Unable To Satisfy The Inner Beauty Of The Girls, The Chinese Version Of "Wei Mi" City Beauty Lost 1 Billion 200 Million Last Year.

The spokesman changed from Lin Chiling to Guan Xiaotong, the annual salary of 8 million 580 thousand Hong Kong dollars plus 3 million shares to hire the former Adidas executive Xiao Jiale, President of the Chinese version of "Wei Mi" - urban beauty (China) Holdings Limited (hereinafter referred to as "urban beauty"), the performance in 2019 turned a big loss.

According to the financial report, in 2019, the income of urban beauty fell from 5 billion 96 million yuan in the same period last year to 4 billion 82 million yuan, down 19.9% compared to the same period last year. Net profit attributable to the parent company also dropped sharply from 378 million in the same period last year, with a loss of 1 billion 298 million yuan, a decrease of 443.9% over the same period last year, and a gross profit margin of 22.6%, down 45.8% from the same period last year. Urban beauty says the drop in gross margins is caused by a one-time write off of about 728 million yuan in old stock.

As of December 31, 2019, there were 5970 stores in the city (2018: 7305), of which 1269 were self owned stores and 4701 were franchised stores.

From the point of view of the channel, the franchisee achieved 1 billion 950 million yuan in business during the reporting period, accounting for 47.8% of the total revenue; the retail channel achieved operating income of 1 billion 379 million yuan, accounting for 33.8% of total revenue; e-commerce and raw material business accounted for 15.4% and 3% of the total revenue respectively.

For the big losses in performance, urban beauty said that the rapid expansion in the past was the key to the success of the company and to gain market leadership. However, the retail and replenishment capabilities of its franchisees were uneven, and the structural adjustment of the sales channels of the domestic clothing market, product quality and product mix led to stockpiling of the stores and stores in the company. 。

In addition, urban beauty's previous market development strategy failed to meet the needs of most female consumers for practical, functional and cost-effective products, and the productivity and profitability of stores were adversely affected, resulting in adverse financial conditions for companies and their franchisees, and many franchisees could hardly improve their resources through their own resources.

Insiders said that as China's social development entered a new stage, consumers' pursuit of a better life has become a new driving force for economic development. The aesthetic needs of the new generation of female consumers are highlighted. "Aesthetic upgrading" is becoming the main psychological motivation for consumption upgrading. Cheng Weixiong, general manager of textile and clothing brand management and Shanghai Liang Qi Brand Management Co., Ltd., said earlier that the positioning of the urban beauty itself is the popular underwear brand enterprise. The difference between the urban brand and the stalls is that the urban beauty has brand symbols, and there are large-scale chain stores. The urban beauty actually should sink further in the channel, and try to build a number of windows on the second line. The first tier market is not the main battleground of urban beauty. The products of urban beauty can not satisfy the needs of users in the second mainstream market. While strengthening the brand image of the three or four line market urban beauty store, we need to speed up the sinking of the 456 line market while upgrading the retail store's brand image. We need to speed up the market from the coastal market to the central and western regions. The regional market is sinking and the opportunity of market space is there. The key is to see the strategic layout of enterprises.

Urban beauty is also accelerating its transformation to reverse the adverse situation. The company said that it would be difficult to sell the old inventory to customers, including the expected increase in sales promotion efforts; the one-time waiver of major customers' arrears, the provision of allowance for receivable account receivables, the closure of retail stores where losses were made, the production of confiscated deposits, the reduction of store decoration, and the severance costs of various employees. The provision of decoration fees for other loss shops is up to 1 billion 185 million yuan.

However, Zhu Haibin, a researcher at Anxin, introduces the overall characteristics of the female consumption regional map. The main characteristics are as follows: the degree of consumption upgrading is gradually sinking from the first tier cities to the five or six tier cities, the quality of the second tier cities is the main quality, the three or four line cities purchase substantial benefits, and the five or six line cities are reborn. Specifically, the proportion of household demand for daily life in the five or six tier cities is significantly higher than that in the second tier cities. The proportion of beauty, books, computers and other categories in the second tier cities is significantly higher than that in the five or six tier cities, and the upgrading of consumption is in a different track.

Therefore, with the younger generation of consumers, the new middle class represented by post-90s and 00 is becoming the main consumer of the times. At present, mainstream consumer groups are more fashionable and individualized, and "fast fashion" has become the main feature. The fast selling clothing has the characteristics of fast updating, keeping up with the trend and high cost performance. It can meet the needs of women to dress up and pursue fashion, and will not bring too much financial burden to women.

The first textile network reporter learned that the bra products are still the core products of the urban beauty. In 2019, the income of the bra products was 1 billion 872 million yuan, accounting for 45.9% of the business revenue. Underwear, pajamas and household clothing products were second tier products, accounting for 18.3% and 14.1% of the total revenue, respectively. 3% and 9.9%.

According to Zhu Hai, at present, consumers are no longer the primary criteria for deciding whether to buy or not for clothing choice. They are more willing to pay for hobbies and interests. Women's consumption escalation is taking place quietly, and commodity attributes are gradually changing to product attributes. At present, under this trend of upgrading, a number of "Amoy brands" have been bred.

Hao Shuai, an analyst with Guotai Junan Securities, said that although the background of "upgrading generation" women growing up under the background of "consumption escalation" is diversified, the consumption concept shows the trend of coexistence of heavy cost performance, aesthetic appreciation and individuation. High performance price ratio, preference and good public lead. For the ordinary female consumers who pursue high cost performance and consumption, due to the limited budget of clothing, their consumption characteristics are performance oriented clothing with high cost performance and design sense. Fast fashion brand has become the most common choice for women to purchase women's clothing at the time of "upgrading generation", accounting for 46%, high cost performance, good consumption preferences, and La Natsu Bell's popular fashion brand.

And in the embodiment of the "upgrading generation" women's specific consumption power, 37% of the "upgrade generation" women will spend 20% of their personal expenses on clothing purchases, while 28% of the "upgraded generation" users will increase this figure to 30%. From the specific amount, the 38% "upgrade generation" women's monthly clothing purchase expenditure is between 501-1000 yuan, 21% months clothing purchase expenditure is between 1001-2000 yuan, and clothing purchase expenditure is less than 300 yuan, accounting for only 5%, indicating that clothing consumption expenditure is promoted. In the process of consumption, "upgrading generation" is more willing to pay premium for products of high quality and self expression in addition to paying much attention to cost performance.

However, Cheng Weixiong also admitted that the competition in the local underwear market is still not very intense. This has a fundamental relationship with the consumption concept of the local consumers, and pays attention to the appearance, image and wearing, but neglects the inner wear. However, with the change of the clothing concept in recent years, the underwear market has been differentiated and gradually progressively from low to high. The space is very big, but the urban beauty does not satisfy this kind of positioning, attempting to transform from low to high. Such a business challenge is very high. There are many local brands, but the cultivation of brand aristocrats takes time.

Hao Shuai pointed out that in the new generation of women's consumption behavior, "aesthetic upgrading" is becoming the main psychological motivation of consumption upgrading. Most women begin to pursue personalized aesthetic experience. Aesthetic elements are increasingly becoming the core driving force of women's consumption upgrading, and products that are more in line with consumers' aesthetic inclination and emotional resonance will be more popular.