How Can The Urban Beauty Get Out Of Trouble In The First Half Of The Year?

2019 is definitely a cold year for the garment industry.

From Forever 21, which was popular with young girls, withdrew from China and filed for bankruptcy protection, and then to Gap, a fast fashion brand, overburdened the closure of one of the most famous flagship stores in the United States.

Many people did not think that even for 24 years, the "secret show" that once swept the world was announced under the pressure of operation.

At this time, on the other side of the ocean in China, a brand known as "China's Secret" is also undergoing the test of life and death. It is Lin Chiling's Chinese high-end underwear brand, the urban beauty.

The city beauty landed on the Hong Kong Stock Exchange in 2014. The market value is as high as HK $16 billion 100 million.

In the whole underwear market of China, the market share of underwear brands ranked second to fifth is not as good as the first city beauty group. As a result, urban beauty has been sitting on the throne of the Chinese underwear brand.

But I often say, "business is ups and downs, nothing remains the same." the city beauty who has experienced a short period of glory soon ushered in her own doom.

In July of this year, 02298.HK released the early warning report for the first half of 2019. It is expected that the total profit attributable to the owners of the company in the six months ended June 30, 2019 will drop by no less than 80%.

Compared with bad earnings reports, what is more sober is the performance of urban beauty in the capital market. As of October 10, 2019, urban beauty received HK $1 / share, with a total market value of HK $2 billion 249 million.

That is to say, compared to the peak of HK $16 billion 100 million, the market value of urban beauty has evaporated more than HK $13 billion 800 million.

One

In 1995, Zheng Yaonan, the founder of the 23 year old city beauty, went to Shenzhen alone after graduating from secondary school with a longing for the big city.

When he first arrived in Shenzhen, the busy streets and towering buildings soon gave Zheng Yaonan a lot of illusions about the future. But even so, in reality, Zheng Yaonan was soon defeated.

Because he had no social experience and no skill, Zheng Yaonan could not find a decent job in Shenzhen. In the end, I had to choose to be a security guard in WAL-MART.

During the period of security, Zheng Yaonan, in addition to finishing his own job, is always concerned about consumer preferences and behaviors in the store. Not only that, Zheng Yaonan also used his time to study various kinds of psychology and marketing books.

After a period of observation and study, Zheng Yaonan decided to quit his job as a security guard to apply for the post of shopping guide. But when he applied for the job, he learned that at present, only the cosmetic shopping guide was missing. Even so, Zheng Yaonan, who loves marketing, took the job.

Although it sells women's products, Zheng Yaonan quickly learned the knowledge he learned in books and achieved better sales results. Because of his outstanding ability, Zheng Yaonan was quickly promoted to the sales director.

After 2 years' sales supervisor, Zheng Yaonan's ambition again started to resign. He quit his job and chose to start his own business.

By accumulating experience, Zheng Yaonan's cosmetics store has expanded to 10 in less than 1 years, and he has made the first 1 million of his life.

This success also made Zheng Yaonan start to expand and began to invest in various fields. Besides cosmetic shops, it began to involve restaurants, bookstores and other retail businesses. But as the saying goes, cross the line, such as mountains, Zheng Yaonan cosmetics in this marketing way does not apply to all industries, and therefore, soon Zheng Yaonan spent all his savings.

But when Zheng Yaonan was in a terrible state, he discovered new business opportunities. Once, Zheng Yaonan found a small booth selling underwear, surrounded by a lot of girls, so he stopped to observe for some time. An hour later, Zheng Yaonan was surprised to find that underwear sold for only 10 yuan sold more than 100 pieces in only one hour, and this discovery also made Zheng Yaonan see the huge business opportunities hidden in women's underwear.

Two

After all, Zheng Yaonan went around to raise money. In 1998, she set up a "city beauty", aiming at women underwear in the mid market.

At that time, the domestic underwear market was highly polarized, and domestic brands were all the same brand of mixed goods. Besides that, they were expensive international brands. While the middle end market dominated by urban beauty guaranteed the quality of products at the same time, it also won the recognition of the market quickly, and the circle of powder was numerous.

And the real beauty of urban beauty is Zheng Yaonan's two important opportunities. One is SARS in 2003, and the other is the global financial crisis in 2008.

Buffett once said, "when others are afraid, they should be greedy." I believe Zheng Yaonan understands this sentence most thoroughly.

Taking advantage of the low cost of the 2003 SARS period, Zheng Yaonan went against the trend and expanded to more than 50 stores. After getting through the SARS, the more than 50 stores also brought the urban beauty into the golden age.

In 2008, the financial crisis, in the face of all the downturn in the industry, Zheng Yaonan launched again, bought a large number of workshops, built a perfect supply chain for urban beauty, accelerated the expansion of urban beauty, and quickly surpassed many competitors.

After the layout of the market has been completed, the urban beauty has long been ready for everything.