Ortele has completed nearly 100 million yuan of financing, and China's hard discount chain business is booming
According to the retail circle report, the representative brand of China's hard discount chain aotele recently completed nearly 100 million yuan of a-round financing. In recent years, China's discount retail track has developed vigorously. At present, it can be roughly divided into three categories: hard discount chain (Aldi, aotele, etc.), temporary discount chain (HI special purchase, good special sale, etc.) and brand special sale (vipshop, etc.). In this week's special section, we will mainly take aotele as an example to introduce and analyze the hard discount chain Format: (1) the selling price of goods is generally lower than that of traditional retail channels, SKUs are more streamlined, about 60% of goods come from brand manufacturers, and the rest are private brand and tail goods; (2) Aotele started in Sichuan and Chongqing, expanded along the dense regional route, and adhered to the direct operation; (3) In terms of the location of outlets, priority should be given to the rental cost, followed by the passenger flow. Shopping malls and street stores are all laid out.
Through the comprehensive analysis of representative brands outside China, we believe that the two keys for hard discount chain brands to realize low price discount are "goods" and "market". The first is the commodity side: (1) simplify categories and SKUs, allocate the total purchase amount to a few single products, realize the scale effect and reduce the purchase cost; (2) Build its own brand and reduce the brand premium when purchasing from brands; (3) Shorten the circulation links, cooperate directly with primary dealers or brands, reduce the price increase in the circulation links, and maintain the long-term stability of the supply chain. Secondly, the store side: (1) the location is mostly located in the first floor of the shopping mall and other sections to save the rent cost; (2) The store area is smaller than that of the traditional supermarket, and the decoration style is more simple and practical, which is easy to copy; (3) The staffing is relatively small. Through the development of digitization (self-service cash register, middle desk intelligent system, etc.), we can improve business efficiency and reduce personnel costs. On the whole, discount retail formats such as hard discount chain have gradually emerged as a new force of offline retail in China, with broad development space.
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Plate Market Review
This week (from February 21 to February 25), the retail trade index closed at 293216 points, down 2.96%, 1.83 percentage points lower than the Shanghai Composite Index (down 1.13% this week), ranking 21st among the 31 primary industries. Among the retail segments, the watch and jewelry segment performed better this week, and the watch and jewelry segment has led the increase since the beginning of 2022. In terms of individual stocks, Shanghai Yimin Commercial Group Co.Ltd(600824) (+ 22.5%), Zhe Jiang Dong Ri Limited Company(600113) (+ 20.8%) and Baida Group Co.Ltd(600865) (+ 10.6%) rose ahead this week.
Investment suggestion: pay attention to the leading brands of cosmetics, medical beauty and gold jewelry
Investment main line 1 (cosmetics): continuous verification of large single product + multi-channel logic, focusing on recommending domestic beauty leaders Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , Proya Cosmetics Co.Ltd(603605) , Lushang Health Industry Development Co.Ltd(600223) , and cosmetics raw materials leaders of beneficiary objects Nanjing Cosmos Chemical Co.Ltd(300856) etc;
Investment main line 2 (medical beauty): focus on recommending the leading products of medical beauty Imeik Technology Development Co.Ltd(300896) , the layout of the whole industrial chain Bloomage Biotechnology Corporation Limited(688363) ; Investment main line 3 (gold jewelry): pay attention to the high consumption boom of gold jewelry in the Spring Festival and the increase in the market share of head brands. Focus on Chow Tai Seng Jewellery Company Limited(002867) (multi-faceted empowerment of provincial representative model), and benefit targets such as Chow Tai Fook, Guangdong Chj Industry Co.Ltd(002345) , etc.
Risk tips: macroeconomic risks, repeated epidemics, intensified industry competition, etc.
