Lin Chen/Wen
Caijing News controls the order volume + nearby delivery + fast return replenishment, so that the operational efficiency of Heilan Home's offline and online linkage is continuously improved.
Recently, Heilan Home released its financial report for the first three quarters of 2021. Revenue was 14.156 billion yuan, an increase of 20.19% year-on-year, and net profit attributable to the mother was 2.048 billion yuan, an increase of 58.7% year-on-year. Among them, in the context of revenue that has not been the same as last year, the net profit volume has exceeded the level of 1.785 billion yuan in the whole of last year. The recovery of profit margins mainly comes from the trend of balanced growth rate and gross profit margin improvement between brands and online and offline channels.
By brand, as the main brand, heilan home series has accelerated the gross profit growth rate compared with the semi-annual report by delaying the cost growth rate to help the gross profit margin of the series rise back to 44.6%. Similarly, other brands, including women's OVVs and children's wear, also achieved cost control and efficiency in the third quarter, and the gross profit increase accelerated to 6.74%.
Image source: Screenshot of the announcement
By channel, the online business continued its high double-digit growth, with a total of 1.95 billion yuan sold in the first nine months, accounting for 14.34% of the total revenue, an increase of about 2.6 percentage points from 11.75% at the end of 2020. However, although its online gross profit margin is nearly 3 points higher than in the first quarter, the level of 37.33% is still in volatility.
Offline, due to the impact of the epidemic last year, the gross profit margin at that time was only maintained at about 40%. In the first three quarters of this year, the offline gross profit margin continued to rise to 46.57%. From the perspective of the operational efficiency of directly operated stores and franchised stores, it is mainly due to the continuous expansion of the growth rate of main business income and cost, or even nearly doubled. It is also in this way that the comprehensive gross profit margin of the store continues to rise.
The improvement in the operation of offline stores lies in the adjustment of the store structure, the increase in sales volume, and the linkage with online business. According to the caijing network, Heilan Home has been adjusting the structure of department stores and street stores, including increasing the expansion of shopping mall stores. In addition, it also hopes to accelerate the interconnection of online and offline de-channels by increasing the proportion of directly operated stores.
Judging from the store data of its third quarterly report, taking the main brand Heilan Home series as an example, 182 new stores have been opened in franchised joint stores, less than the volume of 286 closed stores, resulting in a net decrease of 104 stores of this type. As for the direct sales store, only 51 stores were closed, and 215 new ones were opened. The proportion of directly operated stores of the main brand increased from 8.77% at the beginning of the year to 11.6%.
The increase in direct-operated stores objectively increases the density of "front warehouses" that can be linked with online business. Heilan Home told Caijing that after the user consumes online, the company will give priority to delivering goods from the nearest store where the goods are received. If the store does not have it, it will be shipped from the headquarters warehouse.
"This year has also increased the performance incentives for salespeople." Heilan Home told the finance and economics network Sankei, "Management positions are calculated according to the annual salary system, assessment system, and front-line post output work division system." It is also understood that the operation of the store is also tilting towards the rapid response mode. It is reported that Heilan Home is reforming the distribution linkage mechanism, controlling the amount of orders placed in the early stage, replenishing goods with rapid orders and rapid new fast return methods, and improving the sales rate of products.