Urban Beauty Is Tortured By Setting Up Shop Against The Potential.

< p > recently, the Dongguan clothing brand city beauty held a global offering to issue about 406 million shares at the issuing price of HK $3.27 per share, up to HK $1 billion 800 million from the ~4.42.

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< p > 2011 ~2013, the annual growth rate of urban beauty income is 32.7%, faster than the compound annual growth rate of 21.7% in 2009 ~2013.

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< p > the gross profit of high growth and the compound annual growth rate higher than the industry has become the highlight of urban beauty.

However, under the circumstance of many a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > Enterprise shrinking line, the entity retail channel, digestion of high inventory environment, urban beauty prospectus disclosed the strategy of continuously expanding the entity channel, was questioned by the outside world.

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< p > senior people in the industry believe that it is not wise for urban beauty to open shop on such a large scale.

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< p > < strong > gross profit increased nearly 2 times in three years < /strong > < /p >

On the 26 th of this month, P will be officially listed in the HKEx. This also means that the listing desire of Dongguan lingerie brand urban beauty has finally come true.

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< p > City beauty reveals in the prospectus that about 39% of the proceeds will be used to expand the retail network; about 25.3% will be allocated for the establishment of three logistics centers in Dongguan, Tianjin and Chongqing; about 12.6% for the acquisition of selected businesses, brands or products; about 6.6% for the establishment of design and R & D centers; about 6.6% for the upgrading of information technology infrastructure, and the rest for general operating capital.

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< p > financial results show that in 2011 ~2013, the income of urban beauty reached 1 billion 656 million yuan, 2 billion 258 million yuan and 2 billion 916 million yuan respectively, among which gross profit was 400 million, 617 million and 1 billion 69 million yuan respectively, and increased nearly 2 times in 3 years.

In the first 4 months of 2014, the urban beauty realized a total income of 1 billion 189 million yuan, an increase of about 29% compared with 921 million yuan in the same period last year.

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< p > according to the total sales revenue, urban beauty accounted for about 2.8% of the market share of the clothing industry in 2013, almost three times that of the second largest brands in China.

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< p > at present, there are 4 brands of beautiful people under the different age groups.

City beauty says it intends to introduce high profit and high value-added brands or new products.

In addition, in the second half of 2014, urban beauty will introduce youth and children's personal clothing to further penetrate China's clothing market.

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< p > 2012 ~2013, urban beauty paid dividends to shareholders 150 million yuan and 200 million yuan respectively.

After listing, the urban beauty intends to adopt the general annual dividend policy and pay dividends in any fiscal year at no less than 30% of the total profit that can be allocated in that year.

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< p > < strong > store in the opposite direction is interrogate < /strong > /p >

During the SARS period of 2003, the number of urban beauty stores expanded from more than 10 to nearly 50. As of the end of 2013, there were 5790 retail outlets for urban beauty, of which 5069 were franchised stores and 721 were self operated stores.

Compared with ten years ago, the retail stores of urban beauty increased by more than 100 times.

After listing, urban beauty will come up with the 39% expansion retail network of fund-raising.

The management of urban beauty has repeatedly expressed in public that in the next few years, urban beauty will realize the "Wan Dian plan".

And such a fast opening shop is similar to that of the previous sports category < a target= "_blank" href= "http://www.91se91.com/" > dress < /a > brand.

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In 2008, the Beijing Olympic Games inject vitality into the development of sports brand and sprint market. Many sports Brand Company rapidly expand the number of stores in the P.

In 2012, a large number of sports brand enterprises in China concentrated on a large-scale "closing shop tide".

Among them, Lining closed the 1821 stores in the first year, PEAK closed 1323 stores, China closed 1101, Anta stores closed 590.

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< p > urban beauty prospectus disclosure, in order to further enhance the market share, urban beauty plans to continue to expand the geographical coverage of stores, and intensify penetration into the market.

In this regard, urban beauty plans to open franchised stores in areas with low market penetration and low penetration, set up self run stores in second tier cities and other strategic locations, and explore the possibility of setting up overseas strongholds in Hongkong and Taiwan.

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< p > by the end of 2018, urban beauty plans to open more than 2000 self owned stores.

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< p > although electronic business platform has been incorporated into channel management, the main sales channels of urban beauty are still concentrated in self owned stores and franchised stores, among which franchised stores are dominant.

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< p > prospectus shows that in 2011 ~2013, the urban beauty stores owned 3412, 4429 and 5069, accounting for 97.7%, 95.5% and 87.5% of the total number of stores, respectively. Among them, the income generated by the franchisees was 1 billion 592 million yuan, 2 billion 70 million yuan and 2 billion 240 million yuan respectively, accounting for 96.2%, 91.7% and 91.7% of total income.

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< p > "at present, earning membership fee is the main business mode of urban beauty."

A senior journalist who runs a female brand told the first financial daily that this business model is "past tense".

Like other clothing brands, in recent years, underwear has been greatly affected by the electricity supplier. In the future, the shop is no longer the only major sales channel for the underwear industry.

These people believe that it is not wise for urban beauty to open shop on such a large scale.

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"P > Qilu International believes that in 2012, the total sales growth of the same store" a href= "http://www.91se91.com/news/index_f.asp" > urban beauty < /a "increased by 7.3%. In 2013, the number had dropped to 4.9%, and sales, marketing and administrative expenses control was also unsatisfactory.

In 2013, the proportion of sales and marketing expenses of urban beauty sales increased from 13.1% in 2012 to 20.2%, while the proportion of administrative expenses in revenue increased from 4% in 2012 to 5.1%. Moreover, the price earnings ratio and market share of urban beauty were significantly higher than those of other similar listed companies, giving the "middle sex" rating.

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