Name Chuang Youpin is listed in the second time, is "Ten Yuan Store" still a good business?

On July 13, the "Ten Yuan Store" brand Mingyin Youpin officially landed in Hong Kong stocks, becoming another two major listed companies after Weilai and Shells this year. The so -called dual listing refers to listing at the United States and Hong Kong stocks at the same time, and has the same listing status in the two places. For example, the delisting of one of the listings will not affect the listing status of another listing place.

According to media statistics, there are more than 250 Chinese stocks listed in the United States. At present, there are about 30 Chinese stocks that have successfully landed in Hong Kong stocks.

At the end of June this year, Mingchuang Youpin began a prospectus. Judging from time, this time it is smooth. Ye Guofu, chairman and CEO of the board of directors of Mingchuang Youpin (Group), also said that in such a difficult capital market environment, Mingchuang Youpin quickly landed on the Hong Kong Stock Exchange, proved that Name Chuangyou's strong anti -risk ability And competitiveness. However, at the same time, it is weak to grow and the brand of incubation.

Photo source: Mingchuang Youpin Official Website

One side continues to lose money, and it expands crazy

As early as October 2020, Mingchuang Youpin had landed on the New York Stock Exchange. At that time, the issue price per share was $ 20, issued 30.4 million shares, with a total market value of 6.992 billion US dollars. In 2021, the total market value of Mingchuang Youpin exceeded the $ 10 billion mark. On July 6 this year announced by the Hong Kong stock market, Mingchuang Youpin US stocks closed at $ 7.78, with a total market value of 2.46 billion U.S. dollars, a decrease of nearly 80 % compared with the highest value.

Of course, there are factors that have recently performed unsure in the overall performance of U.S. stocks, but it also implies the bottleneck of the development of famous and innocent its own business. The prospectus shows that in fiscal 2019 to 2021 (calculated by the natural year as of June 30 of that year), the revenue of Mingchuang Youpin was 9.395 billion yuan, 8.979 billion yuan, and 9.072 billion yuan, respectively. 100 million yuan, 260 million yuan, and 1.43 billion yuan. In terms of Mingchuangyou, the expansion of losses is mainly caused by the epidemic. The prospectus shows that the epidemic has temporarily closed the overseas stores with 4%of Mingyin Youpin and interrupted the logistics and transportation operations of the Chinese market. In fact, revenue loss has appeared before the outbreak, and it is also a prospectus. In fiscal year 2019 to 2020, the revenue of Famous Chuangyou Stores decreased from 2.7 million yuan to 2.2 million yuan, a decrease of 19.8%. From 2020 to 2021, the revenue of single stores continued to decrease to 1.9 million yuan, a decrease of 11.3%.

From the perspective of the industry, the formation of this phenomenon has nothing to do with crazy expansion. Store expansion is regarded as the "key driver factor" of income growth. The founder Ye Guofu clearly stated as early as 2018 that by 2022, the goal of "100 countries" will be achieved by 2022. According to media reports, some people in the industry have revealed that almost 90 stores will be opened almost every quarter. Perhaps only by relying on more frequent financing can we maintain such a expansion rhythm under the operating situation of all year round. Based on this, even during the prevention and control of the epidemic, Mingchuang Youpin did not slow down the pace of newly opened stores. As of June 2022, Mingchuang Youpin had 5113 stores worldwide, of which 1916 overseas stores had been occupied. As far as the prospectus can be known, 25%of the funds raised by the prospectus will be used for the expansion and upgrade of store networks.

However, on the financial data, the expansion of the store did not bring income growth. According to the prospectus data, from 2019 to 2021, its operating income is 9.944 billion yuan, 9.268 billion yuan, and 9.092 billion yuan. By the third quarter report of the fiscal year in 2022, its operating income was 7.768 billion yuan, which was 85%of the 1021 fiscal year.

New brand contribution limited

Although it is repeatedly mistaken for Japanese brands, Mingchuang Youpin is actually a domestic brand with Zhenger. In 2013, the founder Ye Guofu and his family were inspired by his family when traveling in Japan. At that time, he found that the living department stores sold by the local home furnishing stores were not only beautiful and affordable, but also mostly "Made in China." Therefore, after returning to China, he founded the "Life Good Property Collection Store" in Guangzhou with the channel resources that he had accumulated in the past.

For a long time since then, "extreme cost performance" has become a product label of famous and innocent products, and has attracted a lot of fans. After 95, the boy Xiaoliang claimed to be a heavy user of the famous creation. At that time, there were no stores in the city. He learned about the design of the famous creation in the process of going out. "After that, he searched the nearby famous shop when he went out to become his habit. Even if he was transferred at the airport, he would take time to stroll around. But now, Xiaoliang is no longer willing to buy products of famous and innocent products. After economic independence, he no longer pursues cost -effectiveness, but turns to better quality products. "As for things that are not high in use, there are often more e -commerce platforms often there are more more than more e -commerce platforms The alternative, "he said.

Right now, the daily retail market is not only Nomo, hibiscus life, etc., but also the e -commerce platforms of the sedimentation market and price cards in terms of price. The pressure can be imagined. On the one hand, Mingchuang Youpin strives to retain young people; on the other hand, at the consumer side, Mingchuang Youpin has always suffered from the label of "cottage" on his body. Therefore, in terms of brand upgrade, Mingchuang Fang has never given up trying.

It is worth mentioning that in February 2021, the founder Ye Guofu proposed a new business strategy "X-Strategy", saying that the company would transform into a new retail platform to hatch more sub-brands. In this year, Haydon, a high -end beauty retail store founded by Mingchuang Youpin Harmay, opened the store. However, in April, Haydon suspended the business temporarily due to the influence of many stores. At the end of 2020, Mingchuang Youpin launched the first independent new brand TOPTOY to position the Asian tide game collection store. However, in the short term, these new brands are far from growing into the second growth curve of the famous creation. The financial report shows that as of December 2021, the independent new brand TOPTOY has a total of 89 brand stores, but in the first quarter of this year, TOPTOY is in this year. The proportion of revenue in the domestic market is 6.1%, and its contribution to the company's income is weak. Is "Ten Yuan Store" still a good business?

According to the report of Fhstrisana, Mingchuang Youpin is "the world's largest home -life home retailer." In 2021, the total of about $ 2.8 billion in GMV (total commodity transaction), accounting for 6.7%of such market share in the world. Data show that today's famous and innocent products have successfully entered 100 countries and regions around the world, and have more than 5,000 stores worldwide.

It should not be ignored that the retail industry is most afraid of stocking backlogs, so stores often choose to open near the business district with a large passenger flow, plus the name of the "retail partner" franchise model, which will inevitably form a store "inside the store" roll". Specifically, retail partners will be responsible for the location of the site and bear the operating expenses of the store. The famous and innocent products will be responsible for providing store management and operation consulting, and then it will inevitably form a situation of competing with each other. In an example of an industry professional interview with the media, Like Lambeel, who has already applied for bankruptcy and liquidation,, is like ZARA, who is undergoing the tide of closing stores, and most of the companies operating offline and selling are mostly in the dilemma of "excessive" store opening.

The larger impact comes from online. In recent years, many Internet companies have run the "platform+factory" model, which will press the price to extremely low space. If offline brands do not have product advantages, they are unable to have similar Internet brands with similar Internet brands at all. Fight price war. In fact, Mingchuang Youpin itself also actively embrace the Internet and adopts an online and offline integration omni -channel layout model. As we all know, the "traffic is king" in the Internet world.

At the beginning of 2022, Lai Yang, a member of the expert committee of the China Business Federation, talked about the business model of Mingchuang Youpin, "The operating costs of physical stores are relatively high. There are also fewer and fewer stores in stores, which leads to the selection of new stores. It is not particularly ideal, and it is difficult to have good benefits. "Another industry person believes that during the prevention and control of the epidemic, famous and innocent thinking continues to expand with retrograde thinking. In the store, even if there are factors such as low rent in shopping malls, the economic income has never been able to reach the ideal level. Famous and Chuang Youpin still has to bear crises such as losses and decline in stock prices.

It is true that it is not easy to remove the label of "pseudo -Japanese" and "cottage", and it is difficult for new brands to be new revenue growth points for the time being. Behind it is still the dilemma of limited brand influence and insufficient original product power. From this point of view, the second listing of this time in Hong Kong is more like another starting point for Mingchuang Youpin.

New Yellow River Reporter: Zhang Bo

Edit: Liu Yuhong

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