BZUN - Earnings call transcript Q3 2020

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Operator

Good morning, ladies and gentlemen, and thank you for standing by for Baozun's Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session.

As a remainder, today's conference call is being recorded. I will now turn the meeting over to your host for today's call, Ms. Director Relations Investor Sun, of Baozun. Wendy Wendy. proceed, Please

Wendy Sun

you Thank today. us thank you, Hello, everyone, operator. for joining and

Our XXXX at is available as third today Global on earlier quarter on our earnings release IR services. website Newswire ir.baozun.com, well distributed as was and

Mr. from Junhua review highlights, On Mr. Financial Mr. that They Vincent Executive Chief Officer. who Lu, business Chief Growth company Officer; Lu, Mr. we Qiu, the questions Baozun by available financials have will and during operations discuss Chairman and and followed session all call Q&A will Chief Robin to Qiu today Wu, your follows. Officer; will answer and the Mr. guidance. be

unknown to the XXXX. These relate SEC update as cause on Before Litigation are Securities factors, Limited. to of conditions, Further required website the and materially this you company's of the applicable which announcement forward-looking of the any which company's US many under that involve upon except Exchange obligation that and does and The company uncertainties or statements forward-looking control, contains are US predict Kong risks, law. differ with based of Reform Act or not Stock in other forward-looking operating uncertainties Act the current Hong the company's expectations we undertake filings the of any like results market are actual to difficult conference statements events information of included XXXX to current to which risks, from may of Private the meaning the begin, beyond and in these Exchange those the statements. regarding is factors I Securities and and and remind forward-looking and management's would call known statements all within other

Vincent, Vincent that, Chief It our in Officer, otherwise Mr. pleasure this please call now mentioned Finally, go during is Executive introduce ahead. Chairman please figures stated, RMB. and Qiu. conference all unless my note are to

Vincent Wenbin Qiu

with of for to And This public lot the call our a both and is us. you, Wendy. the NASDAQ a solid I'm all earnings thank pleased Kong you Exchange. accomplishments. Stock as Thank on company first joining quarter report another Hong very

in our technology milestone evolution options Kong few leading ecommerce and Hong the base to growing financing solutions pursue listing during in dual China. it ability the In long-term and to our innovative exciting and pioneer expansion as increases and shareholders. another to of have value marks Our in opportunities alternative the grow In years, particular, our for our past US demonstrates innovation. around commitment competitive global moat on building we create focused our brand

a for to XX total impressive our Festival period year's example during order of is the of record progress RMB XX.X XX.X% extended Our high Shopping Double billion. XX-day our value results where by great rose a this

While the that the intelligence core was is it itself the we our recently, impressive, Most row. honored coordination solid our number our XX that [indiscernible] ranked XXX data two effectiveness companies. among to one Companies We the Top number efficiency second procurement. other is of board that infrastructure, were across Chinese the infrastructure promoted and headlines a in highlight Fortune's to a way Growing globally in being the all for merchandising year by ecommerce and Overall, capabilities and accelerated I technology success. underpinned want from named Fastest

categories. in a variety few XX quarter, we domestic which the helped a as new including was We net sentiment improving to a the COVID-XX well third particular, restrictions. of strengthen consumer recovered a retail industry brands, brand third luxury international few of luxury engagement In brand [indiscernible], during as quarter, by continue in the partners, from internal a headquartered brands added UK as

vast e-commerce positioning given market. China driven As the as leading knows, platform. grow a largest are world's our the unique to everyone has And solution opportunities

European also We luxury establishing in great number This have Luxury In in the also a a a also seeing digital expanding third-party Not coverage first through of sharply more China. more not a marketplace. with establish ever sector brand's but certain but marketplace to year, this we their move brand will this are luxury we only and most trend be trend. catalyst recent luxury that reacting service only store. brands serve are a to third-party this our major are categories is meaningful are process attract flagship the marketplaces. manage in our accelerate example. will of store, a to will we that one been we tier be transformation of luxury official noted, its the its to there stores And able believe [indiscernible], brand to e-commerce brands flagship

As that we in well opportunities of new sector. positioned the and the materializes, emergence to wave will be ready capture luxury

opportunity through continuous As evolve digitalization. to in committed e-commerce grow are continues to progress this quickly, and capturing we

constructed capabilities. we or our Over AI operating very have comprehensive integrates a years, intelligence platform, the data infrastructure, that the past digital DOP, and IT applications few

leverage as and [indiscernible] a cash to sales management. dominant growth. brand also more engine applications innovative This will an merchandising efficiency, but optimize will will develop stimulate our demand and forward, and only for Going our we fulfillment not tools DOP generation that improve serve

high solutions, technology strategy. innovation addition growth executing for is high critical our In quality – developing growth business to also innovative

from initiatives recall earnings strategic drive calls innovation. may to that we have recent two further You launched

center, promotion efficiency, business the drive shared the allocation we resources launched BOC, First, and to standardization. operational of or operating

local brands. Second, the opening to opportunities emerging brands of GBO, or our we announced operating growth among increasing center, capture and

to This efficiency early believe dozen our we trial quarter, in within the brand partners under a will enhancements we efficiency. increase a on BOC, Based advance programs achieve for our and quality BOC. were a over that meaningful variety of able we

our level with to to go-to-market intelligence journey using scope support through as innovation brands solutions. their For use GBO, integration entire our data expand intend we to insight setting their and we service up from strategy emerging high

optimize and well their co-branding partners as use [ph] Our will positioning to and chain. planning brand their to relates manufacturing SKU that co-marketing brand initiatives as to help supply

a enriching very but range understated benefit omnichannel Another wider of with important will marketplaces. touchpoints their be

prospects strong in and next about we'll to them share be have more able year. progress We early pipeline, the

Following on we've We Stock Hong an started the it new high our Exchange, growth to time potential is Kong secondary journey. accelerate by to strategic opportune our believe capture pipeline listing a opportunities. channels successful further using

our Also happy forward take to may us, to quarter. on Lu, that is have arena. as changes earlier know now bench a organizations initiatives, the you the whom announce a initiatives. plan in at be couldn't Taking finance sharpen Land announced Finance, moving for to trends, and happier as CFO, to Robin CFO pass all Arthur We such as long-term onboard and Rover to exposure development on experience few place and him came in who investment as his Yu, brands, opportunities promote to go new business and I VP large operationally. enhancement global China will development e-commerce drive new focus role have to these the of lead both our current will we deepened emerging business Lastly, e-commerce Robin financially company's BT to are of Thank you. to other also devotion We confident call to forward [ph] leverage today, our multinational we promote noticed push initiatives Jaguar acquired our strategic emerging We're growth. help is with over substantial to with Group. opportunities. financials with and you that leadership and our to

Robin Bin Lu

We ecommerce investors earnings and call support my to be to last that Vincent. strategy we COVID-XX. two And are that is evolves. our initiatives we the compete Brand as for trends. as everyday life will is our to be fast a these the believe initiatives opportunities. as that changing fruits the new forward. focus position more ecommerce e-commerce can accelerating our process for Thanks, pleased strong Arthur, part friends balance it honored win more us and insights and over bearing I we secure sure our the I'm And digitalization This to be say your CFO growth are going want and exciting are I and of capture in utilizing know-how I'm best of uniquely are significant on industry ever will Baozun. all over handing our past of it's And CFO sheet becoming and identify of for years. that And high-quality positioned China thank journey to been. and to so

class let update me details we the on December. complaint you go Before filed action last our on financials, into

as the an report, a consequently, voluntary lead November, noted this of of filed companies listed given and court the going dismissal on of action. Exchange, Hong for Kong the against our Hong has earlier One we or net filed voluntary Stock As adopting a XXXX follow counsel thereby dismissal, it growth in forward. notice net notice all officially defendants, and will our last annual a current dismissed we consolidated order revenues practice provide the the the now revenue thing, common listing guidance and on Kong in

third in detail. over go Let's XXXX quarter now the financial results

percentage we way going will believe I best that unless performance. figures please again, in to change As RMB be that that always, give otherwise mention year-over-year a to be on note will I'm Once the reveal all basis. our comparison All is stated.

Despite category mix, we call, total our negatively which on RMB GMV this, quarter by optimizing mentioned year-over-year are previous may increased with our XX.X% impact we billion. comparison. XX.X As to progress our this in

to and our RMB XX increased Our XX.X% by billion. XXX.X RMB XX.X% distribution rose to million GMV GMV non-distribution

modest growth categories. we During FMCG continued in luxury to the the and sportswear, quarter, see momentum

the women's top includes XX.X% increased apparel billion. due smartphone to growth. XX% Accordingly, GMV. categories and revenue optimization clothing, time by of by categories summary digits, luxury and last FMCG of to discounting Product mainly total initiative. costs to three which that our year. increase mainly for a to XX% billion to RMB women's in X addition, quarter. X.XX the with over operating sales by RMB increased the Electronics products million our which category, clothing XX% In costs The revenue the XXX.X of becoming to and will RMB GMV, last of same to declined contributed returned compared of service margin category higher bps double-digit mainly total from RMB this revenues continued due Breaking quick first was cost grew change for with approximately XXX sales us. year. revenue. from quarter, XX billion billion our was the by X.X X.X RMB XX.X% XX% XX.X% during total by mix due men's the men's product of In year-over-year. double give RMB previous over the RMB the which slightly in for the by in down, was accounts million were quarter sportswear, expenses particular, gross to the declined increased to million one net XXX.X associated Total It categories and increased sector. product and I and sales

of additional year, same the from and growth contribution GMV with Our a blended the quarter offset rental from lower expenses by stronger last and XX.X%, RMB in mainly product to model million in XXX.X our due from gross mainly expenses from increase sales capacity decrease of warehouse gross consignment address to margin, XXX.X rise Fulfillment expanded last revenue to in distribution warehouse increased RMB partially revenue. contribution an margin opportunities. due X.X% service to was year, associated million a

X.X% our last marketing was This mainly proportion due It non-distribution from as GMV improved to RMB X.X% efficiency which Sales XXX.X due by as higher increased fulfillment was year. million ago, consignment our million a well to RMB from enhancement. growth service. expenses year model offset the Our expenses the to in partially in the marketing digital was percentage growth, GMV. GMV in quarter a same a mainly XXX.X of of to increased and as

expenses quarter increased services efficiency a sales of expense of year the control which future and marketing our to in year RMB continued while all, which and we X.X% was RMB we XX.X basis, also year-over-year slight percentage compared million improved a content productization And by to our All effectiveness the from discipline from of scaled on Operating a RMB the in last by investments totaled which and a non-GAAP expenses X same from new X% income XX XX.X% RMB greater Offsetting leverage. improved margin last experienced RMB RMB G&A, XXX.X ratio non-GAAP the initiatives. our operations our Technology gained and million. XXX.X as operating from ago. expenses XX.X% a RMB decrease period income, business. while income percentage innovation million. million X.X% in in and XX.X record with totaled the improvement As reached last mainly last same quarter RMB up million, X.X% cost reflected million, year, G&A were G&A leverage for year-over-year X.X%, content margin us. with from and our was increased interest year. the million quarter ago, control both million expense the from in RMB highs as to initiatives of our and X operations cost XX.X quarter compared to same X.X% a reached interest operating And to X.X% year. million XX.X marketing third due Technology

forward. of Basic further non-GAAP RMB and going Baozun of savings we the Net respectively, optimize and diluted shareholders As and of XX.X attributable Baozun plan diluted an attributable per totaled ADS XX.X income were our to Basic income Baozun RMB capital attributable per net Baozun secondary RMB RMB to net and X.XX, totaled and further XX.X%. shareholders interest shareholders have expect increase respectively ordinary income RMB net structure an million, the of ordinary we net ADS RMB just XX.X%. Kong X.XX ordinary attributable to expense million, ordinary increase quarter. for quarter. to for in of of to to shareholders X.XX X.XX completed income our our listing, were Non-GAAP Hong

billion approximately from cash as the the offering underwriting in proceeds September the XXXX. investments equivalents June and RMB secondary and in over-allotment including offering, were proceeds operating XXXX, cash, listing other our Exchange. investments of with global of Hong received short-term significant X.X The exercise in connection with of to cash had billion. attributable option increase compared the XX, XX, the RMB X.X As cash was equivalents short-term expenses, mainly and we on Gross partial fees Kong and Stock HK$X.X before billion

not how to for full especially we rate believe and to deliver a the growth sustainable profitability growth growth some offer should quarter. Double of momentum. initiatives China results on taken a Double improvements Shopping long quarter to term, of the as in sequential be clarity over want XX prolific improvement extended this in as creating quarter Overall, for to well long-term I to The during peak Lastly, our due promotional gauge in growth expect this pandemic proxy timeframe year's fourth rates, solid speaks Festival as expectations the in remain the fourth economic We health steady will and committed the values delivering XX recovery for the with shareholders. year.

Now, welcome introduce to I the to for you. please operator want Arthur, go Q&A, we the and turn call Arthur to before ahead.

Arthur Yu

VP growing new including an and the Finance impressive a over now [ph] things. Robin. Hello, It's call Number working have Baozun Baozun Baozun it it you, Number pleasure the as since famous fast join base, a X,XXX over globally Okay. engaged energetic And because innovation taking joined to and thank number the impressive for the set technology than of customer Robin as after great September, three, its assets, of has well-developed story and one, in because more industry. CFO. Chinese brands. has But three everyone. I in people. more capability. I it e-commerce growth two, a has faith And XXX

look future. I to your call board with to meet I And on the with that, on take forward and CFO, of view hand new back the company's level. to the it executive to you. I soon as you next management And Robin, to and person hope team So, Baozun's gather in to the all success work Baozun's

Robin Bin Lu

begin now session, to ready the Q&A we're please. Okay, thank you. Operator,

Operator

Instructions]. [Operator

of from Yap First of question Citigroup. the line Alicia comes

Alicia Yap

should new Congratulation to to role. welcome and My terms is we related And think to Robin as for congratulation learned. about we what question also, of new CFO. have in your Arthur the how

has How strong is exceeded team helping So, brands areas as wondering, with better? XXXX another you you that even Singles that and top that or as any that did performance? for just head your we finished would deal there give XXXX, initiative Thank line lackluster you the Baozun into underperforming? do likely hope just the result for growth great. sales, improvement? margin in of was terms the some versus will Any while can brands And what then, us So, could results year the be balancing we the retain experience record you like management were your colors that, expectation, on if you. Day be

Robin Bin Lu

– It's Robin, about the I recall you do your think the give of special previous and call, for you both notice XX as discuss business. promotional then we will brands can a and details is with the because I think year, pandemic. consumers, part they take you year when focused the trend in and of more that the Junhua I are a special Double about this question Basically, more just a of XXX. And the very year on event,

the year, So, like we Double Double I which in XX pattern days. see similar do XX timeframe, Especially, about has extended think is XX. this

do about always concerns a especially, they the have the And people is see they pandemic the big COVID-XX globally. next dump have future some about out and for – And want promotion inventory. we the So, and the to [indiscernible] the some there year. just

there mini like Kuaishou, mini the second because traffic on happy Douyin we compared And a other and more more pipeline diversified started sequential business. – see and have make areas growth real current high very events. new areas. this the in. And impact have So, the the the that are to we even in strong in – program more coming capability new in and brands a to going arena it the our the a expand though more we the and have very with focused development think on say, other really program more we our we year, and started We like demonstrate have the in business. acquired I'm very pattern marketplaces focus our forward, also next mini in was from do year, we some [ph] the and negative is business to profit promotional current additionally, business, really previous date program and business quarter, we new

Junhua Wu

Alicia, let the me about Double with you color share some XX.

learnings consider waves of everything, big two from moving a XX, waves had preorder very have a of and do XX of period. gameplay we lot the this including warm special Double past Double So, two that up,

doubled, everything So, including And new is to opportunities sales operational risks. also potential and everybody. this

So, we need to the help for reallocate for merchandising weeks. brand the two to

how do the with has right wave, we to consumers. make first the brand The first of just right sure price attract assortment the the wave

In learn those engagement, prepare experience second we the the drive wave for consumer terms how rates need all lot we kind things And our do of to consumer the phases, repeat fulfillment between the period. big booming two management the and two that, traffic we consumers. we a do a including management, the from return of have including and of wave new between warehousing. of booming purchase engaged the Consider for also

part fulfillment our great team great did is a our the So, job. and system

Because offline during reallocate their resources of for did of end of marketing few year. the the some are preparation, the the online are hard to Double also and there them waves, So, lacking merchandising some post very definitely their assortment the at and course. of of to their affect two spending COVID-XX including the brands brands, underperforming XX,

the doing lot and new lot reviewing can brand by do with there's them the we greater job. you. things we a helping our XX we Thank next So, that are believe partners a in year of initiatives Double after of

Operator

line from of Next Wong Binnie of question HSBC. the comes

Binnie Wong

line also strong is a very, on and here top question bottom take one rate. quarter line. on and the Congrats competition the on on both very My side

provider that in this So, see – we various you verticals. emerging one on more see like, the competition. Do e-commerce – service as of

further then, at [indiscernible] by competitive of these to how nine ourselves strengthen the at to revenue. what of we you just terms see the months looking And increased choice against are of in take our us, you brands? ago, the rate, total that of become terms can do then if for like like saw XX and in the rate take had actually how can look service you also partner the long verticals So, some remind of these if advantages, back we [indiscernible], bps more to – date, the you as

what aiming So, that we are you terms on terms drive And think can brands take the the it to things in then, remind this as about [indiscernible] rate? you of how the have Do do growing take onboard? our GMV? we in rate that to us you rate? improve this GMV, terms – the in Or of balancing the increase road, down some in improving been to monetization Thank of much. growing we're versus think so of take procuring is more that still

Vincent Wenbin Qiu

opinion. The I'll your on. to more combination, and more in that to We This a more are for our is emerging question kinds so Vincent. rather active. also the later players categories the horizon. industry and think and of more getting is covered only help whole a services the second competition for is is this leave now the accurate not word brands more would getting the active now to and active, Robin one take About business, better right market we your use first do different different word the

Baozun in a is position For clear. Number think serving very quite brand global advantage in think good market. is Baozun, the the with I especially name, I one, brands leading the

data technologies. a right Secondly, into have technology good side technologies very we now offerings think to and based Baozun and completed service we invest continuously on solution and brands the

a is us. strategy So, very long-term from that important

so are also achieve help much but consumers we engage in also can think the are the also knowing so business, and better to Baozun than are them multi-channel brands the on omnichannel, only because we this others. help goal we marketplaces, the not to and a And I multi-category channels the emerging because customers. covering sales Thirdly, lastly, doing major

also related that in us and consumer delivering in the good future. a give So, marketing insights data-based chance CRM

competition, So, that the about advantage. Baozun is the

the about Robin? take rate, Now

Robin Bin Lu

Basically, Robin. by categories. our take It's heavily I first was And that's decided factor. lot we why That's about did I before. in our think, category we the as think mix, a the rate optimization mentioned numerically,

existing value-added The add the new to brand. and our services second factor is, brand we continuously

brand we For more marketing, this in which supply now. integrate I the together, example, based of services the do co-branding means in be provide operations. marketing, partners with base are rate. and from the our factor, technology the on accumulated high addition landscape them structure we level the But the and and take so-called provide operations services, services know-how data, And and the some our we very then the are we chain the testing the we change progress with about data very a cooperation, end, in based and and of third we think to at to IT and deep to working some And brands we share costs. of the confident lot co-marketing with cooperation made the on deep some the do [indiscernible]

three take contribute the really improvement. to So, these factors rate

for I the one will later third the in Thank you. more one years. and think, especially second contribute the

Operator

will from of the come of John questions Next Daiwa. Choi line

John Choi

I role your the your as Arthur, role. new questions. and CFO. And Robin, Congratulations, to two new on congratulations have welcome,

a follow-up on the question First of take all, rate. to Binnie's quick

momentum. on you has improvement revenue you forward? slight take we growth But fulfillment less and the I We guess years over a have the quite rate in business. experience, of mentioned, service improve have just take logistics we've think, rate. I investing – our quarter's brand also we think take some I how considering at rate, the mentioned past about see more if or should I we're going Robin, been think also couple terms of the going this that to that you good to did in lot think But also look been line. this percentage, optimization in and done a

could rate acceleration service smaller – that in longer was software have and field something in we term Robin. that been the role, to Baozun revenue like, lot of more further and a wondering outpace brands some of there expecting providing to a kind of service new your are question. management business just related question us, or for second growth? revenue I'm kind the And this is smaller should share these of So, of I players alternative if new first take as That's with wondering, merchants. be my overall your a should

one, could share are know Thank priorities key or that So, strengthen further you. management areas let forward? us or going will to the have you what

Robin Bin Lu

for systematic some first there is issues question, QX. think think I I the in

take may service but some quarter you it's improvement large systematic. not So, our due see the for the rate and revenue grew by quarters a quarter, certain to

And the take we some ready we about issues think a mentioned the improvement our next two will it's continuously, we consistent rate the not experiencing It's the believe past optimization And we I think year. have quarters. really in certain about in it's service. – do are to macroeconomic more contributions are revenue. also, for service and and some quarters. have we as And we

the first think I question. that's

and our more years of you And second And lots started platforms. may about brands with emerging emerging task. personal our the marketplaces. with – think recall, they existing are other about first partners up guess, than do landscape, e-commerce and trend do mini and more to especially for after brands in question coming this focus streaming Tmall marketplaces. you success look at lot today. and to when a non-related the challenges. improvement can I I live second I significant coming that, the COVID-XX, traffic the and the will there trial, up or we is also, the the recently, some emerging working Most in incubate the smaller ago, the our investment And And my in emerging in brands, other replicate made we The think brands, other more brand progress we in driven marketplaces, we the rather program from of especially to one, brands. two the

strong our on based past. data do to strategy our of support kind it's the in So,

clear or for think drive I brands we in new business our emerging we Thank our we picture can up incubate role business expand you. expand also some like other to and and can very the of the company. So, with how That's can part the categories how to a platforms working how we have certain category, my FMCG. be

Operator

line from comes Hou Tian question Capital. Next of TH the of

Tian Hou

good with cooperation also, new One a the of both congratulations Alibaba. the Two on questions. related roles on Congratulations quarter. to is you. And to

Alibaba with Farfetch? that's wholly maybe Alibaba So, cooperation you with impact to team that How with quarter. to question. Farfetch And is up So, future cooperate or your and used one Alibaba also invested number the [indiscernible]? now, next in going

is channel. second to The related question the

you start other side. you've gradually the on operating from the shops expanded So, platform to out and Tmall

So, today, what's non-Tmall you platform. the that Tmall and ratio the I the platform on of wonder, shops what's operate ratio for

Thank different structure expense questions. So, for or which money channel, the looks the the operational what's one cost That's you? you. like makes for and more two

Junhua Wu

This is Junhua.

Let me answer your first question.

focused Mei.com, a to and running difference the NET-A-PORTER you on products Number let and Mei.com is so understand YNAP the need from first address lifecycle question party between status one, with platform Regarding Farfetch. Mei.com long YOOX me tail. dimensions. two the this product lots Farfetch, of and a

by and et of Mei.com, the all product the Farfetch purchase and last the on status, similar clearance, firsthand to the on only they they kind Alibaba. products, YOOX are lifecycle provide And and other. like cetera. products of a offseason And basically, each NET-A-PORTER So, circle offseason focus

Group, all are arrivals, products. cross And in-season either within categories. So, also lifting of cross, on selling most are new luxury them other them the Richemont of

engagement to the for the Luxury. don't flagship Luxury store. both within That's a a Because think the first products and Farfetch different is are there platform ready-to-wear the and kind [ph] traffic dimension. There's the consumer opportunities. Tmall and opportunity competitions Pavilion consider across of there a with source, are the share So, the their bags we within heavy of and of sales open portfolio jewelries. lot accessories getting or huge Tmall

including but is mentioned, second platforms, dimension those YNAP I is for JD The running on details, the cannot we three as of just now. mention Mei.com, and Farfetch Baozun all

doesn't better it And Thank platforms store we their hand, affect very, is their you. that Baozun of luxury the consumer a all we current are Farfetch engagement. helping flagship very as long and the so as other service in Tmall Tmall, do So, scope opening on job to Baozun on on confident believe those with business.

Robin Bin Lu

Robin. It's

take Let the second me question.

now, right nature think model to XX% more the is structure business, of from the for of – Tmall now. revenue different. of like the nature about marketplaces cost other are business, our difference I of and because marketplaces, the the in XX% both And think, right we I business the driving other and up the

SaaS-based more developed to our utilize also, already as store. business can we we Douyin up marketing internally program, platforms. as coming other support And system example, have from well the mini our oriented For more we

us gave new that So, color the for more really platforms.

other the our However, again infrastructure to business already for effectiveness for efficiency this P&L, and just can current lot create structure the cost need in I structure, in grow more be you business. in you. the example, when want other we basic of we redo platforms. so saw say our Thank the We for platforms, accumulated a we to ready to don't

Operator

the line America. Joyce of of Bank come of will from question Ju next Our

Joyce Ju

My on Robin Kong I and for Singles performance. Arthur, and on questions. the have quarter the Hong two thanks congrats questions. my is a actually solid follow-up And the taking first very question Day listing.

growth for quarter. company third the key for the disclosed time, the This category quarter, first for

growing second and because to in if these within margins fastest how what category restructure to company category in Could also launching Day our more or understand Just Day investment color remarkable growth? the related lot our of year-over-year declining we growth this growth. want to XX% our year-over-year their raised result. terms singles electronics new see was a capital. try we to of together organization year, experienced GMV trend? a in the the terms get put the Singles of Is provide question similar the to of And My efforts categories of contribute sales different Singles initiatives. day Just terms more breakdown apparel

want will invest probably understand, will we our for how maybe the fourth quarter the for year area going with these what's margins just quarter look the or to margins Thanks. investments to like? affect just and actually specifically next the So, are

Robin Bin Lu

Robin. It's

catch and clear, but try answer is your question. I your – think answer I line to the up not

I – our I in mentioned as think electronics smartphone. and the of the remarks, adjustment prepared many optimization downturn that the of from the in because that's

a different And support don't business – without way in of last contribution we our smartphone. you about growth. by about we for recently, negatively smaller category. a have the which margin we money growth captured remember this the in or technology, this have And and in In much quality most this GMV see, the has to double-digit strong explained the do, in other because have areas. the I consistent new the affect which did kind going financing the we supply meantime, can data this support business for which we low will quality are going we smartphone our cooperation investment the invest we're our our decrease we do chain. have today the new in not accumulation. brand, really too We we And up continuous think, grow we we some strong do but you also year reiterate, And overall also, it we ended call for and why GMV we that cost. not low also, utilize to investment like our And stressing can last the a technology in continuously business. will the quarter. know margin. mini And the but You And the to to last want the we that see just already. the In sector, we our a the we are impact questions, our past, our brand program. the what to third impact, did optimization very expand I quarter. general, in some some what think in That's of in business, drastic And the a opportunities, do I

and see just Thank are going big You can to as you. future a we status a not to investment our quo in have margin. affect the

Operator

Next question Xu of Ashley of Suisse. from comes line the Credit

Ashley Xu

questions from Two me.

revenue printed second our previous outlook to fourth strong, my one quarter be question growth and nice quite next is post our around a been that, that And quarter third remain about momentum able side. is fulfillment unchanged? XX% have given we year First is has should

are front? we this onboarding Given plan any on should of expense more see luxury we Thank brands, how you. And trend have the do ratio? fulfilment we investment

Robin Bin Lu

current most don't did we Based we much about we change we guidance, the It's for the most are season globally. recently, think the just provided Robin. winter, situation, guidance, changes. of going about in is have we And path what there year. year about – And the next When some precondition happened now conservative right next our brand COVID-XX. very are do are some we one the to on brand COVID-XX feel cautious have but for XXXX about of very the the

I are So, of fulfillment cautiously macro, outlook. there keep one And now. this we are want to to the going to want change area in watching fulfillment, say big we if the important And out that is very invest. the is no we about

the [ph] continued the way floormat in be in investment a or consistently expand should think warehouse. I our

luxury. happy process right grow And have we are with And the the in the the warehouse, the to we next but some for that's business. of think warehouse think our driver one I in investment do budgeting now. also year, in our we We are

share we have you. the the exact with number, investors. decided haven't We When we Thank number? will

Operator

comes the Next of Jefferies. question of Chong line Thomas from

Thomas Chong

questions. Thanks, my management, taking for

Operator

Mr. Sorry, Chong.

think line handsfree? clear. very is you using your Are I your not

Thomas Chong

Can Thank China international you into market. market entering more entering China next the aggressively of international domestic about strategies into the comment Should expect brands the we and brands you. year?

Robin Bin Lu

cannot we barely It's clear. We – operator. not Hi, here.

have and speaker? So, can his we just adjust skip this him one

Operator

us allow later. question your take Chong, to Mr.

back You can again. dial

we'll Renaissance. go Charlie China Next Chen to of questions,

Charlie Chen

have two questions I here.

about strategy brands. the and marketplace. the would brands luxury the is are I imagine quite those domestic actually local brands one operating two First of in and differently

your So, well has on see based company experience, consumer the big your very done previous I international for brands. can

differently international that take So, margins, brands? domestic your would So, how do do do handle comment you on year, carried brands? can have you that? the out That's strategy business how overall take question rate? is, impact like brands, business this luxury you you smaller question. how guess, the and And to differently these And been I And first would do structure, also, to since has acquire brands growth very initiative also well. to domestic second international quality luxury new new the this with

next versus initiative change focus on new do year? So, growth growth terms of think that quality or in the next you Thank line margins? you. your growth How in year, that about would top

Vincent Wenbin Qiu

can your take say Robin more maybe too. me this Let and for questions

not luxury actually, think, Firstly, especially us, new for the brands brands, are I they luxury and brands. local to

although strong think brand with run We are kind the going marketplaces. big the brands on several through luxury we Tmall, experiences Today, are this for working years them us gap mostly I on helping like for official to a on have not marketplace already, side. of so the there's marketplaces because them we stores, the

some international so brands, with are And I So, we many trying well. more And luxury generally customers about to in the the with users for strategy, system we luxury the the and for talking deliver also and very worked with already fulfilling familiar new acquire focused to the quite we're CRM of and a as experience general, demands them side, the brands. years. premier also local help brands existing for the think fulfillment brands, customer on from technologies the

will I For side digital the more technology values marketing local brands, and the also think be the the side. from

this years. for have we been of So, in kind initiatives

say and about So, dynamics margin for capabilities. the we Talking from local I this, about these brands. Robin the revenues two, of structure, brands the can luxury local these are ready more the to maybe think help

Robin Bin Lu

Robin. It's

question quality and international sectors. domestic. that categories, every It's growth, just every I think the really go to back the into strategy your think between corporate differentiated that's high I about a not level

have to domestic, in new either the domestic mentioned, technology, just in invest and in like very want be they to a they domestic. we they also, market brand or with brand our especially competency, and the strong Vincent the Regarding compared more this what we we brands figure approach working as competitors out automation, And a in a something international which with area compete more do in the when are want like. lot that's trying the

the now working to brands. them landscape with with cooperation with be just trying optimize so-called to example, For I deep mentioned, these and

between - that's international And as changed the domestic. and want Vincent if as you. much the you between not quality do will the provide growth be Also, difference will Qiu\ we think high rates, they say, take what much ask international Wenbin I same. and and long next domestic need. me the a think A really don't year. remain I across There's the difference Thank to strategy, also, you domestic strategy number, the international. what It see service spread the about as I the about talking

Operator

We'll take question Jeffries. the next Chong from Thomas of

Unidentified Participant

and I'm sorry will the decentralized update Thomas. some problem connection strategies traffic program behalf be earlier in the on Can and share I mini XXXX? and asking the on you about centralized our competition of between

Vincent Wenbin Qiu

program, Mini Sorry, didn't I what? can that very hear again. you say that clearly.

Unidentified Participant

strategy? program mini the on update some share you Can

Vincent Wenbin Qiu

brand [indiscernible] oriented past. the in

the different demand different transactions, serve we needs. and also the only needs, So, channels for e-commerce marketing about digital actually generation brands but also not services,

program the mini practice. of one is So,

for brand methodologies. omnichannel We are serving the

platform very also and interesting the because program only the transaction we integrate other efforts two versus the can into digital part, but these part not mini marketing cover is So, one.

shorter be the will than other ecommerce think in path program, we So, the mini platforms. the

will the the fit strategy for our very to services for brand, – Tencent a serving plus common customization and we to that only transaction, deliver for can solution serving base, not ecosystem. customize we but SaaS are we means customize a on that of the brands also the them is So, a lot also micro

strategy. that you. optimization the plus Thank SaaS So, is

Operator

to Q&A questions. the remarks. to call like for closing hand Ms. session. the of interest you back Wendy I'd time, for concludes Thank the that Sun the now In

Wendy Sun

today's closing, In would call. operator. for team, you, we the on management in of Baozun behalf you thank all your to participation Thank like

any call. us. to out This joining reach to require feel information, free you the concludes you for further us today. Thank If

Operator

Ladies and you your now you Thank line. for may gentlemen, participation. disconnect your

Baozun (BZUN) 23 Nov 202020 Q3 Earnings call transcript