Baozi The group recently released its interim results in 2014. The report shows that in the first 6 months of this year, the turnover of the company was 965 million yuan, compared with 1 billion 76 million yuan in the same period last year, a decrease of 10.3%. Operating profit dropped 47.3% to 205 million yuan this year, with net profit of 54 million 965 thousand yuan, 60.7% yuan lower than the same period last year, and the profit per share was 0.1 yuan.

Po also said that in order to expand the retail network and enhance product development, group investment increased correspondingly, resulting in a significant decrease in cash flow from operating activities over the same period last year. Therefore, the board recommended that the interim dividend be suspended.

All along, Baozi's turnover is composed of retail turnover and wholesale turnover. In the first half of the year, its retail sales amounted to 877 million yuan, compared with 976 million yuan in the same period last year, a decrease of 10.1%, while the other distribution business was 87 million yuan, compared with 100 million yuan in the same period last year, a decrease of 11.8%. In addition, according to the data, Bao 2010~2013 has a growth trend in the first 6 months of the year, but this year it suddenly slipped.

Regarding this Baozi The decline in the retail sector is mainly due to the weak consumption in the Chinese luxury market. The decrease in other branches' turnover is due to a decrease in the manufacturing revenue of the original equipment. In addition, the company is optimizing the store network to maintain a more efficient sales channel. As a result, the ratio of retail sales to total turnover increased slightly from 90.7% in the first half of 2013 to 90.9% in the first half of 2014.

In addition to the decline in turnover, the number of entity stores has also decreased. Data show that in the first half of this year, Baozi operates 327 retail outlets in mainland China, Hongkong, the United States and Canada, a decrease of 25 compared with the same period last year. According to 2013 data, Baozi has closed 40 retail stores in 2013.

Tang Xiaotang, an analyst with luxury goods and apparel retailing industry, said baozi's international strategy has been very difficult to achieve. At present, the general recognition of baozi is the domestic brand, which reflects the common phenomenon of the whole domestic women's clothing business. The domestic women's clothing has long been the main white-collar style. After the large-scale entry of the international brand, China's price is not as fast as that of the fast fashion brand, and the brand is no match for the European and American luxury brands, and has no competitive advantage.

according to understand In February this year in Milan fashion week, Baozi group international brand Ports1961 launched its handbag business, while continuing to release men's and women's wear. However, at present, Ports1961 accounts for only a small share of the group and is unable to improve its overall performance. Ports1961 business also suffered setbacks. From the end of 2012 to the beginning of 2013, Ports1961 shut down its independent stores in Losangeles and Toronto. In addition, Tang Xiaotang also said that although baozi is located in the middle and high-end, but for a long time, its consumer groups are questionable.