Can The Strategy Of Urban Beauty Change After Adjustment

Affected by the new crown pneumonia epidemic, the offline retail of clothing industry was greatly impacted in the first half of the year. However, some enterprises achieved "breakthrough" by optimizing the supply chain and internal management.

On August 28, metropolitan beauty (China) Holding Co., Ltd., a clothing brand enterprise, announced that it had achieved revenue of 1.333 billion yuan in the first half of the year. Although this figure failed to escape the pattern of overall industry revenue decline, its gross profit margin reached 48.7%, 7.6 percentage points higher than the same period last year, significantly higher than the industry average level.

"Clothing retail is most afraid of high inventory and low turnover, because the depreciation rate of clothing inventory is very high, and the resulting retail loss often becomes a net loss." Zheng Yaonan, chairman of urban beauty (China) Holding Co., Ltd., said that in the face of external adverse factors, the city beauty, who was preparing for transformation, quickened its pace. By introducing foreign design experts, concentrating on scientific and technological research and development, and building online flow pool, the new product production cycle was significantly shortened, the efficiency was significantly improved, and the inventory risk was significantly reduced.

According to reports, around the implementation of the brand strategy, urban beauty is adhering to the "two legs" walking idea, accelerating transformation and reform.

On the one hand, from fast fashion to high cost performance. Over the years, urban beauty with a keen sense of business and fashion nerve, has launched "city beauty" and "otifen" brand new products. In view of the high cost-effective consumption concept inspired by fast-paced life, urban beauties continue to increase investment in science and technology, leading the trend of demand for high-quality and affordable clothing.

At the recent Autumn and winter new product conference of urban beauty, the city beauty launched a number of series of products focusing on solving the industry problems such as heavy, airtight and not warm clothes for autumn and winter. These "black technology" products, which are both comfortable, functional and practical, have created a "light and warm technology wind" in the industry.

Since this year, metropolitan beauty has also launched flexible production supply chain management, that is, collecting data through online and offline channels, comprehensively analyzing product orders, and formulating production plans in combination with its own production capacity and raw materials. The data shows that due to the effective implementation of reverse customization and flexible production, the inventory unit of urban beauty autumn and winter new products decreased by about 35%, the response speed of new products increased to 30 days, and the sold out rate exceeded 50%.

On the other hand, from offline sales to online and offline Omni channel marketing transformation.

Offline experience, online touch and omni channel coverage are irreversible trends in the retail industry. Since this year, urban beauty has strengthened cooperation with e-commerce platforms such as tmall, Jingdong and vipshop, and launched Tencent apps and live online. In the first half of the year, the revenue of the e-commerce business of urban beauty reached 382 million yuan, an increase of 18.1% over the same period of last year. The proportion of e-commerce business in the revenue reached 28.7%.

"This shows that the products of urban beauty have user stickiness, and under the condition of limited offline channels, online sales successfully meet the needs of consumers." Xiao Wei, senior director of supply chain business group of metropolitan beauty (China) Holding Co., Ltd.

At the same time, the city beauty also accelerated the pace of offline store upgrade. In May this year, more than 100 "seventh generation stores" of urban beauties opened in Beijing, Shanghai, Nanjing, Chongqing and other places. These stores provide a more comfortable and healthy shopping experience in store display and commodity selection. "Among them, Nanjing Xinjiekou x777 store's estimated annual sales will reach 10 million yuan." Xiao Wei said.

With the promotion of the brand positioning of "good quality and real price" and the transformation of Omni channel marketing, the cash flow of urban beauty has changed from negative to positive. In the first half of this year, the operating cash flow of urban beauty was 294 million yuan, while in 2019 this figure was - 262 million yuan. Industry analysts believe that with the smooth progress of the company's "second venture", the city beauty has realized light clothing, sales are expected to rise sharply in the second half of the year, and the operation has been greatly improved.

"What drives the development of urban beauties is not only the feeling of meeting the diversified needs of consumers, but also the continuous iterative technology and continuous enterprising concept. This is the only way for the whole industry to "break through" in the post epidemic era. " Zheng Yaonan said.