just as initially decided to fill the market vacancy.

    Otherwise, it would be useless to find a spokesperson younger than Guan Xiaotong.

    Source: Golden wrong channel: Diik

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