Nearly half of Bama Tea's revenue is generated by the increase of franchisee's inventory by 53.33%. Is it to control sales or slow sales?

Recently, Bama Tea Co., Ltd. (hereinafter referred to as "Bama Tea") has made new progress in entering Shenzhen Growth Enterprise Market, and recently updated its prospectus.

Bama Tea is a national chain brand enterprise engaged in all kinds of tea, mainly engaged in R&D, design, standard export and brand retail of tea and related products. Products cover oolong tea, black tea, green tea, white tea, yellow tea, reprocessed tea and other kinds of tea, as well as tea sets, tea food and other related products.

High-end products strive to achieve high income growth.

According to the prospectus, the operating income of Bama Tea Industry in 20 18 -2020 was 7190,000 yuan, 10.22 million yuan and124,700 yuan respectively, and the revenue showed a rapid growth.

From the perspective of specific products, the proportion of tea revenue has remained above 85% all the year round, and the revenue of Oolong Tea and Tieguanyin has remained in the top two positions from 20 18 to 2020.

In 2020, the revenue of Oolong Tea and Tieguanyin will reach 33. 14% and 18.30% respectively, accounting for half of the total revenue.

According to the terminal retail price of products, the characteristics of each kind of tea and its own business needs, Bama tea industry divides the main tea products into three categories: low-end, middle-end and high-end.

In recent years, driven by consumption upgrading, the sales proportion of high-end products of Bama tea industry has increased, taking Tieguanyin as an example. In 2020, the sales volume of Tieguanyin high-end products will reach 28.28%, an increase of 2.56% compared with 20 19.

In terms of unit price, in 20 19 and 2020, the unit price of Tieguanyin increased by 8.66% and 0.85% respectively. In 2020, the unit price of Tieguanyin tea industry in Bama increased by only 0.85%, but the unit price of high-end products increased by 8.75%, the largest increase.

It should be noted that in 2020, compared with 20 19, the sales volume of Tieguanyin mid-range products increased, but the unit price decreased. Usually, in the case of intensified competition, enterprises will try to seize market share by lowering prices.

Increase the income proportion of franchise channels and promote creative joint marketing.

From the perspective of sales model, Bama tea industry is mainly divided into direct selling and joining, and the direct selling model is divided into offline direct selling and online sales.

From the perspective of revenue ratio, franchisees are an important way to generate income for Bama tea industry. From 20 18 to 2020, the sales of offline franchise mode were 293 million yuan, 480 million yuan and 595 million yuan respectively, accounting for 4 1. 12%, 47.44% and 48.07% of the main business income respectively.

The management of franchisees has always been the focus and difficulty of enterprise management. Once an important franchisee changes or violates the franchise contract, it may adversely affect the business performance and brand image of the enterprise.

With the prosperity of e-commerce channels, Bama Tea has also expanded its sales radius through online platforms such as Tmall and JD.COM. From 20 18 to 2020, the sales revenue of Tmall and JD.COM were 9.491.1.9 million yuan, 1.24 billion yuan and 1.83 billion yuan respectively, accounting for 74.87% and 77.87% of the online sales channels respectively.

In China, the market concentration of Internet e-commerce industry is relatively high. Bama Tea chose to open flagship stores on e-commerce platforms with leading market share, such as Tmall and JD.COM, which can quickly cover the main traffic portals of the Internet at a lower cost, thus rapidly expanding its business.

In sales promotion, Bama Tea tried to combine tea with traditional essence culture, boldly tried cross-border integration and spread Chinese excellent traditional culture to young consumers.

Bama Tea once launched a "national treasure" joint-name product-Liufulinmen, which was inspired by elements such as flying fairy, nine-color deer, three-eared rabbit, flying horse, bright moon and algae well in Dunhuang murals. Customize with the official "Do you know that it should be green, fat, red and thin"; Jointly launched deer and tea whales with Chow Tai Fook.

Controlled sales inventory increased by 53.33%

With the rapid growth of revenue, the inventory of Bama tea industry is also rising rapidly.

From 20 18 to 2020, the book value of the inventory of Bama Tea Industry was 1.5 1 100 million yuan, 209 million yuan and 320 million yuan respectively, accounting for 2 1.00%, 20.45% and 25.67% of the revenue respectively.

The book value of 20 19 and 2020 increased by 38.85% and 53.33% respectively over the previous year.

It is worth noting that the growth rate of inventory exceeds the growth rate of total assets and revenue. In 2020, the proportion of inventory in total assets and the proportion of inventory in revenue will increase significantly.

Obviously, the inventory of Bama tea industry mainly includes inventory goods, semi-finished products, packaging materials and turnover materials, issued goods and raw materials, of which the largest proportion is inventory goods.

When the detailed amount of inventory changes, inventory goods are also the most important growth item, contributing more than 60% to the growth.

As for the substantial increase in commodity inventory, Bama Tea believes that there are two main points:

1. With the promotion of brand awareness, the gradual expansion of business scale and the gradual enhancement of comprehensive strength, the scale of necessary inventory goods maintained by the company has increased;

2. The company increased the purchase and storage of Pu 'er tea. On the strategy of Pu 'er tea products, the company will purchase and reserve individual Pu 'er tea products strategically and sell them by controlling the sales volume year by year.

From the explanation of Bama tea industry, an obvious signal "quantity control sales" is transmitted, which is a common way to carry out high-end liquor industry at present.

High-end liquor pursues "luxury" positioning, while Bama Tea tries to imitate the liquor industry and create its own "luxury" tea industry.

Compared with other tea industry peers, the inventory structure of Bama tea industry is different from that of comparable companies in the same industry. Among them, the proportion of raw materials, semi-finished products and in-process products of Bama tea industry is lower than the average level of the same industry, and the proportion of inventory goods and issued goods is higher than the average level of the same industry.

Under normal circumstances, enterprises will reasonably control the structure between raw materials, semi-finished products and finished products according to the growth of sales volume, while Bama Chaze tends to turn raw materials and semi-finished products into inventory goods, which are overstocked in warehouses.

It is worth considering whether this inventory control method is reasonable and whether it will suffer the risk of falling prices.