Release Date: March 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
- Cash and cash equivalents decreased to RMB2.9 billion from RMB3.1 billion a year ago.
- The company faced challenges in the macroeconomic environment, impacting same-store sales growth.
Q & A Highlights
: Have management observed any improvement in consumer consumption sentiment over the past two months, especially with government support measures and promotional activities? What is the expectation for 2025 growth and key drivers?
: Junhua Wu, Co-Founder and Director, noted that consumer sentiment has improved, particularly during recent promotional events like Queen's Day. Categories such as home appliances have seen rapid growth, supported by government subsidies. The company expects continued positive momentum in consumer sentiment. Wu's focus is on optimizing team structures and financial management to enhance profitability and growth.
: Can management update us on Gap China's same-store sales growth and performance of other brands under BBM?
: Ken Huang, CFO of BBM, reported low single-digit same-store sales growth for Gap in Q4 2024. Hunter, although a smaller contributor, experienced over 100% same-store growth. New store expansions in tier-one and tier-two cities have shown promising results, with strong sales per square meter.
: How should Baozun expect the potential influence of changing competitive landscape in the e-commerce sector, especially with changes in merchant policies from platforms like Douyin?
: Junhua Wu explained that Douyin's GMV growth is outpacing other platforms, and Baozun is benefiting from reduced commission rates in categories like fashion and luxury. The company is expanding services on Douyin and integrating traffic across platforms like Tmall and JD to leverage its omnichannel strategy.
: With more consumption stimulus policies rolling out, how should we look at the consumption recovery trend in 2025?
: Junhua Wu stated that while each brand has different strategies, Baozun maintains a positive outlook for 2025, expecting growth in GMV, revenue, and operational profit. The company serves over 400 brands, each with unique expectations and strategies.
: What is Baozun's strategy in the fashion apparel category on JD.com, and how does the company view the rise of AI tools in business applications?
: Junhua Wu highlighted that Baozun will leverage its expertise in fashion apparel to support clients on JD.com. Regarding AI, Baozun is using AI to enhance efficiency and drive growth, with applications in customer service, product management, and internal operations. AI is seen as a key driver for future business improvements.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
