The market value has shrunk by more than 90 %. What did this brand do wrong?

Author:Securities daily Time:2022.07.09

Our reporter Li Haoyue on July 8th, the stock price of urban beauty hit a record low. The stock price was as low as HK $ 0.3/share on the day. As of the close of the day, the stock price closed at HK $ 0.305/share, with a market value of HK $ 686 million, and the market value of HK $ 20.5 billion from the peak of the city, over 90 %. In fact, since July, urban beauty has continued to move. On the one hand, the company has established Dongguan Liren Selection E -commerce Co., Ltd. The slogan opposed the "size -free" underwear trend set off by the emerging underwear brand. This is also interpreted by the industry as the transformation of business focus. What is the intention of urban beauty to change this time? The continuous loss of three years of inventory cycle continued to lengthen the reporter to sort out the financial report from the city's 2015 to 2021 that after the company's 2015, the profit began to decline. In 2018, he "returned to spring" in 2018. After that, his performance lost three years in a row and fell into a trough again. The financial report shows that from 2015 to 2018, the company's revenue was 5 billion yuan, 4.51 billion yuan, 4.54 billion yuan and 5.1 billion yuan, respectively. Business profits are 690 million yuan, 310 million yuan, 420 million yuan and 480 million yuan, respectively. From 2019 to 2021, the company's revenue was 4.1 billion yuan, 3.06 billion yuan, and 3.36 billion yuan, respectively. During the year, they lost 1.3 billion yuan, 120 million yuan and 500 million yuan, respectively. Cheng Weixiong, an independent analyst of the shoe and clothing industry, told a reporter from the Securities Daily that the fundamental reason why urban beauty even lost three years was the problem brought about by its rapid expansion. Looking back at the past, in 2015, there is no doubt that it is the pinnacle of urban beauty careers. It is not only the best year after the company's listing, but the number of stores also reached the highest value. In the early days of the company, the number of stores nationwide reached 8,058 in 2015, of which 6,937 franchise stores. In this case, the founder Zheng Yaonan made a decision to "open 10,000 stores". As a result, the store had to start to shrink before the store had expanded to 10,000. In 2016, there were 407 companies closed, and the profit decreased by 380 million yuan than the previous year. As of now, the national stores of urban beauty have been reduced to about 5,000. A financial analyst introduced to the "Securities Daily" reporter that the changes in the financial report data of the city in recent years point to a problem, and the company's underwear is not so easy to sell. The financial report shows that the average inventory period of urban beauty in 2015 was only 92 days, rising to 142 days in 2016, and 165 days in 2021. The above analysts believe that most of the product styles expressed in the early underwear brands are labeled with "sexy". In recent years, domestic women's consumption awareness and aesthetic standards have changed greatly. "Sexy" has long been out of date. The current young consumers are pursuing diversification, not a single aesthetic. The post -90s consumption habits changed the traditional brand to drop the team. Reporters learned that in 2012, the urban beauty signed Lin Zhiling, and the underwear focused on sexy style. Sexy style has made urban beauty's underwear sell well all the way, and has driven the company to successfully list in 2014. In 2015, urban beauties began to host underwear fashion shows in China, so they were also titled "Chinese version of Victoria's Secret". However, the consumer demand in the market is also changing. Compared with the sexy -shaped steel ring underwear, more comfortable steel -free underwear is becoming popular. Industry data show that before 2016, no steel ring underwear accounted for only 10%of the women's underwear market. Tmall data in 2018 shows that steel -free underwear has accounted for 60%of the share, of which more than 50%of the post -90s buyers. During this period, a large number of main topics were comfortable and shouted the emerging underwear brand of "please yourself" slogan, and the underwear market even ushered in the era of "no size". Public data shows that the top of the underwear brand sales list during the "618" promotion period in 2022 was occupied by Ubras. Ubras was established in 2016 when the profit of the urban beauty decreased sharply. So far, 3 rounds of financing has been completed. Sequoia China, today's capital, and IDG have invested in it. The reporter found in its flagship store that no size underwear is the company with the highest sales of the company. In addition, 3 rounds of financing has been completed in the lingerie brand of the underwear brand, and 8 rounds of financing has been completed internally and outside. The reporter found that whether it is UBRAS, internal and inside and outside the banana, most of these brands of products are mainly low -saturated in color, and the product pursues minimalist. The reporter found that the city beauty also catered to the market to launch a sizeless underwear last year. When the 2021 financial report introduced the "product upgrade", it was clearly mentioned that the explosive products launched in 2021 include unshanding underwear and sizes. Under the wave of pursuit of comfort, not only the urban beauty was impacted, but the "underwear top flow" Victoria also stopped holding underwear catwalks in 2019. Its financial report shows that Victoria's US stores exceeded 1,000 from the peak period to more than 800 in 2021. Its parent company LBRANDS Group once expressed the idea of selling Victoria's Secret Brands in 2020. Lai Yang, a member of the Expert Committee of the China Commercial Federation, told a reporter from the Securities Daily that in the past, traditional brands focused on opening a large number of physical stores offline to make the operating costs too high. In the era of cloud consumption, consumption breaks the barrier of time, space, and region, and can be purchased online with the brand or designer. The emerging brand did not need physical stores at the beginning, which saved a lot of labor, rent, especially the cost of shipment.

And traditional enterprises now have thousands of stores, all of which have become the burden of enterprises. Even if there is a good sales, it is still difficult to make a profit. From the perspective of marketing, Zhang Yi, CEO and chief analyst of Ai Media, told a reporter from the Securities Daily that traditional brands ignore the extension value of the product. "Can't adapt to the changes in the times, not only the problems of the underwear industry. Many industries have similar situations. We believe that a product has inherent value and extension value. Previous products only focused on internal value, such as quality, price, and use. Wait. The value of the extension is the so -called social attribute now. When the user buys, it is not just a lingerie or not, it is good to wear a cup of tea, and a car is not safe. They need this product to bring new labels and attitudes to themselves . At present, the emerging brand audience is generally young people, and product pricing is still popular even higher than that of traditional brands. It is because of the extension value of the product that can resonate young people. , The company is further fitting market demand and completing the transformation. Urban Beauty was reported to be established on July 5th to establish Dongguan Liren Selection E -commerce Co., Ltd.. The business scope includes Internet sales, clothing and clothing retail, marketing planning, etc. On July 3, Metropolitan beauty released the "White Paper of Chinese Women's underwear" and announced the use of hundreds of spokespersons. It is a popular brand in my heart, no longer the sexy man, nor the "national daughter". The urban beauty should be hundreds of, thousands of, and all. All women's solutions. Just as brands that have no size on a size, now they have gradually launched S code, M codes, and L code underwear. Underwear should be a variety of standards and multiple dimensions. In this regard, Cheng Weixiong said that the old underwear company In terms of marketing concepts, storytelling, online channel layout, and catering new consumption scenarios, it is not as good as emerging brands. This requires older companies to work hard in the transformation of brand youth and new channels. " Influence and brand shaping are much higher than new brands, which is also the advantage of old -fashioned companies. Emerging brands have obtained traffic with a short marketing, and if they want to develop long -term development, they still have to go to offline channels to confront the old brand. "The reporter learned that the online brands growing up online and outside the banana, interior, inside and outside, etc. have opened stores offline, and there is an increasing trend. For example, the number of stores in the one -year internal and external internal and external. About 30. This means that the battlefield of the emerging brand and the traditional brand is constantly linked, and who can finally stand at the top of the industry in the future, maybe it will take time inspection. Caishan Dan's final trial | Dong Shaopeng