Urban Beauty Releases Annual Financial Report Of 2020

On March 30, metropolitan beauty, a Hong Kong listed company, released its annual financial report for 2020. In 2020, the revenue will reach 3.057 billion yuan, and the gross profit rate will rise to 48.8%.

Due to the impact of the epidemic, the company lost money in the first half of the year. After optimizing and adjusting sales and distribution channels, improving product strength, and promoting digital transformation, the company will achieve a revenue of 1.725 billion yuan in the second half of 2020,

From a single quarter point of view, the fourth quarter of the company "into profit.". In the whole year, the company's cash flow improved, with net cash flow from operating activities of RMB 555 million in 2020 and negative RMB 248 million in 2019.

Xiao Jiale, CEO of urban beauty, said, "2020 is a different year. Despite the challenges, the urban beauty has made a smooth transition. The group's business continued to recover in 2020, and recovered its growth in the fourth quarter. As an important channel of the group, including direct stores, franchise stores, shopping center stores, e-commerce and small programs, it performed well. In 2021, urban beauty will focus on investment in consumer orientation, digital transformation, production and marketing collaboration, brand and employee capability improvement, so as to promote long-term business growth, and it is expected to achieve sales growth in 2021. "

1】 E-commerce revenue accounted for 25%, with a year-on-year growth of 21.85%

Founded in 1998 and IPO in Hong Kong in June 2014, metrobeauty is a modern large underwear brand operation group integrating R & D, production, warehousing and logistics, sales and operation. Its product line covers bra, household clothing, thermal clothing and other types.

In 2020, affected by the epidemic situation, offline stores will suspend operation in February and March to meet the demand of epidemic prevention, and online sales has become the focus of channel transformation.

According to the financial report data of urban beauty, e-commerce business will continue to maintain double-digit high growth in 2020. Its e-commerce revenue was 764 million yuan, a year-on-year increase of 21.71% compared with that of RMB 627 million in 2019.

From the perspective of revenue share, the revenue of urban beauty e-commerce in 2020 accounts for 25%, which is about 10% higher than that in 2019 (15.4%).

"Affected by the epidemic situation, the performance of urban beauty in the first and second half of 2020 is significantly different," said Li Xiang, head of urban beauty brand marketing. Benefited from the upgrading and adjustment of product and channel structure, the brand performed better in the second half of the year. " From channel driven to consumer driven, it is a major change in urban beauty brand marketing. Taking IP content construction and brand value transmission as the core, and making good use of the power of private domain to effectively activate store shopping guide and customer assets, urban beauty has a strong social fission ability. Li Xiang said, "the categories of close fitting clothes are relatively special. The trial on experience and professional service of offline stores are still very important. The huge offline system of urban beauties can complement each other better and form an omni channel expansion advantage."

In terms of smart retail, urban beauty will start to carry out small program live broadcast in the second half of 2020, and nine live broadcast will bring sales revenue of 150 million yuan to stores.

In the fourth quarter of 2020, we will cooperate with youzan to promote the development of small programs and enhance the interaction between franchisees, Direct stores and 60 million members.

In 2021, the number of live broadcast will be increased, enabling stores to bring more sales revenue, and accelerating the development of online smart retail. At the same time, urban beauty will also strengthen cooperation with tmall, Jingdong and vipshop, and promote business development on e-commerce platforms such as shuoyin, Kuaishou and Taobao live.

2】 March from the third and fourth tier cities to the first and second tier cities

From 2020, the brand tonality of urban beauty turns to practical brand positioning. At the same time, urban beauties began to march from the third, fourth and fifth tier cities to the first and second tier cities.

According to reports, the stores of urban beauties in the first and second tier cities are mainly around shopping centers and core commercial streets to create a family's intimate clothing and home life Museum. In addition to the core underwear and household clothing categories, it also includes "Guochao" cultural and recreational products, aromatherapy, cultural and creative goods, etc. "Now many men like to enter our cosmolady home shopping center stores. After the brand returns to the practical brand positioning, they will match different store forms according to different business district structures, and match people and goods yards with finer granularity. We can attract more consumers to come in. " Li Xiang said to Yibang power.

By the end of 2020, the number of seven generation stores opened and renovated with a new image has reached 691. As of the first quarter of 2021, franchisees have signed up to open about 400 stores in the future, and it is estimated that 200-300 stores will be opened in 2021.

By the end of 2020, there are 15 stores with the theme of "family life concept" opened and renovated in shopping centers.

In order to continue to implement the concept of "practical, functional, comfortable, healthy" and cost-effective, the SKU of urban beauty in 2020 will decrease by more than 30% compared with that in 2019, aiming to focus on evergreen and popular products.

Based on the product strategy of "selling the products that have been produced" to "producing the products needed by consumers", the cumulative sold out rate of urban beauty products in autumn and winter in 2020 will increase by about 10% year-on-year. The order amount of the franchisees in the spring and summer product ordering fair in 2021 will increase by more than 30% compared with that in spring and summer in 2020. Among them, body shaping underwear, home wear and men's underwear show a rapid growth.

In the autumn and winter of 2020, the selling out rate of home furnishings will reach 85%, which is the value of the past three to four years.

According to the financial report data, although the price of raw materials will rise in 2020, the gross profit margin of the group will rise to 48.8%, an increase of about 26 percentage points compared with 22.6% in 2019. The main reason lies in the product strength, the proportion of high gross profit products and the improvement of supply chain management level.

3】 Strengthen the layout of supply chain and drive new retail with data

"We started to lay out the industry very early and have deep cooperation with upstream factories." Xiao Wei, senior director of urban beauty supply chain business group, said.

With the shortage of labor, the security of supply chain delivery is also facing challenges. Stable supply chain is a scarce resource, but with the long-term strategic cooperation between urban beauty and suppliers, it has strong stickiness. And in the supply chain capacity transformation is also mutual empowerment, city beauty will help suppliers to standardize the operation and production process transformation.

After the recovery of market conditions, consumers have a great demand for orders. In 2020, a large number of urban beauty orders are based on the transformation of the factory for rapid delivery, some home clothes in 14 days to complete the design, order, delivery of a complete set of processes.

"Therefore, the supply chain should be continuously optimized and developed. This layout can bring stable benefits to our business, and it has great advantages in cost control. Therefore, in the future, we will strengthen cooperation with high-quality suppliers and move forward a little according to the ecology of the entire industrial chain. " The person in charge said.

According to the latest data, as of March 14, 2021, the sales of beauty in the city increased by about 40.2% year-on-year; the comparable growth of Direct stores in the same store was about 37.2%; the comparable growth of franchise stores in the same store was about 28.4%.

"We use data to drive the development of new retail, and the performance in the second half of 2020 benefits from the establishment of a data platform. Through optimizing the member system, refining member management, establishing a standardized member label system, building customer data platform, and precise product recommendation, precise marketing can be realized, so as to improve the purchasing rate and activity of members, and promote the marketing of private traffic of 60 million members. " He said.

It has been revealed that the city beauty is carrying out a series of training for franchisees, such as live broadcasting, drainage and carrying goods. In the management of franchisee's stores, from November 2020, we have established a store retail system, which can carry out inventory checking, real-time monitoring of sales and so on through the mobile terminal, and realize the intelligent store management by means of digital technology.

Li Xiang told Yibang power that urban beauty is gradually promoting technology empowerment and digital transformation, and the group has established a digital intelligence business school. "In terms of private traffic construction and community operation, urban beauties have come to the forefront of the industry, especially the precision marketing for subdivided groups, which will become the focus of the next step." At present, there are many competitors in the underwear industry, and the good and the bad are intermingled, but now excellent enterprises have been constantly consolidating the moat, constantly strengthening product quality, function, technology, wearing experience, marketing, brand investment.

"In the short term, the market competition in 2021 is still very fierce. In the long run, I think three years or so will be a very important watershed Li wanted to say.