Chinese Underwear Is The First City Beauty To Go Wrong.

The urban beauty who is the first Chinese underwear has suffered from the crisis of market share reduction in recent years, resulting in a slight increase in profit. In contrast, the whole underwear market is growing continuously.

In the first half of this year, 238 urban beauty shops were closed.

To 8371, the gross profit margin also declined from 15.8% in the same period last year to 10.1%.

Its only bright spot comes from the electricity supplier channel. In the first half of the year, its revenue rose by 280% to 165 million yuan, accounting for 7.5% and about 8000000 of net profit.

Urban beauty explains that one of the reasons is that the slowdown in China's economy has negatively affected the retail industry as a whole, and consumers' desire for shopping is not strong.

But data from Mintel Group, a market research firm, showed that the size of China's underwear market doubled to $18 billion in five years.

Euromonitor predicts that the retail value of China's women's underwear market is expected to reach US $25 billion next year, two times that of the US market, and this figure will increase to 33 billion US dollars by 2020.

In addition to domestic consumption fatigue, urban beauty explains that the rapid development of micro businesses has hit the mass market competitors.

In the mass market with the biggest market capacity and the fastest growth in the city beauty, these clothes selling products with similar functions and designs have a great impact on them.

In the first half of this year, the demand for non scars and non ring bras increased greatly, and the micro merchants could respond quickly and seize the opportunity at the level of supply and marketing. In contrast, the city beauty, because of the lack of technical suppliers with no scars, and the supply of the group provider ("OEMs"), was also affected by the micro business, resulting in a serious lack of such products, which greatly affected sales, especially to franchisees.

According to the market research results of urban beauty, at present

It has occupied more than 10% of the whole Chinese clothing market.

Contrary to the urban beauty who regards micro business as the enemy of the moment, its competitors do not think that micro business has impacted on itself.

Shenzhen based fast fashion underwear brand "100%" commodity director Zhang Jingfang said: "micro business objectively helps the industry quickly popularize products and concepts, such as" no trace no steel ring ", but the advantage of the physical store is to try it on, consumers will have a cognition of products and will still come to 100% purchase, instead, we will benefit from the development of micro businesses.

In addition to the judgement of hot selling styles, one of the key elements of market judgement lies in the positioning of brand products.

Urban beauty needs to decide whether the main target consumer group in the future is the rising middle class or the price sensitive mass class.

The share of low-end underwear products will be more and more crowded, and the demand for high-end underwear will be higher and higher.

The city beauty is the representative of the middle and low end underwear brand.

In order to cater for the upgrading of consumption, the urban beauty who has been focused on the mass market began to layout the high-end underwear market.

In March last year, the city beauty bought Shanghai's high-end underwear enterprise Ordifen at a price of 92 million yuan.

According to the financial report, after only four months of acquisition, Ordifen, which made a deficit in successive years, realized a turnaround. But in the first half of this year, it suffered another loss.

This year, urban beauty will upgrade brands, products and stores. For example, the fabric purchase of products will turn from domestic to international suppliers such as lycra and Itochu, and the store will take a simple design style and unified furniture design.

Urban beauty says that about 100 stores have completed their image upgrading in the first half of this year.

However, in the high-end layout, urban beauty does not intend to give up its main position in the mass market.

In June this year, the chief information officer of the city beauty, Sha Shuang, said that the deep ploughing of the existing mass market should still be the core of the urban beauty. "Ordifen is just a supplement to a channel, so that consumers can feel that we can also make high-end products.

The mass market is so big that we haven't done it yet. What's the rush? "

He said that city beauty could never give up the mass market.

In 2013, consulting firm Sullivan (Frost&Sullivan)

The report shows that the market share of urban beauty has reached 4.9%, which is more than second of the underwear market at that time (4.2%) of the total of second to fifth (ANN Li Fang, Adam, man, and Ordifen).

But at present, the market share of the company has dropped to 3.3%.