Recently, Baozun Inc. (Baozun) announced its financial performance for the fourth quarter and full year of 2023. In the fourth quarter, Baozun’s total net revenue was 2.78 billion yuan ($384.7 million), an increase of 8.9% compared to the previous year. The total net revenue for 2023 was 8.812 billion yuan ($1.22 billion), representing a year-on-year increase of 4.9%. The adjusted operating profit for the e-commerce business was 164 million yuan ($22.67 million). The net loss attributable to common shareholders of the company was 278.4 million yuan ($38.53 million), significantly narrowing the loss compared to 653.3 million yuan ($90.41 million) in 2022.
According to the announcement, omni-channel expansion remains a key focus for the group’s brand partners. As of the end of the fourth quarter, approximately 44.7% of brand partners had cooperation with the group in operating stores through at least two channels, compared to 41.8% in the same period last year.
In 2023, the company’s total sales revenue for products was 3.3572 billion yuan ($464.6 million), compared to 2.6442 billion yuan ($365.9 million) in the 2022 fiscal year. The product sales revenue from e-commerce was 2.0922 billion yuan ($289.5 million), a decrease of 20.9% compared to 2.6442 billion yuan ($365.9 million) in the 2022 fiscal year. The main reasons for the decline were the weak macroeconomic conditions and the company’s optimization of brand portfolio in the distribution model.
In terms of e-commerce product sales, the beauty category recorded 378.2 million yuan ($52.34 million) in 2023, a 21% year-on-year increase and the only category that saw an increase.
Furthermore, Baozun’s service revenue reached 5.4548 billion yuan ($754.9 million) in 2023, a decrease of 5.2% compared to 5.7564 billion yuan in the 2022 fiscal year. This decline was mainly due to a decrease of 202.6 million yuan ($28 million) in warehousing and distribution revenue, as well as the disposal of a loss-making subsidiary in the fourth quarter of 2022.
