Brand Focus: Revenue Of Qianbaidu Will Decrease By 28.7% In 2020

On the evening of March 29, Qianbaidu announced its performance in 2020, with a total income of 1539.4 million yuan, a year-on-year decrease of 28.7%; gross profit from continuing operation business decreased by 25.8% to 860.7 million yuan, and gross profit rate decreased by 4.0 percentage points to 55.9%; the profit from continuing operation was 5.6 million yuan, while the loss in the same period of 2019 was 205.3 million yuan.

Qianbaidu's business is mainly divided into three parts, including the retail and wholesale revenue of brand fashion shoes and shoes was 1.379 billion yuan, down 15.15% year-on-year; shoe contract production was 112 million yuan, a year-on-year decrease of 46.9%; toy retail revenue was 47.772 million yuan, with a sharp drop of 51.6%. It is worth mentioning that Qianbaidu sold Hamleys Global Holdings Limited and its subsidiaries in July 2019. At present, it only operates toy retail business through three Hamleys stores in China.

Online and offline "ice and fire double sky"

Online revenue soared 61.4%, and offline stores fell by 217

Due to the outbreak of covid-19, Qianbaidu's revenue from shoe retail and wholesale business decreased by 15.1% year-on-year in 2020. However, the group used online sales channels in vipshop, tmall and wechat to offset the impact of closing physical stores. Due to the active implementation of online promotion and the shift of national retail activities from offline to online during the epidemic period, Qianbaidu's online channel revenue increased by 61.4% last year.

In terms of offline channels, Qianbaidu continued to strengthen the cooperative relationship with department stores, shopping centers and outlets to consolidate the existing distribution outlets. Meanwhile, it greatly optimized its direct stores and closed loss making stores. In the whole year, it reduced 169 self-employed shoe retail stores and 48 third-party shoe retail stores. On December 31, 2020, Qianbaidu has been in 31 provinces, shopping centers and outlets in China There are 1045 self operated shoe retail stores and 197 third-party shoe retail stores in the city and autonomous region.

Optimize organizational structure

The 10 sales regions were integrated into 6, and the production activities were concentrated in Xuzhou

In 2020, Qianbaidu optimized its organizational structure and integrated ten sales regions into six at the regional level. After eliminating the redundant management level, the coordination between employees was improved and communication was accelerated.

On June 18, 2020, Qianbaidu announced that it would sell all the issued share capital of Huiying to Huaxin Venture Capital Co., Ltd. Huiying, the holding company of Nanjing Meilihua, mainly engaged in shoe production and retail in Nanjing. After sales and sales, Qianbaidu focuses its production activities in Xuzhou (instead of Nanjing and Xuzhou in the past), so as to save internal governance, save the cost of storing too much inventory, avoid the possible cost of confirming obsolete inventory in the future, and also make the group benefit from the lower operating cost of Xuzhou.

In addition, Nanjing Meili Hua will gradually improve the cash position of Qianbaidu by paying off trade debts according to the credit and debt framework agreement, while the transfer of several footwear trademarks to Qianbaidu under the trademark transfer agreement will allow it to continue to operate its own brand. Therefore, the sale will not have any significant adverse effect on Qianbaidu's existing shoe business.

expectation

Will close inefficient stores and continue to expand online channels

Qianbaidu said that in the future, it will continue to focus on strengthening its core business and optimizing its online and offline experience to further enhance its competitiveness. After careful consideration, the company will gradually close inefficient stores in the coming year.

On the one hand, as the epidemic subsides, Qianbaidu expects that offline sales will gradually recover, and the sales performance of each store will rise, and the group will also focus on improving its offline operation efficiency in the coming year; on the other hand, Qianbaidu intends to further cooperate with vipshop and other online platforms and other parties to continue to expand its online sales channels. Qianbaidu will make full use of the online and offline synergy, give full play to the potential of online business, and integrate offline customers into online purchasing power, with the goal of accelerating growth and increasing sales in 2021.

In the past few years, Qianbaidu has made every effort to implement the strategy of rebuilding its focus, and other businesses have gradually been stripped off. In order to promote the rapid development of the company's main business, Qianbaidu will further implement the reform of its operating system and corporate structure. With more resources flowing into the main business, overall structure and system upgrading, as well as the implementation of innovative and effective publicity plan, it is expected that the sales volume of Qianbaidu brand will break through.