Urban Beauty Underwear Will Not Increase Profits After Listing.

The urban beauty who once relied on large scale shops and self built e-commerce mode to achieve rapid development has declined for the first time this year, but has closed over 200 stores.

Some analysts pointed out that urban beauty positioning three or four line cities, through a large number of stores to support the performance of the business model has exposed a short board, self built electricity supplier mode also failed to resist the invasion of other online platforms, restructuring business model to become

The key points to be solved are to continue to move forward.

Through the rapid expansion of stores, urban beauty has come to the fore in many underwear brands, but the rapid expansion after 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, the urban beauty said, on the one hand, the slowdown in China's economic development caused the retail industry to be negatively affected, resulting in a lack of consumer shopping desire. The urban beauty also said that the demand for brassiere in the first half of this year has been increased rapidly. The micro businesses can respond quickly and seize this opportunity at the supply and marketing level. But the urban beauty is also affected by the lack of products suppliers with the production of seamless steel bra without bra, and the supply of products from the Shang and Shang Dynasties is also affected by micro businesses, resulting in a serious lack of such products, which 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 increased the demand for bra with no trace and no steel ring.

Sales of such products have increased substantially, while the number of suppliers with bra less and no steel bra technology is relatively small, leading to the serious lack of such products by urban beauty, which has greatly affected their 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 reporters that many underwear products in the low-end market, because the premium is low, the quality of products is easy to have problems.

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.

In the short term, the rapid expansion of large quantities of shops is a challenge for garment enterprises, resulting in rapid expansion.

Dyspepsia, the contradiction of the whole system also appeared.

Urban beauty has problems both in terms of development mode, terminal stores and products, and needs internal control.

In the future, urban beauty needs continuous development, and it is necessary to re-examine the development mode of enterprises.