Research Report: franchising business is still declining, but the decline narrowed and direct business remained stable.

In the first three quarters, revenue was 1 billion 495 million, net profit was 307 million, down by 15.07% and 27.99% respectively.

By the end of November, the number of outlets and the same store grew by 0-5%, and the revenue of the franchise was down by about 20%.

From the number of stores, the franchisee closed more than more than 200, and more than 70 new outlets.

Under the weak situation, the performance of direct shops is very difficult, reflecting the excellent shop management ability of the company.

The franchising business is due to the flat structure of the franchisees, most of which are only responsible for single digit shops, and the ability to resist risks is weak, so it is easy to withdraw from the market in a downturn.

With the end of inventory, we expect that the willingness of the franchisees to reopen will slowly rise in the second half of 15 years.

Double 11 quarter sales of about 50000000, about 30000000 in the same period last year, 15 year sales are expected to reach 150 million.

The original location of the electricity supplier channel was used to clean up the stock, but this year it began to upgrade, and the price and online special contributions on the offline line were 3% and 30% respectively.

The O2O strategy is: the first step is to get through the warehouse of the branch and the head office. At present, a total of 10 branches join in the plan. The second step is to open up the franchisee and the headquarters, such as Anhui and other provincial agents, 20-30 large one or two level franchisees have joined.

The essence of this is to build a storage cloud terminal, unify the headquarters, branch offices and franchisee warehouses. After unified warehouse system, the order will be generated in the future, and the goods will be allocated by the local branch or franchisee first, and the franchisee will gradually become the service provider of the company.

The strategy of advanced customization is to take suit shirt as a breakthrough category and share the same price with the exclusive store. The supply chain efficiency of the company is improving, and gradually begin to support the flexible production that Gao Ding needs.