Brand Financial Report: 77.6% Of 361 Business Income In 2022

On March 16, 361D International Co., Ltd. (hereinafter referred to as "361D") released the 2022 annual performance announcement. According to the announcement, the Group's income reached 6.96 billion yuan, up 17.3% year on year, and the profit attributable to equity holders was 750 million yuan, up 24.2% year on year.

Picture source: 361 degree 2022 performance announcement

Specifically, the 361 degree core brand product business contributed 77.6% of the total revenue (2021: 80.0%); The 361 degree children's business and the business classified as other (i.e. sole sales) contributed 20.7% and 1.7% of the total income respectively (2021: 18.7% and 1.3%).

More than 8000 stores in the world

The report points out that as of December 31, 2022, 361 has more than 8000 retail outlets in China and the world. Among them, the number of 361 major brand stores in mainland China was 5480, a net increase of 210 on a year-on-year basis; There are 2288 361 degree children's stores in mainland China, with a net increase of 392 on a year-on-year basis (412 of which are located in 361 degree brand authorized retail stores, and sell 361 degree core brands and 361 degree children's products at the same time); 1192 overseas sales outlets.

By region, there are 1247 361 degree authorized retail stores in the western region, accounting for 22.8%; The number of 361 authorized retail stores in the northern region is 2631, accounting for 48.0%; There are 604 361 degree authorized retail stores in the southern region, accounting for 11.0%; There are 998 361 degree authorized retail stores in the eastern region, accounting for 18.2%.

In 2022, 361 will continue to focus on consumers, capture new trends in consumption habits, and provide consumers with excellent shopping experience. As of December 31, 2022, the number of 361DU brand's latest ninth generation image stores has increased to 2664, accounting for 48.6%, an increase of 20.4% over the same period of the previous year. It is reported that the ninth generation image store combines lightweight and simple decoration and rich props to improve the store image while reducing decoration costs, enriching shopping experience and effectively improving store efficiency.

In terms of 361 degree children, as of December 31, 2022, the number of the latest fourth generation image stores has increased to 1642, accounting for 71.8%, 26.4% more than that as of December 31, 2021.

E-commerce business * * * increased by 37.3% year on year

In the post epidemic era, 361 times proposed the simultaneous development of offline physical terminal stores, online e-commerce and new retail channels, and promoted the upgrading of consumer experience through omni channel retail.

During the reporting period, the smart retail system was launched in terminal stores, and the number of stores covered was increasing. 361DO also provides rich membership rights for target customers by improving the attractive membership system. At the same time, through the refined operation and management of the members, the efficiency of the member group is started and the consumption stickiness is enhanced.

In 2022, 361 will continue to invest more resources to improve the existing e-commerce system, and increase marketing efforts to promote the development of e-commerce business. During the reporting period, the sales revenue of 361degree online special offers increased by 37.3% year on year to 1.685 billion yuan (2021: 1.227 billion yuan), accounting for 24.2% of the total revenue in the year under review (2021: 20.7%).

361 points out that e-commerce business shoulder multiple missions. On the one hand, it is an important channel for brand product sales, and on the other hand, it is also an important platform for brand image building. The Group mainly carries out e-commerce business through well-known e-commerce platforms such as Tmall Taobao, JD, Vipshop, and new platforms such as Pinduoduo and Tiaoyin. At present, the online platform mainly sells online specialty products. The design of online specialty products focuses on "high performance", "high appearance" and "individuality", which is different from the products sold in physical stores. At the same time, we will assist the group distributors and their authorized retailers to clear some out of season inventory products.

As of December 31, 2022, the income of the "other" group of 361 degrees is * * * 121.8 million yuan (2021: * * * 78.7 million yuan), accounting for about 1.7% of the Group's total income (2021: 1.3%). According to the report, the income of the "other" group business refers to the income generated from the sale of soles to independent third parties by a subsidiary company of 361DU Group with 51% * *.

IP co branded products achieve breakthrough

At the moment when young consumers are pursuing personalization, IP co branded products become new consumption traffic passwords. In 2022, 361 degrees will also accurately grasp the consumption trend for market promotion, further combine brand communication with consumer preferences, and achieve breakthrough for young groups through resource empowerment and IP co branded series of products.

During the reporting period, 361 joint branded products such as Santi, KAKAO FRIENDS, Leshi, Sanxingdui, etc. were launched successively, and achieved strong sales performance. The revenue contribution of Liancheng series will reach nearly 5% of the overall revenue in 2022.

In 2022, 361 degree children also launched "China Aerospace ? Space Innovation", Dunhuang, Little Monster, Mifei, Sanrio, NONOPANDA, KAKAO FRIENDS and other IP co branded products.

It is worth noting that in 2022, 361 children will open the first main space store in Anyang City, Henan Province, with the space silver as the main color with a full sense of the future. The display of "China Space Station", "astronauts" and other Chinese space technology elements will immerse consumers in the charm of space.