Shulou(Shulou.com)06/02 Report--

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Recently, luxury e-commerce company Temple Library released its unaudited results for the first quarter ended March 31, 2020.

Shiku, the big brother of luxury e-commerce, was not easy in the first quarter of 2020, and the originally difficult days were even worse in the epidemic. According to the financial report, in the first quarter of 2020, Saku's revenue was 1.005 billion yuan, down 14.5% from the same period last year, compared with 1.175 billion yuan in the same period last year. The net loss was 42.5 million yuan, compared with a profit of 15.8 million yuan in the same period last year.

The poor performance of Siku led to a sharp fall in its share price, which was down 3.73% at $3.10 as of Friday's close. Shiku now has a market capitalization of $187 million, down sharply from its peak of $770 million.

one disaster after another

COVID-19 epidemic has a real impact on the luxury market.

According to the Global luxury Industry Research report 2020 Spring Edition, jointly published by Bain and the Italian luxury industry association Fondazione Altagamma, sales of the global personal luxury market fell by 25 per cent in the first quarter of 2020 and are likely to accelerate by the second quarter, with the market expected to shrink by 20 per cent and 35 per cent for the whole year, depending on the speed of recovery after the epidemic.

No one can be left alone in the predicament, and a number of luxury brands have announced layoffs.

Recently, the British Burberry announced that the company will be restructured, which is expected to cut 500 jobs worldwide, after it revealed that sales fell by nearly half in the first half of this year. The well-known Austrian jewelry brand swarovski (Swarovski) was also affected, announcing 600 layoffs at the end of June. And Harold, a British luxury department store, announced that it would lay off nearly 700,800 people and open OUTLETS discount stores that sell directly to major brands.

Luxury brands are having a hard time, and Teraku, one of the few remaining players in luxury e-commerce, also faces problems. According to the latest financial report, Siku, which has made profits for 14 consecutive quarters after its listing, has lost money.

According to the financial report, in the first quarter of 2020, Saku achieved revenue of 1.005 billion yuan, down 14.5% from 1.175 billion yuan in the same period last year, and a net loss of 42.5 million yuan, compared with a profit of 15.8 million yuan in the same period last year.

In the first quarter of 2020, the basic profit and diluted net loss per share of Siku were both 1.68 yuan, compared with 0.56 yuan and 0.54 yuan, respectively, in the first quarter of 2019.

In the face of declining revenue and turning from profit to loss, Siku said it has a great causal relationship with the impact of the epidemic. However, although the public spending power has been weakened by the epidemic, luxury goods have been even more affected as a non-essential part of daily life, but the fatigue revealed in the Siku financial report has long existed.

The speed of making money slows down

Since its establishment in 2008, the 12-year-old Shiku has gradually shown signs of fatigue.

Siku's data on active users was 340000 in the first quarter of 2020, an increase of 11.5 per cent compared with the same period last year. In the four quarters of 2019, the growth rate of active users was 89.5%, 67.7%, 58.7% and 50.9%, respectively. It can be seen that the growth rate of Siku has slowed down significantly recently.

In terms of GMV, it was 2.476 billion yuan in the first quarter of 2020, an increase of 12.2% compared with the same period last year. In the four quarters of 2019, GMV grew by 97.1%, 95.9%, 66.8% and 51.9%, respectively.

The total number of unilateral orders was 723000 in the first quarter of 2020, an increase of 11.6 per cent over the same period last year. In the four quarters of 2019, the year-on-year growth rate of total orders was 111.6%, 109.4%, 74.2% and 48.4% respectively.

As the growth rate in all aspects slows down, the revenue growth rate of Temple Bank will inevitably have problems. In the first quarter of 2020, Saku achieved revenue of 1.005 billion yuan, down 14.5 per cent from 1.175 billion yuan in the same period last year.

At the same time, when the temple bank faces the problem of earning power, it has to enter the day of shrinking clothes and dieting, and the temple bank is trying its best to reduce the revenue cost.

Data show that the revenue cost of Siku in the first quarter of 2020 was 845 million yuan, down 8.9% from the same period last year. For a long time, the revenue cost of Shiku accounts for more than 80% of its revenue, which is a considerable expense for Shiku. The current temple library, what is needed is not only to cut expenditure, but also to open source. In order to seek new growth points, Temple Library has embarked on the road of live broadcast with goods.

It is difficult to catch up with the tuyere of live broadcast.

Now the live broadcast with goods has become the tuyere that can not be missed, the major platforms, a large number of bosses have been launched, as a luxury e-commerce temple library also do not want to be left behind.

Judging from the information released by Siku, it can be said that it has done a good job in live broadcasting.

Siku has established a cooperative relationship with two of the most popular short video social platforms, Kuaishou and Douyin, and conducted a series of cross-platform live streaming activities. On June 7, Teraku and Kuaishou held a nearly five-hour live broadcast of luxury goods, including dozens of luxury brands, such as Hermes, Armani, Gucci, LV and so on. Within five hours, the special live broadcast of luxury goods conducted by Siku and Kuaishou brought goods of 105 million yuan.

Due to the epidemic, a large number of luxury brands are more likely to cooperate with e-commerce platforms, but compared with other strong platforms such as JD.com and Tmall, the competition pressure of Temple Bank is not small.

JD.com is the largest shareholder in British luxury e-commerce platform Farfetch, while JD.com got a lot of brand resources from Kering Group and Burberry Group, and Tmall launched luxury channel LuxuryPavilion. If luxury brands want to boost themselves online, the first priority is the head e-commerce platform.

Belgian leather brand Delvaux has launched JD.com, Prada and its brand MiuMiu in Tmall's flagship stores, and even Tencent WeChat Mini Programs has introduced a number of luxury brands. The span of these platforms to the luxury e-commerce track further squeezes the living space of the temple library. And the emergence of fun shop for the temple library can be a life-saving recipe, or a mystery.

Connect with the fun store, the road ahead is unknown.

As soon as the news of Qodian's subscription for Siku shares came out, the share prices of Siku and Judian rose, the share price of Siku soared by 52.56%, and the share price of Xidian rose 5.44%. But this momentum did not last long, and the share prices of Siku and Qidian fell again.

Although the luxury e-commerce platform Wanlimu and the temple library of the fun store seem to be very suitable, they have lost money in both the store and the temple store. and there is a gap between the two holding cash and cash equivalents and tens of billions of subsidy slogans printed before the store.

According to the financial report data, the cash, cash equivalents and cash restrictions of the temple treasury were 733 million yuan in the first quarter of 2020. The data show that the cash and cash equivalents of the store in the first quarter were 1.516 billion yuan, the net cash provided by operating activities was 522 million yuan, and the restricted cash was 540 million yuan.

At the same time, the next performance outlook of the fun store is not optimistic. Saku is also facing difficulties and dangers in the luxury market. The current revenue growth rate of Saku has reached the lowest level since the listing, and the profit situation that has been maintained has been broken and plunged into losses. Although Siku is trying its best to find new growth points, it will take time to verify.

Against this background, whether the temple library wants to rekindle its vitality through the fun store, or whether it wants the temple library to fill its luxury e-commerce road, it does not look easy.

(official account of Liu Kuang / tr. by Phil Newell) ID:liukuang110

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