Top 1 Chinese E-commerce Agency Baozun Gained $13.4 Million in Beauty
- Chaileedo Press
- May 29, 2022
- 3 min read
Chinesea leading digital technology and solution company Baozun achieved beauty online store revenue was $13.4 million, accounting for 5% of total revenue, up 2% year-on-year. Up to now, six more representative Chinese cosmetic e-commerce agency companies - Baozun, ChanceMate, RuoYuChen, Lily&Beauty, and UNQ have been listed.
On the evening of May 26, Baozun announced its financial results for the first quarter that ended March 31, 2022. Its net revenue for the first quarter was $296 million, down 2% year-over-year, including service revenue of $195 million, up 24.3% year-over-year; operating loss of $6.2 million, compared with an operating profit of $7.9 million for the same period last year; net loss attributable to ordinary shareholders of Baozun Ltd. was $18.2 million, compared with a net profit of $194 thousand for the same period last year.
Specifically, its total transaction volume (GMV) was $2.5 billion, an increase of 28.4% year-over-year. Its distribution GMV (referring to GMV under the distribution business model) was $114 million, a decrease of 28.8% year-over-year.
GMV of non-Tmall trading platform and channel accounted for 40% of total GMV in the first quarter. The year-on-year growth rate of GMV of Jingdong, Wechat mini program and Douyin exceeded 100%. Meanwhile, Baozun opened a number of new stores in Jingdong in the first quarter, covering beauty, luxury goods, apparel and other sectors.
By channel, beauty online store revenue was $13.4 million, accounting for 5% of total revenue, up 2% year-on-year.
According to the report, since March, including Shanghai, where Baozun's headquarters is located, and many cities across the country have been affected by the pandemic quarantine epidemic and strict control measures have been implemented. Baozun has been able to reduce the impact of the epidemic through its mature digital operation system, solid technology infrastructure, strategically deployed warehouses and expanding regional service centers.
In addition, although Baozun store operation revenue declined in the first quarter, value-added services such as digital marketing and technology services achieved high double-digit year-over-year growth. Among them, digital marketing and technology services revenue was $57.6 million, up 39% year-on-year.
Baozun said that based on the uncertainty of the macro environment, the current financial management priority and focus will be on operational efficiency, cash flow management and cost control, and is now confident in the long-term business outlook and strategy.
Baozun was founded at Shanghai, China in 2007. Over the past decade, we have set up branches in Hangzhou, Beijing, Hongkong and Taiwan, with overseas offices located in France，Japan, Korea and the USA. It is a famous brand E-commerce business partner and a leading digital technology and solution company in China.
Its integrated capabilities encompass all aspects of the E-commerce value chain covering IT solutions, store operations, digital marketing, customer services, warehousing and fulfillment. It helps brand execute their E-commerce strategies by selling their goods directly to customers online or by providing services to assist with their E-commerce operations. Its business ranges from Chinese brands’ official stores, well-known online shopping platforms-Tmall and JD.com, as well as WeChat Mini programs, Douyin, and O2O smart store, to overseas famous online shopping platforms such as LAZADA, SHOPEE, HKTVMALL and Yahoo super mall. Rooted in the evolving digital business, driven by technology, it digs into each area of supply chains, makes customized solutions for brands, and builds a communication bridge with customers.
Baozun was listed on NASDAQ in May 2015 and completed the secondary dual-listing on HKEX in September 2020.
China's e-commerce development so far, as the agency operator, not only is the recorder, witness, but also the history of the maker. Up to now, six more representative Chinese cosmetic e-commerce agency companies - Baozun, ChanceMate, RuoYuChen, Lily&Beauty, and UNQ have been listed.
The e-commerce services of ChanceMate are focused on the FMCG vertical.
According to the disclosure, ChanceMate's partner brands include Procter & Gamble (PG.N), Pechoin, Elizabeth Arden (USA), Amore Pacific Group (090430.KS) (Korea), Aupres, Mao Geping, PopMart (09992.HK) (Japan), Mengniu (02319.HK), Yanker Shop (002847.SZ) (Japan), etc.
Lily&Beauty, on the other hand, focuses on the beauty vertical categories. Cooperating beauty brands include more than 60 brands such as Erno Laszlo, Whoo, freeplus, Sulwhasoo, Avène and Schwarzkopf.
Compared to ChanceMate and Lily&Beauty, Baozun covers more vertical fields.
The company currently covers 8 vertical fields including beauty/ FMCG, home building materials, internet finance, automotive, apparel, 3C digital, home appliances, and food/healthcare products, with more than 250 partner brands. In the field of beauty and cosmetics, it has cooperated with international beauty brands such as Estee Lauder, MAC, POLA, NIVEA, Jo Malone, La Mer and others.
From 2017 to 2020, Baozun's revenue grows from $620 million to $1.32 billion, with a CAGR of 28.7% over the period, which is higher than the number of brand partners over the same period.
In 2020, the Company's revenue growth rate is 21.6%, while the previous two consecutive years of 2018 and 2019 have maintained revenue growth rates of over 30%.
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