"Women'S Shoes No.1"

"Saturday" handed in a commendable semi annual report.

It has been 20 years since the company was founded. It started selling shoes and was listed as "the first stock of women's shoes". But from 2020, the main business of Saturday will turn to online marketing, and gradually peel off the shoe business.

Since 2017, it has acquired a number of new media companies on Saturday, and signed the industry leader MCN organization Yuanwang network in 2019, trying to find a new growth curve for itself.

In its semi annual report released on August 23, the financial data on Saturday were quite eye-catching: revenue was 1.802 billion yuan, up 77% year-on-year; The net profit attributable to the company's shareholders was 110 million yuan, with a loss of 59.14 million yuan in the same period last year.

Looking back on 2021, the net loss on Saturday was nearly 700 million yuan, the highest loss since listing. Although it's now making money on MCN, it's not enough.

　　 Stripping the shoe industry

In the financial report, the main business on Saturday was divided into two parts: Mobile Internet business and multi brand fashion shoes business.

Selling shoes is a business that started on Saturday. At present, there are several women's shoes brands such as "Saturday", "deeves" and "Sophia", which are sold through e-commerce and offline stores. It has a number of self operated stores offline, and "tmall's flagship store on Saturday" also has 2.16 million fans.

The Internet business, which focuses on advertising and traffic operation, is the main position that has been turned to on Saturday in recent years.

Since 2017, it has acquired new media companies such as fashion Fengxun and Beijing Shixin on Saturday to leverage fashion information platform and provide advertising and marketing services with women's shoes business as an introduction. The acquisition of MCN is the head of the industry in 2019.

From the financial report, the live broadcast business contributed to the current revenue of Saturday. In the first half of this year, Internet advertising and social e-commerce brought in 1.62 billion yuan in revenue for Saturday, while clothing and shoes only accounted for 170 million yuan.

The cutting of women's shoes, which has become a "thing of the past", is speeding up on Saturday. According to its semi annual report, the company is integrating its footwear sales business and assets. After the integration is completed, it plans to transfer 100% of the equity of its wholly-owned subsidiary, Saturday shoes. At present, the above-mentioned assets are in the process of the second listing transfer, with the bottom price of 480 million yuan.

After stripping off the footwear business, Saturday will move towards a thorough "online Red incubator". It is stated in the semi annual report that "according to the strategic transformation and business needs, the company will finally realize the transformation of" light "asset operation mode focusing on brand management and supply chain management

　　 "Shoe king" savior

On the way of "women's shoes first stock", MCN is the key role.

In 2019, the company officially acquired Yuanwang network on Saturday, with a direct shareholding ratio of 99.83%. The head MCN organization has become a powerful drug, and its net profit soared 15 times in 2019 on Saturday, becoming a dazzling concept stock of live e-commerce in the A-share market.

In 2020, affected by the epidemic situation, the shoe and clothing business on Saturday has been repeatedly frustrated, and 140 stores have been closed in the first half of the year. In the first three quarters, it lost money, but with its live e-commerce model, it turned to a profit of 137 million yuan in the fourth quarter, reversing the decline.

In 2021, Yuanwang's performance is lower than expected. Although the annual Gmv is about 10.2 billion yuan, the net profit is only 65 million yuan. Combined with the impairment of goodwill and inventory depreciation, the company lost 700 million yuan on Saturday.

But in the latest half yearly report, Yuanwang's performance was good: revenue of 1.6 billion yuan and net profit of 180 million yuan, almost 90% of the total revenue on Saturday.

In the live broadcast industry, Yuanwang is the operator behind many Internet Celebrities: Yu Da Zi, Li xuanzhuo, lemonade shoes... Just take "Yu Da Gong Zi" as an example. With the help of Yuanwang, he spent about a year sucking tens of millions of powder, and set a record of 368 million yuan in a single Gmv (total commodity transaction) in 2020.

In addition to the independent incubation network infrared, Yuanwang has also reached cooperation with a number of star artists. Xie Rudong, chairman of Yuanwang network, said in an interview that at present, there are nearly 40 signed artists, including Jia Nailiang, Wang Zulan, Zhang Baizhi, Huang Shengyi and other stars. In July this year, Yuanwang also signed Zheng Xiuyan, a former "girlhood" member who performed well in season 3.

This company, which entered the e-commerce field in 2019, has stepped on the right wind at every step. Wang Yuankai's position in the market has been improved

According to the financial report, looking forward to the first half of the year, live e-commerce Gmv is about 5.5 billion yuan.

　　 Where to go after "take off your shoes"?

Brand aging, users continue to elapse, but also trapped by the epidemic situation and inventory backlog, in recent years, domestic women's shoes are looking for a second growth curve.

So far, Saturday's transformation has paid off. Throughout its nearly 10-year earnings report, net profit has been all the way down, which makes Saturday has been seeking transformation in recent years. After the acquisition of Yuanwang in 2019, the profit of that year will exceed 150 million. Although the number has fluctuated since then, the revenue has stabilized at least 2 billion. If the good momentum of the first half of the year is continued, the revenue and net profit of 2022 on Saturday may reach a new high.

Despite a turnaround in the data, there are still concerns about Saturday.

On the one hand, live e-commerce is an industry with uncertainty. If it relies too much on remote network for revenue, will it be difficult to avoid risks when it comes? On the other hand, as an enterprise starting with physical shoes and clothing, will it not have much experience after the complete transformation of internet live broadcast on Saturday?

Reliance on distant vision also brings risks to goodwill. In the first half of 2022, the book goodwill value of Saturday reached 1.463 billion yuan, mainly formed by the acquisition of Yuanwang network and fashion Fengxun. In other words, if Yuanwang and other operating conditions are not as expected, there will be a risk of impairment of relevant goodwill, and the business performance on Saturday will also be affected.

Compared with other MCN organizations, such as Taiyang Chuanhe and Wuyou media, they all hold a large number of star resources, with high turnover and fierce competition. On how to make differentiation in the future, Xie Rudong said that Yuanwang pays more attention to creating replicable middle waist anchor cases. The goal is to build a multi-level anchor matrix, and hopes to change the traditional mode of carrying goods manually in the past and use technology to do live e-commerce.

According to public information, Yuanwang is actively exploring digital services such as virtual human, digital studio, virtual fashion block, etc. However, it is not known whether these actions will bring about benefits in the real world.

In any case, Saturday was determined to "take off the shoes.".

After stripping off the shoe business completely, it will become an enterprise that completely relies on Internet marketing business. The prospect of live e-commerce industry will have a profound impact on the development process of Saturday.

The financial report pointed out that after adjustment and transformation, the Internet marketing business on Saturday achieved a substantial growth; The shoes business is still suffering from losses.

The former shoe king is still exploring new possibilities on his way to self-help, but after making a decision, Saturday will also face the test of the market.