On May 28th, Baozun Inc announced its financial report for the first quarter of 2024, ending on March 31st.
According to the report, Baozun Inc’s total net revenue for the first quarter was 1.98 billion yuan ($273.1 million), a year-on-year increase of 4.9%. Baozun Inc stated that the growth in total net revenue was mainly driven by a 65.6% increase in product sales revenue from Baozun’s brand management compared to the same period last year. The operating loss was 54.8 million yuan ($7.56 million), and the net loss attributable to Baozun Inc common stock shareholders was 66.6 million yuan (9.19 million). The operating cash flow significantly improved, with an increase of 130 million yuan ($17.93 million) compared to the same period last year.
In the first quarter, the e-commerce business product sales revenue was 3.946 billion yuan ($544.3 million), a decrease of 17.3% year-on-year. The main reason for the decline was the optimization of the product mix in the distribution model, especially in the fast-moving consumer goods category. In terms of sales categories, net revenue from the beauty and cosmetics business was 69 million yuan ($9.52 million), accounting for 3% of the total net revenue, with a year-on-year growth of 4%.
Product sales revenue from brand management was 313 million yuan ($43.18 million), a year-on-year increase of 65.6%. This growth was mainly attributed to the full three-month operational period in the current quarter, compared to only two months in the same period last year.
Additionally, the e-commerce business service revenue was 1.272 billion yuan ($175.5 million), a year-on-year increase of 4.1%. Baozun Inc pointed out that the growth was mainly due to double-digit growth in digital marketing and technology service revenue.
Mr. Vincent Qiu, Chairman and CEO of Baozun, stated, “We are pleased with the solid execution of Baozun Group’s strategic transformation in the first quarter of 2024. The service revenue of the e-commerce sector has recovered and achieved growth, and we have introduced high-quality exclusive general distribution business. Brand management continues to break through in leading the transformation of Gap China, launching many products and marketing activities in the Chinese market, which have received positive market responses. These achievements have strengthened our confidence and determination to drive growth through strategic transformation.”
Baozun Inc also mentioned that in the first quarter, in addition to helping brands open new stores on traditional e-commerce platforms such as Tmall, JD.com, and Vipshop, they also opened more than 20 brand new stores on channels such as Douyin, Dewu, and Xiaohongshu, to help brands generate revenue in new channels.
Furthermore, Baozun Inc is exploring a fully controlled digital distribution business model as the exclusive national agent for multiple international brands. Several brands, such as the well-known Canadian fashion brand ALDO, the renowned American high-end household appliance brand Bissell, and the French beauty and skincare brand NUXE, have made progress in implementation.
