The implementation of cross-border OMO services in the Mainland is a pilot that Sasha International focuses on this year. It will continue to use WeChat mini-programs to quickly enrich the product portfolio of China's mainland retail business, accelerate the timetable for launching exclusive agent brands in the Mainland, and provide consumers with comprehensive online and offline services.
On June 30, Sasha International Holdings Co., Ltd. (hereinafter referred to as Sasha International) released its annual financial report as of March 31, 2022.
financial report shows that in the 2021 fiscal year, the company's continued business revenue increased by 12.1% to HK$3.413 billion (approximately RMB 2.913 billion), and its net loss was approximately HK$344 million (approximately RMB 294 million), narrowing from the net loss of HK$351 million (approximately RMB 299 million) in the same period last year.
Mainland China opened 22 stores against the trend and
Same-store sales fell 15.4% year-on-year
From the perspective of stores, in the 2021 fiscal year, the total number of Sasha International stores showed a slightly growing trend, from 232 stores in the 2020 fiscal year to 234. Among them, 3 new stores were opened in Hong Kong and Macao Special Administrative Regions, 18 stores were closed, and the total number of stores dropped from 100 to 85; 22 stores were opened in mainland China and 2 stores were closed, and the total number rose from 57 to 77; Malaysia dropped by 2 to 72.
divided by market turnover, Hong Kong and Macao Special Administrative Regions in China account for 64.9% of the total turnover; mainland China accounts for 9.1%; online business accounts for 20.4%; and Malaysia reaches 5.6%.
, the largest share of Hong Kong and Macao Special Administrative Regions in fiscal year 2021 was HK$2.213 billion (approximately RMB 1.889 billion), slightly higher than HK$2 billion in fiscal year 2020, but it is still a big distance compared with HK$4.739 billion in fiscal year 2019.
It is worth mentioning that compared with the negative growth of 54.4% in fiscal year 2020, the same-store sales of Sasha International stores in Hong Kong and Macao Special Administrative Regions in fiscal year 2021 increased by 16.9%.
In response to this, Sasha International said that due to the relatively ease of the epidemic in the first half of the year, Sasha actively adjusted its product portfolio, launched promotional discounts in a timely manner, and increased epidemic prevention products and other products to stimulate the increase in store sales. Most of the stores closed are located in tourist areas such as Sha Tsim Tsui. Due to the impact of the epidemic, the number of customers has decreased, so the store is closed.
, and the total number of stores operated by Sasha International in mainland China increased by 20, to 77. Among them, 22 stores were opened and 2 closed. Turnover rose 2.0% to HK$312 million, while same-store sales fell 15.4%. The loss increased to HK$144 million this year, resulting from the expansion of operating losses and the significant impairment of physical stores.
"As Sasha International's business in mainland China has been hit by the epidemic many times, some stores have also had to suspend business since the second quarter of this year, and sales are inevitably hit, resulting in the group recording a double-digit year-on-year same-store decline of the same-store from the second quarter." Regarding the decline in same-store sales, Sasha International explained in the announcement.
Online business increased by 38.8% year-on-year
promotes OMO new retail is one of the group's top priorities
Sasha International's online business turnover in this fiscal year was HK$695 million (approximately RMB 593 million), a year-on-year increase of 38.8%, and also increased by 77.5% compared with the 2018 fiscal year. The turnover of online business accounts for the group's total turnover increased from 16.5% last year to 20.4%.
Group's online business team mainly operates online business and cross-border online business in the Hong Kong and Macao Special Administrative Region market, while the group's local online business performance in mainland China and Malaysia is reflected in the performance of their respective markets. If the above-mentioned local online income is included, the total online income accounts for 21.1% of the group's total turnover.
in the Hong Kong and Macao Special Administrative Regions of China, online sales (own channels and third-party platforms) increased by 89.3% year-on-year, accounting for 26.2% of sales of online businesses.
At present, promoting the new retail model of OMO (Online-Merge-Offline) is one of the top priorities of the group. Sasha has made the most obvious progress in the Hong Kong Special Administrative Region this year. In addition to further carrying out "online shopping and store pickup" services, it is also actively launching online and offline interoperable electronic discounts. Beauty consultants can also extend to interact with customers online. These measures allow Sasha to provide customers with a more considerate and personalized omni-channel shopping experience.
In addition, the group cooperates with the third-party platform foodpanda mall to provide a more convenient customer shopping experience. Online cross-border sales imported from mainland China accounted for the highest proportion of the group's online sales, 63.6% this year. In the first half of the year, the "618 Shopping Festival" drove Sasha to perform ideally in mainland China, while during the "Double Eleven" Shopping Festival, the performance in the third quarter was slightly reversed due to the avoidance of excessive price competition.
It is worth noting that in order to cater to the new trend of live broadcast in mainland China, Sasha International began to carry out live broadcasts on the third-party platform Douyin in the second half of the year, and built its own team operation to attract the younger generation of customers.
And Sasha International, which was originally used to reach beauty consultants in China's Hong Kong and Macao Special Administrative Region and mainland customers, continued to achieve ideal results, and expanded to beauty consultants in mainland retail stores, further expanding the online influence of the market, helping complement physical store products and enhance competitiveness.
The mainland's implementation of cross-border OMO services is a pilot that Sasha International focuses on this year. It will continue to use WeChat mini-programs to quickly enrich the product portfolio of China's mainland retail business, accelerate the timetable of launching exclusive agent brands in the mainland, and provide customers with comprehensive online and offline services.
It is reported that this new service only started at the end of last year and has not made much sales contribution so far. However, enriching the product portfolio through cross-border sales to strengthen the group's overall competitiveness in mainland China is conducive to attracting new customers to Sasha's mainland China customer base, improving the repurchase rate and loyalty of existing customers, and increasing the commission income of beauty consultants in mainland China.
In the first quarter from April 1 to June 26, 2022, Sasha International's retail and wholesale turnover continued to decline, down 4.7% from the same period last year. Among them, the retail sales of China's Hong Kong and Macao Special Administrative Region, online business, and mainland China fell by 9.5%, 4.2%, and 16.4% respectively; Malaysia grew by 102.4% against the trend.
"The new crown epidemic has obviously brought great impact to the world, and at the same time it has changed the ecological environment of all walks of life, bringing dangers and opportunities. Sasha has taken diversified reform measures, and has continued to implement rigorous cost and inventory control, expand the foundation of business income and optimized cost structure, so as to help the group survive in a difficult operating environment and gradually move towards a road to profit." Sasha International stated in its financial report that Sasha International is leveraging the advantages of Sasha's professional beauty consulting team and OMO business, accelerate the integration of online and offline operations, create a seamless and considerate omni-channel shopping experience for customers, and drive Sasha to the next stage of development
