After 16 years of establishment, even if it has become a leading enterprise in wine and beverage distribution channels, 1919 continues to carry out iterative upgrading.
On April 29, 1919 released the performance report for 2021. According to the announcement, 1919 achieved an operating revenue of 4.609 billion yuan last year, a year-on-year increase of 14.66%; The net profit attributable to the shareholders of the listed company was 51.32 million yuan, a year-on-year increase of 118.54%.
Compared with the previous data, it is not difficult to find that this means that 1919 has continuously achieved operating profits since August 2020.
From strategic loss to operational profit, in the face of repeated impact in special period, what did 1919 do right?
profitability improved in the same direction
According to the relevant data disclosed, a number of revenue indicators in 1919 showed a trend of high-quality growth.
In terms of revenue, the operating revenue reached 4.609 billion yuan in 2021, a year-on-year increase of 14.66%; The net profit attributable to the shareholders of the listed company was 51.32 million yuan, a year-on-year increase of 118.54%.
It is also worth mentioning the growth of gross profit margin. According to the data, in 2019, the overall gross profit margin in 1919 was only 5.12%, increased to 11.69% in 2020, and the latest gross profit margin in 2021 was 19.77%, an increase of 14.65 percentage points and 8.08 percentage points respectively over the previous two years.
From the three major sales data, we can see that under the new normal in the special period, the steady development momentum of 1919 also means the upgrading of profitability and welcoming the era of “three growth”!
1919 is not only the continuous improvement of business data, the continuous growth of profitability, but also the further strengthening of endogenous forces. Moreover, the crucial cash flow also achieved rapid growth. The annual report said that the net cash flow from operating activities in 2021 was 715 million yuan, an increase of 1.723 billion yuan or 170.91% over the same period of the previous year. The rapid growth of cash flow confirms the continuous improvement of business in 1919.
The asset liability ratio of 1919 also showed a downward trend year by year, with a decrease of 1.3 percentage points at the end of 2020 compared with the end of 2019 and 10.43 percentage points at the end of 2021 compared with the beginning of the period; The interest cover ratio increased from -1.98 in the previous period to 1.62 in the current period, indicating that the long-term debt repayment and liquidity were gradually enhanced in 1919.
Behind the positive growth of revenue, gross profit and net profit, on the one hand, it shows that 1919 has strong self hematopoietic ability through three years of adjustment, on the other hand, it also shows that the structural adjustment of 1919 has achieved preliminary results.
In addition, in the announcement, 1919 said that the increase in performance in 2021 was mainly due to the increase in commodity sales. It is reported that at present, 1919 has reached stable cooperation with Chinese famous and high-quality liquor enterprises such as Maotai and Wuliangye Yibin Co.Ltd(000858) and international top liquor enterprises such as Pernod Ricard, Diageo and Budweiser. At the same time, it has also accelerated the development of core strategic products according to market demand.
While holding a large number of high-quality brands, the number of stores in 1919 is also growing. The report shows that the number of stores in 1919 has exceeded 2000, including 752 Direct stores and 1361 direct supply stores. The stores are distributed in various provinces, cities and autonomous regions across the country, covering more than 89% of prefecture level cities.
Wuxi Online Offline Communication Information Technology Co.Ltd(300959) run a new rhythm
From the annual performance of 2021, 1919 has entered the process of high-quality development. These achievements are closely related to a series of actions steadily carried out by the enterprise.
1919 said in the annual report that the sales revenue of Direct stores increased by 52% during the reporting period. Among the 752 Direct stores currently owned, nearly 90% of the stores can achieve single store profitability. The average revenue of Direct stores increased by 31% year-on-year. Behind this data change is the basic end of the 1919 direct store model adjustment and the optimization of Direct stores. With the output of a complete store marketing management system based on the model of Direct stores in the future, the profitability of Direct stores in 1919 is bound to further grow.
At the same time, in terms of b-end direct supply stores, the scale of 1919 is also expanding. The number of direct supply stores (franchise stores) has increased by 242 this year, with a sales increase of 245%. It is reported that 1919 has achieved diversification in store types, franchise modes and franchise channels, which can solve the multiple difficulties of novice opening stores in one stop and achieve full coverage in areas above the county level.
Steady progress has been made offline, and the online business of 1919 has been further improved. According to the data, from the perspective of operation scale, 1919 has become the leading vertical e-commerce platform for alcohol in China. Its sales channel not only has its own 1919 food and drink app, but also has opened flagship stores on e-commerce platforms such as tmall, jd.com, pinduoduo and Tiktok, covering local life platforms such as meituan, hungry, jd.com, etc. The sales volume of Jingdong group increased by 162% year-on-year and that of Jingdong group increased by 162% year-on-year in 2021.
In the e-commerce live broadcast business section, in 1919, the official flag of Tiktok launched more than 1000 broadcasts throughout the year, and the annual Gmv exceeded 100million yuan. Relying on the advantages of consumer data analysis, operation system support, commodity quantity and types, store distribution services and so on, 1919 has created a complete set of real-time retail system, successfully broke through the bottleneck of wine live broadcasting, and let itself run a new rhythm on the new track of live e-commerce.
In the “double 11” of tmall last year, the sales of 1919 official flagship store exceeded 200 million yuan, becoming the leading flagship store in liquor and one of the flagship stores in the category of 100 million club stores. In addition to the bright sales data, the delivery service of 1919 also set a new record again. The first order delivery time of 1919 tmall store was only 2 minutes; When the first order of 1919 eating and drinking app was completed, it took only 1 minute and 18 seconds for consumers to place an order. In 1919, the performance service ability of “real wine” and “19 minute express” has been affirmed by many consumers.
Thanks to the 1919 minute online delivery experience of the store, the online and offline delivery rate of orders can be greatly improved, and the 1919 minute online delivery rate of customers can also be significantly improved.
In addition, in terms of innovative models, 1919 also continued to promote the SaaS capability output of derivative businesses, and provided the industry with front-end e-commerce solutions, middle office solutions, unmanned retail solutions, etc. Its big data information operation, live broadcast business promotion, online celebrity incubation, unmanned wine cabinet and other projects have also achieved phased results, and are expected to become a new business growth point in 1919 in the future.
in the future, how to climb the peak again
It has been 16 years since the 1919 brand was founded in Chengdu, Sichuan Province in 2006 and became the leading professional chain company in the liquor industry at that time; Eight years have passed since the nationwide expansion began in 1919, 2014.
In these years of development, 1919 has brought not only model innovation, but also ideological change to the industry, breaking the inherent cognition of the outside world about liquor e-commerce and liquor chain, and improving 1919’s position in the liquor industry.
Especially in the current era of accelerated integration of the Baijiu industry, the increasing degree of market concentration and the more obvious brand effect, 1919 provided a rare transformation opportunity for traditional dealers.
As 1919 said in the announcement, in the future, 1919 will accelerate the layout of b-end direct supply stores (franchise stores), create opportunities for the combined development of traditional dealers and 1919, reduce the traditional multi-level interest chain, bring consumers closer to upstream manufacturers, and bring first-hand market information and data to manufacturers.
Therefore, in 2022, 1919 will continue to optimize and adjust the existing stores. Through a variety of store type combinations of direct supply stores (franchise stores) and flexible store opening policies, 1919 will have a larger offline coverage and better experience.
Under the background of the closure of a large number of tobacco hotels in 2022 and the reduction of dealers’ profits, this development strategy not only fits the reality, but also sets an example for the industry.
In 16 years, the “Online + offline” model created by 1919 has been initially verified. With the clearer growth path of 1919, the continuous expansion of offline stores and the continuous growth of supply chain advantages, a more promising 1919 is coming to the industry with a new attitude.
