Supply chain propaganda banner slogan

China daily necessities industry leader.

Famous products were founded on 20 13, focusing on fashion daily necessities. The product covers 1 1 category, including 8,000 core SKUs such as home, beauty, stationery and gifts, snack food, textiles, electronic appliances and toys. Product positioning is "three highs and three lows-high quality, high value and high frequency; With low cost, low gross profit and low price, it is the world's largest self-owned brand daily necessities retailer.

"Class joining" is a light asset model, with fast channel expansion and global expansion.

By the end of February, 65438+2020, * * * had 45 14 stores, distributed in more than 80 countries and regions around the world, of which 2768 were located in China, and only 7 were directly operated stores. 1746 stores are located overseas, and about 7% of them are directly operated stores. Under the influence of the epidemic, the number of overseas stores still maintained a positive growth as a whole, while domestic stores resumed a positive growth from FY2 1Q 1, and the growth rate was higher than that of overseas stores due to better epidemic control. The company's operating income mainly consists of daily necessities sales, authorization and management fees, and sales of equipment to franchisees and distributors. Among them, the sales of daily necessities account for about 90% of revenue, and about 57% of this revenue is sold to franchisees from the perspective of channels; Authorization and management fees account for about 65% of revenue; Regionally, 67% of the income comes from China. FY20 has an operating income of * * * 8.979 billion yuan, a net profit of-260 million yuan and an adjusted net profit of 9.71100 million yuan.

From the blue sky to the sea of stars, the global layout of store channels

Famous products were formally established in 20 13, and the first store was opened in Guangzhou in June of the same year 1 1. Since then, the company has concentrated on expanding its stores in Guangzhou. By the end of 20 14, the number of stores has exceeded 300. In 20 15, Mingteyoupin announced an overall brand upgrade and began to accelerate its expansion by joining the same category. On 20 16, the company began to go overseas. By the end of 20 18, the number of overseas stores exceeded 1000, and the total number of stores exceeded 3,000. In 20 18, the company obtained strategic investment from Tencent and Gaoyou, further enriched the brand content, launched a number of co-branded products with Marvel Comics, HelloKitty, the glory of the king and other IPs, and strengthened product research and development. Many products have won international design awards, such as iF, Reddot and A'DesignAward. In 2020, the company was successfully listed on the New York Stock Exchange. By February 2020, there will be 14 stores in the world.

Table 2: the development of famous and excellent products has gone through the process from small chain format to global layout;

Table 2: Team Stability of Founding Team:

Table 3: Strategic Investment of Founder Holdings, Tencent and Gaoling

Restore the consumption changes in the United States and Japan: return to rationality, coexistence of quality consumption and cost-effective demand is the general direction of consumer demand development, and goods with good quality and low price and high cost-effective are the common needs of consumers all over the world;

Table 3: American consumption has gone through three stages and has entered the era of rational consumption.

Table 4: There are many top suppliers in the company's supplier list.

Expanding light assets and low marginal cost stores, and omni-channel layout at home and abroad.

The expansion of low marginal cost depends on quasi-franchise mode, and the analysis of management rights overcomes the disadvantages of mixed franchise stores. Franchisees bear the upfront investment and store operating costs, which greatly reduces the cost of store expansion. At the same time, the company operates stores in a standardized mode. Store location, store display, operation and recruitment are all managed by the company in a unified way, which realizes the unification and standardization of direct sales, comprehensively grasps the sales data of stores, and provides a basis for decision-making such as updating, replenishment and goods adjustment.

Franchisees have short payback period, quick return, less energy and high loyalty.

The payback period of the franchisee's investment in famous products is 12- 15 months, and 38% of the daily turnover (33% is food) will be transferred to the franchisee's account the next day; The daily operation of the store is provided by the company, and the ownership of the goods is also owned by the company. Franchisees do not have to bear the inventory pressure. By June 2020, 488 of the company's 742 franchisees have cooperated for more than 3 years. The two sides give full play to their respective advantages, win each other and maintain a stable cooperative relationship. In the franchise mode of famous products, the investment and expenses of stores are separated from management, and the funds from franchisees greatly reduce the expansion pressure of famous products, while the advantages of famous products in development and design, supply chain and management improve efficiency and standardization.

Table 5: Calculation of Single Store Mode of Company's Three Types of Franchise Stores (Unit: 10,000 Yuan)

Table 6: According to different national conditions, the company's overseas channels are expanded in three modes.

Omni-channel layout, small programs, e-commerce platforms, communities and other emerging channels are all involved. Famous products are sold in third-party take-out, e-commerce platforms and small programs to open online malls. Wechat applet provides preferential services such as "express delivery in the same city" and "packaging and delivery of goods". Consumers can also use the small program "self-service cashier" to check out offline consumption, so as to enhance the shopping experience of consumers. At the same time, the live broadcast is used to attract traffic, and the WeChat group is used as the carrier for community promotion and sales to improve the repurchase rate and stickiness of customers.

Product design, IP empowerment and digital operation ability support brand value.

Practice the concept of "product is king", pay attention to design, high-frequency innovation and IP joint name to keep freshness, enrich categories, continuously strengthen brand power and attract more high-quality franchisees.

IP co-branding: As of June 2020, Mingchuangyou products had established brand cooperation relations with 17 IP licensees, and * * * launched 2,300 co-branded SKUs, including Marvel Comics, Disney, Forbidden City Culture, Coca-Cola, etc., and opened a black gold store with the theme of Marvel Comics on April 38+09, 2065, extending the IP co-branding from products to the whole scene of the store.

Adopt intelligent retail and digital store management system to improve operational efficiency.

Stores, logistics and distribution, suppliers

Future development; Expand the store, brand and image.

Domestic: the third and fourth lines continue to be encrypted, and the first and second lines improve efficiency.

Optimize site selection, refine operation and improve the efficiency of stores in first-and second-tier cities.

Stores in first-and second-tier cities account for about 67% of the total number of stores in China, and the increase in single-store income will have a greater impact on the company's overall operating income. Stores can improve efficiency and reduce costs through the following two aspects:

Optimize store location:

The location of the store will directly affect the passenger flow, such as the core location of the business circle and shopping center. After shopping, it is more likely to shop in the store and the customer conversion rate is high;

With the help of digital tools to achieve further refined management.

The combination of online and offline scenes, on the one hand, creates a private traffic pool through omni-channel layout, and at the same time, customizes the product delivery and category combination of different stores according to the consumption records of offline passengers and the activity trajectory in the store, and conducts targeted supply in conjunction with the supply chain system, which improves the repurchase rate of customers and reduces operating costs.

Expand the brand and enhance the image: TOPTOY sub-brands cut into the tide play market.

Under the X strategy, use the TOPTOY sub-brand to cut into the tide play track.

From June, 5438 to February, 2020, the company established its sub-brand TOPTOY, positioning itself as a trend store in Asia, making full use of channel integration and IP resources, grasping the consumption trend after years of operation, cutting into the trend market and building a platform-based independent brand. TOPTPY's products include seven categories: artistic fashion, Japanese handicrafts, exquisite handicrafts, blind boxes, doll models, assembled models and building blocks. Among them, blind box products account for about 30%, with prices ranging from 39 yuan to several thousand yuan, most of which are in 39-49 yuan, doll models are between 150-250 yuan, and the limited model products are as high as 1,000 yuan.

The channel has expanded rapidly, and the data such as passenger flow and customer unit price are eye-catching.

At present, TOPTOY has opened 9 stores in 5 cities across the country, and quickly laid out robot stores nationwide. Different stores focus on different styles to attract more types of consumers. After the opening of the first store of TOPTOY, the cumulative passenger flow exceeded 200,000 in one month, and the working day turnover remained stable at more than 654.38+10,000 yuan. The unit price of customers has always been above 200 yuan. After more than two months of listing, the achievements of offline stores and robot stores have exceeded 65,438+million, with more than 65,438+million fans and more than 70,000 members.

Expanding channels, incubating its own IP and laying out overseas will be an important increment in the future.

The offline expansion of DreamWorks stores and robot stores, the online layout of third-party e-commerce and social platforms, etc. At present, more than 90% of Top Toy's products are third-party IP cooperation, and IP incubation capability will be strengthened in the future; Relying on the layout of world-renowned boutique stores, TOPTOY has a certain logistics and brand foundation when going overseas.