In The First Half, Net Profit Fell By More Than 80%. What Did Urban Beauty Do In The First Half Of The Year?

Recently, urban beauty released a profit warning in the first half of 2019. It is estimated that net profit will exceed 80% over the first half of the year, and gross profit margin will also decline due to the rising cost of raw materials. Six months ago, the performance of urban beauty was relatively strong. In terms of its 2018 annual performance, the gross profit margin has declined, and both revenue and net profit have increased.

In order to improve the future operation results, urban beauty announced in the Ying police announcements that new chief executives will be hired, new brand spokesmen will be launched, product research and development, expansion of sales channels and potential mergers and acquisitions will be increased.

The performance of city beauty can't help wondering. At the same time, we may look at what the urban beauty has done in the past six months.

In June, the city beauty announced that it had entered into sixteen joint venture cooperation agreements with its respective controlling shareholders of the sixteen existing suppliers of the group, and set up a joint venture to carry out business cooperation activities. It is understood that these suppliers are the long-term suppliers of the group, have more advanced production equipment and sufficient capacity, have more proprietary technology in product design and new material development, and have the ability to control and control the whole process of product design, manufacturing and quality control.

If a joint venture is established to consolidate the rapid reaction capability of the group and ensure the group's control of quality and adequate production capacity, then the replacement of the spokesperson for the city beauty shows the brand's ambition for the young market.

In June 21st, the city beauty announced that it had appointed the Chinese young idol Guan Xiaotong as the spokesperson for the brand underwear and home furnishing clothes in June 1st. He also said that he would introduce more new and high quality products to the market in the second half of the year to meet the needs of consumers.

In the first half of the year, the urban beauty made a series of changes to the development of the supplier, the development of the products and the market.

The establishment of a joint venture is conducive to the integration of new products and new materials development capabilities of suppliers, shortening the development and production cycle of new materials and new products, and strengthening the urban beauty group's ability to control and control high-quality suppliers and improve the self-sufficiency rate of quality products. To optimize the supply chain, enterprises can play a greater role in product competitiveness and advantages, greatly enhance the brand's ability to serve consumers, and open up the source of supply chain to the terminal stores to respond quickly.

But the impact on young market and promoting the younger generation of brand products has always been upholding by urban beauty. Last year, urban beauty sought to expand product categories and attract young consumers. Not only did they actively layout women's sports underwear and men's personal clothing, but also signed the former CEO chief strategist and French senior designer to make product design for urban beauty. Under the leadership of the new chief strategy officer, the new beauty shop of the city has opened up in the shopping center and has been transformed into a fashion oriented fashion.

At present, consumers prefer shopping centers. This is also a major factor affecting the choice of terminal stores. In the past, the beauty of the city has won a large share of China's underwear market by a large number of street stores, with the positioning of low-end and small profits but quick turnover, but such marketing is going downhill. Entering the shopping center can make urban beauty closer to the needs of young people.

In the first half of 2019, the problem of urban beauty is showing in all directions, and younger is still the direction of its transformation. In the second half of the year, how can urban beauty recover the declining performance, and how will it continue to target young people and boost the company's performance?