Urban Beauty Issued A Profit Warning, Expected To Lose 980 Million Yuan A Year.

In December 23rd, the underwear brand city beauty issued a profit warning, claiming that because of China's economic and internal demand slowdown, brand business activities are facing adversity. By the end of 2019, the annual loss is expected to be no less than RMB 980 million yuan. In 2018, the profits of urban beauty reached 378 million yuan.

In the announcement, the city beauty Board believes that the brand has been sold in the past to seize the market and become the leader of China's clothing industry, because the mode of operation at that time is in line with the market environment.

At the moment, the underwear industry is in the off-season, and many traditional brands are declining. Even the secret show that has been popular for many years is no longer scheduled. Blindly expanding the number of stores can only increase the stock pressure for brands, and can not bring about the corresponding benefits. At the same time, the demand of consumers is changing, and the underwear brand which pays attention to comfort and simple wind has gradually become the choice of young consumers. The fashionable sexy style of urban beauty can not satisfy the different needs of customers. In the face of this situation, the brand must make corresponding structural adjustment quickly so as to slow down the declining trend.

In order to improve business performance, urban beauty took many measures, from brand president change to spokesperson's new and old alternation, and then to store image renewal. Faced with a loss of up to 980 million, the announcement also said that the brand will strengthen investment in e-commerce channels, diversify sales channels, expand business territory to fill domestic market gaps, and strictly control costs and cut unnecessary expenses.

Opening up the sunken market and embracing e-commerce channels, urban beauty expects to gradually restore the brand's sound profitability through these means. But for the market that shows weakness, whether these small shocks can bring good repercussions is still unknown.

Author: Chen Zhuo