More Than 1000 Shops, Lin Chiling, Urban Beauty To "Rural Girls"

There are few brands like HK.2298, whose word of mouth is like a roller coaster, from top to underestimate, but just ten years ago, and the performance of urban beauty has fallen to the bottom with word-of-mouth. From the performance bulletin recently released, the urban beauty of real estate business in 2019 was 4 billion 82 million, down 19.91% from the same period last year, and the net loss to mother net profit was 1 billion 298 million, down 443.1 from the same period last year. 3%, gross margin declined from 41.7% in 2018 to 22.6%, almost cut short.

Obviously, the decline of the performance of urban beauty is no longer a matter of one or two days, and the transformation has to be done. According to the results of the report, one of the transformation plans of urban beauty is to prepare for a large-scale reduction in value, which will make it difficult to sell 738 million of the inventory in one time, and at the same time exempt the customer from delinquency 327 million and account for 68 million 665 thousand of the receivable impairment. The main reason for the huge loss of urban beauty in 2019 was the total staff demobilization cost and the other 51 million 776 thousand of the loss shops.

　　 Loss of draught and word-of-mouth decline.

Thousands of shops are closed throughout the year.

The city beauty was founded in 1998. Its brands include "beauty of the city", "Ordifen" and "Freeday". The products include bra, underwear, home clothes, thermal clothing, socks and so on, and landed on Hong Kong stock in 2014.

In 2012, when Wei was still at the peak of gold, the underwear market in China was very extreme at that time. It was either an expensive luxury brand, or a nameless product of a small peddlers. The city beauty appeared to fill the market gap in the middle of the market in a timely fashion. Relatively close to the people, just to meet the current women's brand and cost-effective pursuit.

This also makes the urban beauty jump into the first place of the domestic underwear brand. After 2011, the urban beauty's revenue has maintained a high growth rate and reached its peak in 2015. In just four years, the revenue scale increased from 1 billion 656 million to 4 billion 953 million, nearly three times, and the net profit to the mother at the same time increased by more than three times.

For a while, with the advertisement of Zhi Ling's sister, the city beauty stores spread everywhere. In 2015, the number of urban beauty stores was more than 8000, although there were still some gaps compared with their promises of "10000 stores", but compared with the number of other domestic underwear brands, there were only 5970 outlets in the urban beauty distribution network at the end of 2019. The store closed 1335 stores in a year, closing 137 stores and closing 1198 stores.

But blind expansion did not make urban beauty walk on the road of rising, high cost and backlog, and the most important thing was to miss the "no steel ring underwear".

The income of urban beauty is very dependent on bra. According to the results of the report, 45.9% of the sales revenue came from bra products in 2019, a decrease of 3.2% compared with that of last year. It has been traced back to the previous years. This proportion usually reaches over 50%. That is to say, the market share of bra products determines the annual performance scale of urban beauty.

But Xiao He was defeated by Xiao He. The urban beauty became famous by grabbing the middle and high-end bra market. After 2015, he lost his front foot because he missed the bra market without a steel ring. At that time, no steel ring underwear had just emerged, the market of such products was less than 10%, while the urban beauty was trapped in the layout of "Wanjia store".

Today, according to the first financial data, the overall sales volume of bra is TOP3, the brand name of Vitoria, "the secret of the city of the United States" and "the" of the "three" brand. It is also one of the top brands of the underwear market without the steel ring. Even now, we can see clearly that the average sales volume of the underwear without the steel ring is obviously that of the Tmall beauty shop. With dozens of times of steel ring underwear, it can be imagined that the impact of missing the air gap of steel ring underwear on urban beauty has brought about great influence.

In addition, in recent years, the beauty of city beauty is not very good. The search of the girl on the platform such as knowing, Xiao Hong and so on is almost all about the Tucao or "weeds" of the urban beauty, the comfort and the value of the elements and other brands such as the underwear brand and even the UNIQLO library. Yes.

　　 Store expansion, inventory backlog,

Oneself "corrupted" word of mouth.

In the final analysis, the beauty of urban beauty is still his own "bad". When he first invited her to the elder sister, she appeared to be very tall in a lot of miscellaneous underwear. But in order to realize the plan of "10000 stores", the urban beauty took the parallel way of direct camp and franchisee. Now, from the official website's information, only 14% of the stores are direct stores, and 86% of the stores are all. Franchisee.

Management of all franchised stores is a difficult problem. Urban beauty is not an exception. The hidden problem of radical expansion is that there is no way to control the location of each store, so the franchisees are also very unselective. In a few years, from the commercial pedestrian street of the second tier cities to the streets and lanes of the villages and towns, they can occasionally encounter the store hanging with the poster of the elder sister of Chi Lin, leaving the "Wanjia store". The plan is a step closer, but it also brings hidden dangers.

So many stores are not naturally profitable. In 2016, the inventory of urban beauty reached 1 billion 151 million, while the total assets at the end of the year were 3 billion 19 million, 38.12% of which accounted for 38.12%, 14.94% of which were accounts receivable, and the days of inventory and receivables turnover continued to extend from 58 days and 14 days in 2011 to 105 days and 49 days in 2019. This is what urban beauty calls. After the massive transformation of the "transformation plan".

The "sequela" of both the inventory and receivable turnover days is that the operating cash flow of urban beauty is fluctuating. Basically, there is a big decline in every year. After 2014, the rate of increase and decrease has been further increased. In 2019, the cash flow has decreased for two consecutive years, and the net outflow amount has reached 248 million.

The backlog of the stock can be said to be "100% harm" to the garment industry. Over time, the old style can only stay in the warehouse for a long time to eat, and it can not be realized. The discount sale is a must. But there are too many stocks, general discount or selling goods, so we can often see 2 or 70 percent off of the stores in the city beauty shop. "Clearance sale".

In addition, the site selection is too close to the "ground gas" franchise. Today's urban beauty has long been infected with strong local flavor. In the two tier market, the market value of urban beauty has only reached 2 billion from 21 billion 300 million in 2015. Finally, the urban beauty who began to respond has begun to seek transformation. In 2019, 738 million of the old stocks were all reduced in one breath, while the total amount of accounts receivable totaled 396 million.

Guan Xiaotong, the girl who aimed at the market.

Before the transformation, the performance of urban beauty came to a brakes in 2019, but even in the case of a huge loss of 1 billion 300 million, it did not lose its publicity. In 2019, the sales and publicity expenses of urban beauty were as high as 1 billion 613 million, up 9.65% from 1 billion 471 million in 2018. The financial reports were interpreted as an increase in depreciation and an increase in advertising discount marketing activities.

This includes the first step in the transformation of urban beauty, replacing Lin Chiling with Guan Xiaotong. In the second half of 2019, city beauty joined the new spokesperson to launch a commercial advertisement featuring "making idols". Though it took a lot of effort, the advertising effect was obviously not as amazing as that of the elder sister of Chi Lin.

However, the logic of urban beauty changing to Guan Xiaotong is also very well understood. Since last year, when Zhi Ling suddenly announced her marriage, she almost disappeared from the public eye. Even before marriage, the exposure was far less than the "national girl".

In addition, more importantly, urban beauty bra products are basically less than 100 yuan, and according to the CBNData consumption data, the consumption of bra for girls is mainly concentrated in less than 100 yuan, and the market share of urban beauty in the "50-100 yuan" mid-range price has a distinct increase. In this respect, Guan Xiaotong is also more suitable for urban than "wife" Lin Chiling. Beauty, just changed to Guan Xiaotong, did not make the city beauty quickly "salted fish turn over".

The other step of urban beauty transformation is to expand the business territory to fill the market gap in the domestic low level cities. Although more than 60% of the young consumers in the bra market come from the second tier cities, the competition pressure is also great. In fact, in the past few years when they missed the bra without the steel ring, the city beauty also missed the electricity supplier's draught. A large market, coupled with the positioning of urban beauty, price and word of mouth and other factors, sinking may be its only way out.