Beijing News Shell Finance News (Reporter Wang Zhenzhen) On the evening of March 29, Ningbo Peacebird Fashion Co., Ltd. (hereinafter referred to as "Peacebird") released its 2021 performance report.

During the reporting period, PEACEBIRD achieved an operating income of 10.921 billion yuan, an increase of 16.34% year-on-year, and exceeded 10 billion yuan for the first time; its net profit decreased by 4.99% year-on-year to 677 million yuan. PEACEBIRD said that this was mainly due to the decline in retail performance in the fourth quarter and the increase in expenses, etc. influence.

　　After the market opened on March 30, the stock price trend of Peacebird changed from the previous day's decline.

As of press time, Peacebird rose 3.19% intraday, at 21 yuan per share, with a market value of about 10 billion yuan.

　　Close to the young consumer group, PEACEBIRD adopts a multi-pronged approach to "stably" make money

　　Peacebird, founded in 1996, is already a "veteran" in the clothing industry.

Since 2015, under the background of the weak domestic apparel market and the rise of new-generation consumers, PEACEBIRD has proposed a rejuvenation strategy, taking the lead in focusing on the "new-generation" youth culture and positioning the mid-range casual fashion market.

Peacebird, which is committed to becoming the "preferred fashion brand for Chinese youth", continues to reform and optimize its brand layout, products and channels in order to be close to young consumers.

　　At present, PEACEBIRD owns PEACEBIRD women's clothing, PEACEBIRD men's clothing, Leding girls' clothing, Mini Peace children's clothing, MG material girl women's clothing, COPPOLELLA, Baguette children's clothing and other brands. 30-year-old young men and women, etc.

The data shows that in 2021, the revenue of PEACEBIRD women's clothing and PEACEBIRD men's clothing will be 4.48 billion yuan and 3.37 billion yuan respectively, accounting for about 72% of the company's total revenue, and leading the company's other brands with gross profit margins of 55.87% and 53.32% respectively .

From the perspective of revenue growth, the Mini Peace children's clothing brand has stepped out of the trough, with revenue increasing by 29.53% compared with the same period in 2020, and gross profit margin increasing by 0.12 percentage points to 51.27%.

　　Yang Dayun, founder of SFC Sustainable Fashion Center, pointed out that in the online channels and social platforms that young groups rely more on, Peacebird, which was deployed early, has invested a lot of energy.

Today, Peacebird has achieved a comprehensive layout of traditional channels such as Tmall, JD.com, and Vipshop, as well as live broadcast and social e-commerce channels such as Douyin, Station B, and Xiaohongshu.

In 2021, PEACEBIRD, which is developing social new retail, will increase its online channel revenue by 80% year-on-year to 3.36 billion yuan, accounting for more than 30%.

Among them, the performance on Douyin is outstanding. In 2021, the Douyin channel will contribute about 20% of the e-commerce retail performance to Peacebird.

　　At the same time, Peacebird's offline channel optimization has not stopped.

In 2021, PEACEBIRD's offline sales revenue will be about 7.5 billion yuan, accounting for about 69% of the total revenue. Among them, direct sales and franchise channel revenue will increase by 13% and 24% year-on-year to 4.61 billion yuan and 2.85 billion yuan respectively.

By the end of 2021, Peacebird had 5,214 stores, including 1,616 directly-operated stores and 3,598 franchise stores.

　　In order to capture the "Generation Z" consumers, Peacebird did not hesitate to spend a lot of money to invite traffic stars to do endorsements.

In 2021, Peacebird has invited Ouyang Nana, Yu Shuxin, Bai Jingting, Wang Yibo and others to become its brand spokespersons.

It is also one of the delivery methods of Peacebird to continuously log in to the live broadcast rooms of leading anchors and celebrities such as Li Jiaqi.

In addition, PEACEBIRD is well aware of the attractiveness of IP co-branding to "Generation Z" fashion consumption.

After co-branding Feiyue, Double Happiness, Disney, Harry Potter and other domestic and foreign animation IPs, in 2021, PEACEBIRD will increase IP and designer cooperation related to the national trend, and successively launch PEACEBIRD women's clothing and national treasures, Le Ding LEDIN Co-branded with Dunhuang Museum, etc.

　　Relying on strategies such as cross-border co-branding, traffic stars, and diversified e-commerce layout, Peacebird has become one of the few apparel companies that has grown against the trend since the outbreak of the epidemic.

Although the growth rate of Taipingbird's net profit in 2021 is slightly lower than that in 2020, the net profit of 677 million yuan is still much higher than the level in 2019 and before.

　　Beneath the dividend, the hidden worries of Peacebird

　　While enjoying the dividend of young traffic, Peacebird is also facing the "side effect" brought by the dividend - the speed of launching new products needs to "race against time".

According to reports, PEACEBIRD puts nearly 10,000 new products on the market a year, retail stores have new products every 1-2 weeks, and online stores generally have new products every week.

At the same time, the high frequency also caused the problem of high inventory.

　　As of December 31, 2021, the net inventory value of Peacebird was 2.54 billion yuan, an increase of 280 million yuan or 12.56% over the end of 2020; the book value of inventory commodities accounted for 96.11% of the book value of inventory at the end of the period, accounting for 96.11% of total assets is 23.95%.

It is also disclosed that in 2021, the inventory of Taiping bird dresses and T-shirts will increase by 30.21% and 28.61% respectively year-on-year.

In addition, the inventory turnover days in 2021 will be 168 days, an increase of 2 days from the previous year.

　　The Beijing News Shell Finance reporter noticed that with the continuous promotion of "quick response management" of the supply chain and the effective handling of out-of-season goods through e-commerce, Outlets and other channels, the inventory structure of Peacebird in 2021 will be gradually optimized. Among them, more than one year of inventory The proportion of the book balance of goods decreased by 3 percentage points year-on-year to 31%.

　　It is worth noting that frequent new releases have also put a test to the research and development of Peacebird.

On the one hand, PEACEBIRD emphasizes that it has invested heavily in apparel design and research and development. It has a research and development team of 637 people, and performs national fashion culture through co-branding and cooperation with pioneer designers and well-known clothing colleges. In 2021, research and development expenses will increase by 30.74% year-on-year to 152 million yuan; on the other hand, Peacebird, which emphasizes the power of originality, is deeply involved in plagiarism.

Just after Double Eleven in 2021, Peacebird was on Weibo hot search after being accused of plagiarism by a domestic niche original brand.

Some netizens pointed out that Peacebird was suspected of plagiarizing several clothing brands, including offwhite, FREI, mgje, moussy, etc., and was even accused of plagiarizing its works by foreign visual artists.

　　Faced with the question of plagiarism, Peacebird did not respond publicly, but said in an interview with the media that "it has a dedicated brand designer and photography team. If plagiarism is really involved, the original brand can go through legal channels, and our side will also specialize in it. There is a connection".

At the same time, Taiping bird related stores removed the clothing products involved.

Although the cold treatment method has gradually cooled the heat of the Taiping bird plagiarism incident, Ma Gang, an independent commentator in the clothing industry, believes that according to the situation of netizens, the frequency of Taiping bird plagiarism is more frequent, reflecting that there are some problems in its internal management. However, we still have to find a way to solve it properly.”

　　In addition, focusing on marketing and ignoring R&D is also a problem that Peacebird needs to solve.

In 2021, PEACEBIRD's sales expenses including advertising expenses will be 3.949 billion yuan, accounting for about 36% of operating income, which is 26 times of R&D expenses; R&D expenses will only account for 1.29% of operating income, slightly higher than 1.24% in 2020. %.