This Year, Urban Beauty Net Profit Is The First Decline Since Listing.

Some analysts pointed out that

Positioning the three or four line city, through a large number of stores to support the performance of the operating mode has exposed short boards, self built e-commerce model has not been able to resist the invasion of other online platforms, the restructuring of the operation model has become a key point for urban beauty to continue to be solved.

Through the rapid expansion of stores, there are many urban beauties.

The brand has emerged, but the rapid expansion after the listing has also created some embarrassing results to some extent.

At present, the urban beauty is facing the biggest performance crisis since its listing in the HKEx in 2014, and it is also the first time that the net profit of the company has declined sharply since 2011.

According to the latest performance report of the first half of 2016 released by urban beauty, the company achieved a revenue of 2 billion 211 million yuan during the period, a slight increase of 0.2% over the same period last year, while net profit was 174 million yuan, a sharp fall of 35.6% compared with the same period last year, and the gross profit margin also declined from 15.8% in the same period last year to 10.1%.

In contrast, in the first half of 2015, the net profit of urban beauty was 270 million yuan. In the 2011-2015 years, the annual net profit of urban beauty increased positively.

For the sharp decline in performance, urban beauty said that on the one hand, the slowdown in China's economy caused the retail industry to be negatively affected, resulting in a lack of consumer desire for shopping. The urban beauty also said that the demand for brassiere in the first half of this year was sharp, and that it could quickly respond to and seize the opportunity at the supply and marketing level.

The impact, resulting in a serious lack of such products, greatly affected sales.

A person engaged in the underwear industry said that the urban beauty attributed the decline in performance to the micro business, which means that the new micro channel occupies more market share, while the urban beauty itself is hard to get better development in this field.

In the first half of 2016, the underwear market had a great demand for bra, but there was a large increase in the number of products sold through the micro channel, and the number of suppliers who had no scar and no steel ring bra technology was relatively small, leading to the serious lack of such products by urban beauty, which greatly affected the performance.

At present, the overcapacity of garment processing is a common phenomenon. The processing problem is easy to solve, but it is difficult to guarantee its quality.

In fact, urban beauty has been doing business in recent years. The processing of products mainly relies on the OEM of Shantou and other places.

A person familiar with underwear processing told the Beijing Commercial Daily that many underwear products in the low-end market were prone to problems because of the low premium.

It is a common problem for underwear products that lace opening, loose ends, deformation of cotton products, different product specifications, and fabric binding.

Urban beauty products also have such problems, it is the two time in six months on the quality blacklist.

On the related issues, Beijing Business Daily reporter contacted urban beauty, as of press time, it did not reply to the interview letter.

Cheng Weixiong, a clothing expert, told reporters that the declining performance of urban beauty and a large number of shops were the inevitable phenomenon of rapid horse racing. The opening of shops in order to be listed is not compatible with the growth of urban beauty. The development of enterprises has a fixed regulation. Rapid growth is bound to cause the development of enterprises to not keep pace with the development of shops.