The Market Competition Of Underwear Industry Is Becoming More And More Serious. How Is The Urban Beauty Channel Cleaning Strategy Effective?

Recently, Urban beauty The announcement announced that Yu Zhenqiu, who has resigned as vice president of the company, chief financial officer, company secretary and authorized representative, has entered into force since December 2nd. In addition, Lu Kangcheng has been appointed to take over the above duties and come into effect on the same day.

Financial reports show that this year, due to factors such as shrinkage of consumer spending, urban beauty realized business income of 2 billion 211 million yuan in the first half of this year, an increase of 0.2% over the same period last year, and net profit of 174 million yuan, down 35.63% from the same period last year. In the same period, urban beauty implemented the strategy of clearing channels and closed the main business. brand There are 580 franchisees and 117 self operated stores. However, under the influence of shortage and store renewal, there are only 367 new outlets in the main brand. New brands also slowed down their stores in the same period of time, with a net increase of 54 in the first half. Ordifen has added 38 stores. Urban beauty expects to continue to optimize more than 200 main brand franchises in the second half of the year, but new stores are expected to increase.

Reporters noted that in terms of categories, only Warm clothing The benefit from the cold weather in the first quarter increased by 28% compared with the first quarter, while underwear, underwear and pajamas were down slightly year-on-year. From the industry point of view, close fitting Underwear Market competition and channel inventory increase are mainly affected by the rapid development of micro businesses. Insiders also said that the current Chinese clothing market has accounted for about 10% of the market share, while the micro distribution mode has also formed a backlog of channel inventory. Micro positioning for the needs of the public directly affects the company itself and its suppliers. In order to cope with the fierce competition, the urban beauties shut down inefficient shops to optimize channels, while postponing the opening of new stores. In the first half of the year, the company reduced 323 stores and 85 self operated stores. The total number of stores is 8371.

Everbright Securities researcher Gu Rougang here said that the biggest difference between urban beauty and other national underwear brands is that the terminals come mainly from street stores. The number of large shopping malls in China is relatively limited. Shopping mall consumption accounts for only 30-40% of the underwear consumption market. The channel expansion has a ceiling. Besides the shopping malls, there are commercial streets, transportation hubs, urban villages and community stores. In the view of Gu Liang Gang, the urban beauty will continue to expand the three or four line stores in the future. In a second tier city, the population is dense and mobile. Consumers have higher purchasing power and the market has not yet been saturated. It is initially predicted that the urban beauty will still maintain about 1000 stores a year in the next 3 years. The proportion of newly opened stores in the second and 345 tier cities in the past two years is 45% and 55%, and the self run stores will not expand significantly, and will maintain about 15% of the total number of stores. It is estimated that more than 1000 stores will be added every year, and 14300 stores will be realized by 2020.

Gu Lun Gang further pointed out that in 2016, the new urban beauty shop was expecting 300 free time, 80 Ordifen, 680 urban beauty, total number of stores increased 1060 to 9669. Compared with 1100 of the urban beauty schemes, the forecast is slightly conservative, mainly considering the potential negative impact of the macroeconomic downturn. In addition, in the three or four tier cities, Japan and South Korea style underwear will expand rapidly in the regional expansion, while the urban beauty has strong channel network coverage in the three or four line cities, which is enough to support the market share of free time in the three or four tier cities.

Insiders also said that China's large population base is a large consumer of underwear. Underwear not only meets the basic functions of consumers, but also becomes a fashion that people are chasing. According to Frost&Sullivan, China's market will reach 455 billion 300 million yuan by 2018, and its growth space will double in the future. Assuming that the population will remain at 1 billion 300 million in the next 4 years, the per capita underwear expenditure will reach US $51.3.

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