As a leader in China's underwear market, Cosmo Lady has been committed to providing professional, comfortable and fashionable underwear products for female consumers. After several transformations and adjustments, Cosmo Beauty has regained its positioning and advantages, achieved a turnaround in 2022, and started a new round of rapid expansion in 2023.
At the just-concluded 2023 autumn and winter order meeting, Metro Lady showed her achievements and confidence, and also conveyed her original intention and vision to franchisees and partners. In the future, how will Cosmo Lady stand out in the highly competitive underwear market and achieve sustained growth?
Grow against the trend and turn losses into profits
2022 is a year full of challenges and opportunities. Affected by the epidemic, the underwear industry as a whole has encountered downward pressure, with difficulties in operating offline stores and intensifying competition in online channels. Facing such an environment, Cosmo Beauty has adopted a series of effective countermeasures, maintained a steady operating level, and achieved remarkable results.
According to the 2022 financial report released by Cosmo Lady, the annual revenue in 2022 will be 3.01 billion yuan, and the net profit attributable to the parent company will be 33.024 million yuan. Gross margin rose 4.3 percentage points to 46.4%. Among them, the retail business achieved sales of 1.27 billion yuan, and sales to franchisees achieved sales of 940 million yuan.
By continuously reducing costs and increasing efficiency, effective cost control of administrative expenses, etc., even in 2022, when offline stores are hit hard, Cosmo Lady still successfully turned losses into profits and achieved growth against the trend.
In addition to financial data, Metropolis Lady also demonstrated strong expansion capabilities. In December 2022, when the control measures had just been adjusted, Cosmo Beauty released the high-profile "Hundred Cities, Thousands of Stores" plan, planning to open thousands of stores in more areas of the country in 2023. In March 2023, the Metro Beauty Spring Merchants Association successfully signed 771 stores, which almost reached the data for the whole year of 2022. In March 2023 alone, Cosmo Beauty has opened 100+ stores across the country, with hundreds of stores opening together, and the spring is warm and the flowers are blooming.
Behind these achievements is the profound accumulation and innovation ability of Cosmo Lady in the field of professional underwear, and it is also the embodiment of the three original intentions that Cosmo Beauty has always adhered to. Next, we will analyze in detail how Cosmo Lady fulfilled the three original intentions from three aspects, and won the recognition and trust of the market and consumers for herself.
The three original intentions of urban beauty
The success of Cosmo Lady is not only measured by financial data and the number of stores, but more importantly, it is supported by the core values and concepts of the brand. Cosmo Beauty has always adhered to the three original intentions, which is what makes Cosmo Beauty different.
The first original intention is to insist on making "good but not expensive" products. Cosmo Beauty believes that underwear is the most personal clothing for women. It should not only be beautiful, but also comfortable, healthy and safe. Therefore, Cosmo Lady strictly controls every link from raw material selection, design and development, production technology, quality inspection, etc., to ensure that each product can meet the standards of professional underwear. At the same time, Cosmo Lady also pays attention to the fashion and diversity of products, and has launched a number of series and styles according to different age groups, body types, scene needs, etc., to meet the individual needs of consumers. What's even more commendable is that while ensuring the quality and style of the products, Cosmo Lady can also make the price close to the people, so that consumers can enjoy professional underwear services at a reasonable price.
The second original intention is to make customers profitable. The customers here refer to thousands of franchisees and partners of Cosmo Beauty distributed all over the country. Cosmo Lady attaches great importance to the cooperative relationship with customers. It not only provides high-quality products and services, but also provides professional training and guidance to help customers improve their operating capabilities and efficiency. Cosmo Lady also reduces customers' operating risks and costs and increases customers' income and profits by establishing a fair and transparent distribution system, optimizing inventory management, and increasing the sell-out rate. Cosmo Beauty believes that only by making customers profitable can we achieve a win-win situation.
The third original intention is to let the employees sincerely serve the customers and consumers of Cosmo Lady. Cosmo Lady believes that employees are the most important assets and communicators of the brand. Only when employees have confidence and enthusiasm for the brand can they pass on this confidence and enthusiasm to customers and consumers. Therefore, Cosmo Lady continues to invest resources and energy, and has done a lot of work in improving employee benefits, improving employee benefits, and motivating employees to grow. At the same time, Cosmo Beauty has also cultivated a professional, dedicated, cordial and friendly service team to provide customers and consumers with high-quality consultation, try-on and after-sales services online and offline.
It is precisely because of these three original intentions that Cosmo Beauty can form its own unique competitiveness in the underwear market and win the trust and support of customers and consumers. This is also the fundamental driving force for the sustainable growth of urban beauty.
Facing the future, Cosmo Beauty has also put forward its grand goal-thousand stores in hundreds of cities.
Seize the huge opportunity in the underwear market and achieve the goal of 1,000 stores in 100 cities
Statistics show that the size of the underwear market is about 200 billion. But in this market, even Cosmo Beauty, which is already in the leading position in sales, only occupies a share of 2.1%. This shows that there is still huge room and potential for urban beauty.
On the one hand, due to the impact of the three-year epidemic, public consumption has gradually become more cautious. On the one hand, people upgrade their consumption and pursue high-quality products. On the other hand, they hope that the price of this product is fair and the service is reliable. This provides a rare opportunity for a local brand like Cosmo Beauty who sticks to "good but not expensive".
On the other hand, with the improvement of women's consumption power and awareness, the demand for underwear market is also growing and subdivided. With its deep accumulation and innovative ability in the field of professional underwear, Cosmo Lady can meet the diversified needs of different age groups, body types, scene needs, etc., and form its own unique product advantages and differentiated competition.
In order to seize the huge opportunity in the underwear market, Cosmo Beauty has set the goal of "thousand stores in a hundred cities", and plans to open a thousand stores in more areas of the country in 2023. This is a very ambitious and confident goal, but also a very challenging and risky goal. How does Urban Beauty achieve this goal?
First of all, Cosmo Beauty should strengthen its own brand building and communication, and enhance brand awareness and reputation. Cosmo Lady needs to convey the image and value proposition of its professional underwear brand to consumers through various channels and methods, so that more consumers can know, trust and love Cosmo Beauty.
Secondly, Cosmo Beauty must optimize its product structure and innovation capabilities to enhance product competitiveness and attractiveness. According to market changes and consumer needs, Cosmo Beauty will continue to launch new products to meet the individual needs of different consumers. At the same time, Cosmo Beauty should also pay attention to the maintenance and improvement of product quality and style, so that consumers can enjoy professional underwear services at reasonable prices.
Finally, Cosmo Beauty needs to improve its own channel layout and operation management to improve channel efficiency and profitability. Cosmo Beauty should rationally plan the number and location of stores based on the characteristics and potential of different regions and cities, and avoid over-expansion or over-concentration. At the same time, Cosmo Beauty also needs to strengthen training and guidance for franchisees and partners to help them improve their business level and effectiveness.
Overall, the Cosmo Beauty 2023 Autumn/Winter Order Fair is an important display opportunity to show your achievements and confidence, convey your original intention and vision, and seize the opportunities and challenges in the underwear market. At present, the competition in the underwear market is becoming increasingly fierce, and the development of underwear brands is facing new opportunities and challenges. As a leader in the underwear industry, Cosmo Lady still needs to constantly adapt to market changes, do a good job in brand management, and improve product quality and service levels to meet the constantly upgrading needs of consumers.
Source: Songuo Finance