Early this year, the outbreak of COVID-19 has put a pause on the development of economy and society. China’s GDP in the first quarter fell by 6.8% year on year, and the total retail sales of consumer goods was 7,858 billion Yuan, down 19.0% year on year. Joyoung Co., Ltd. (002242), the domestic brand advocating for national healthiness and well-being, released its Interim Report for the First Quarter 2020 today. In the reporting period, the Company has achieved operating revenues of 1,702 million Yuan, down 5.37% year on year; net profits attributable to the Company’s shareholder were 147 million Yuan, down 9.91% year on year.
Facing the great challenges imposed by the COVID-19 outbreak, the Company has adjusted its sales strategies promptly. Under the pandemic control regulations, the Company has been actively restoring production and manufacturing and endeavour to mitigate the adverse impact from closed offline stores, cancellation of Spring Festival promotions and low efficiency in logistics and managed to achieve positive domestic growth.
In March, the Company held the first Joyoung Live Shopping Festival campaign. Thousands of offline shopping guides were online at the same time, with a total of more than 20,000 live streaming events held in 7 days. Joyoung’s crossover product in collaboration with LINE FRIENDS, the sandwich maker, was promoted in the Weiya live-stream channel. As soon as the purchase link came out, tens of thousands of machines were sold out. Many consumers commented that the products were sold out so quickly that they were not even able to make the purchase.
To digitalize business operations, users’ networks and scenarios, the Company has been exploring and practising new retailing and live-streaming. It has established a comprehensive live-streaming hosts system consists of celebrities, KOLs (Key Opinion Leader) and KOCs (Key Opinion Customer). With offline shopping guides joining live-stream, the Company is more dedicated than ever to build a one-stop, visible and interactive shopping scenario for consumers.
During this special time, consumers have become more aware of the healthy attributes of household appliances. Top picks very often feature in sterilizing or enhancing immunity. The Company has launched a series of kitchen appliances products that can use high temperature steam for sterilization, such as the Little Magic Cube dishwasher with a bacteria removal rate at 99.9%, soymilk maker and cell wall-breaking high speed blender that are self-cleaning and steam sterilizing, steam rice cooker with liner free of inner-coating that can sterilize milk bottle for baby and steam mop that generates high-temperature steam at 120 degrees Celsius, which can remove 99.9%, which have become very popular among consumers. Shark steam mop has been the best-seller on Tmall in the steam mop category for 10 consecutive months. The products have been well received, and even some models have been sold out.
Driven by momentums in product and channel and oriented by customer demand, the Company will also actively grasp business opportunities in the new economy and live streaming, proactively cater to new customer behaviour and demand, intensively promote digital and social network-reliant new retailing and widely develop new users, attract new fans and establish new channels, through which it will create a new retail operation model customized for its development. The Company will be continued to actively engage in the development of 5G mobile internet, and strive to achieve a comprehensive digital transformation, achieving cross-border operations in different fields such as social e-commerce, on-line live streaming, and O2O new retailing, allowing the seamless integration of brands, products, and users.