The financial report shows that Baozun’s GMV in the first quarter of 2020 was RMB 9.210 billion, an increase of 17.6% year-on-year. Total net revenue was RMB 1.524 billion, an increase of 18.4% year-on-year.
On June 2, Baozun E-Commerce (NASDAQ:BZUN) released its first quarter financial report as of March 31, 2020. The financial report shows that Baozun’s GMV in the first quarter of 2020 was RMB 9.210 billion, an increase of 17.6% year-on-year. Total net revenue was RMB 1.524 billion, an increase of 18.4% year-on-year. Since the outbreak of the epidemic in early 2020, crises and opportunities co-exist in the e-commerce industry, Baozun has accelerated business innovation, empowered the brand to recover quickly and accelerated its online strategic layout.
Chou Wenbin, Chairman and CEO of Baozun E-Commerce, said: “Thank you to all our employees for their perseverance and dedication to maintain high-quality continuous service capabilities and performance growth in special periods. We are proud of our flexibility and emergency response capabilities. With the accelerated recovery of the domestic economy in the second quarter, we believe that online retail will accelerate, and brand partners will pay more attention to digital strategies. /p>
Capture the opportunities under the epidemic and deepen the brandValue chain
Under the influence of the new crown epidemic, the macro environment in 2020 is quite challenging. Baozun helps the brand to reduce risks through difficulties through its continuous operational capabilities, adhering to the mission of “science and technology for business future”, optimizing service capabilities in the epidemic and empowering the brand Upgrade e-commerce strength. In the first quarter of 2020, GMV and total net revenue achieved a year-on-year increase of 18%, exceeding the company’s previous guidance. At the same time, Baozun continued to optimize the brand portfolio matrix in the epidemic. In the first quarter, Baozun added 8 brand partners, including a well-known European furniture retailer, and also in some high-growth categories, such as luxury goods and fast-moving consumer goods. A series of brand partners have been added to inject vitality into the business.
During the epidemic, Baozun’s self-operated warehouses maintained uninterrupted operations and highly efficient services, and the integrated system of “online and offline inventory” effectively configured goods. The logistics and supply chain business group has also developed from a traditional pure e-commerce partner to a new retail logistics service model that integrates warehouses, stores, platforms, and after-sales services, while helping brands digest offline inventory and reduce inventory risks. Although a series of measures led to a temporary increase in costs in the first quarter, as a digital decision-making service provider, Baozun continued to escort brand partners while meeting brand needs and innovating e-commerce capabilities, which further deepened the close ties between the two parties. .
Activate new and old users to stimulate new demand
In the epidemic situation, live broadcasting has become the new main force of drainage, and it has also become one of the new forces of Baozun digital marketing. In addition to continuing to deepen its efforts in the traditional e-commerce field, Baozun has also collaborated with short-video social media platforms such as Douyin and Kuaishou to plan high-quality live content for the brand and pursue the unity of product and sales returning to the brand’s original intention. At the same time, affected by the epidemic, consumers’ home time has risen. Baozun has closely adjusted its operation strategy to meet the consumer demand and mentality of home entertainment, remote work, and health protection under the “house economy”, and further optimize the marketing methods.
For example, before the e-commerce flow has been restored, Baozun helped a well-known international beverage brand to plan the “Sakura Season” theme event in early March, with the “Cloud Appreciation Sakura” praying interactive interface, which has a ceremonial form in special seasons To leave good wishes for yourself and your family. The event attracted more than 500,000 viewers and drove the increase in conversion rate, highlighting the strength of Baozun’s integrated marketing, and it has also become a good consumer operation during the epidemic.
The gradual control of the domestic epidemic situation began in late March, and the economy has further recovered to this day. The epidemic has made more brands pay more attention to online retailing. Baozun upholds the vision of “science and technology for the future of business”, continues to focus on technology-driven digitalization and innovation capabilities, and joins hands with brands to embrace the continued prosperity of e-commerce needs.
Baozun CFO Lu Bin said: “Despite the uncertainties in the macro economy this quarter, our business still showsThe excellent toughness achieved a healthy growth of 17.6% year-on-year in GMV and 18.4% year-on-year in total net revenue. Although the operating costs have been affected by the epidemic, the robustness and toughness of Baozun’s business and its strong endurance during special periods have been highly recognized by brand partners, further strengthening our industry leading position. Since March, Chinese e-commerce has shown a recovery trend and logistics has also become normalized. We will continue to implement a high-quality growth strategy and expect to achieve a year-on-year increase in non-US GAAP operating profit in the second quarter of 2020 . If the macroeconomic environment does not deteriorate further, we expect GMV to increase by at least 25% in the second quarter of 2020. “
Based on consideration of market environment and operating conditions, Baozun expects total net revenue to be between RMB 2.05 billion and RMB 2.10 billion in the second quarter of 2020, representing a year-on-year increase of 20% to 23%, of which services The revenue growth rate is higher than the total net revenue growth rate. The above performance outlook is the company’s current preliminary estimate. In view of the development of the new coronary pneumonia epidemic in China and other countries, this performance outlook is uncertain.