JNBY Group Just Naturally Be Yourself is the Group’s universal brand philosophy, the most influential designer brand and fashion group in China, released its FY21 annual results on August 31. It maintained its leading position in China’s fashion industry with a strong financial performance. Revenue increased 33.1% on year to RMB4.13 billion, while net profit jumped 86.7% to nearly RMB647.2 million.
JNBY’s remarkable recovery from the depths of the Covid-19 pandemic saw its performance surge past pre-pandemic levels. Three main business strategies that strengthen the brand’s unique positioning in the rapidly changing market underscore its continued success.
Dual Driving Factors of “Design” & “Brand”
Since its launch in 1994, JNBY has evolved into a multi-designer brand group, while maintaining the core concept of “Just Naturally Be Yourself.” Currently, JNBY operates eight brands that offer products with distinct brand styles for customers with different fashion tastes. Its brand matrix includes three categories: mature brand JNBY; younger brands CROQUIS; jnby by JNBY, and LESS; and emerging brands POMME DE TERRE, JNBYHOME, and APN73. The main brand, JNBY, is considered the most unique and popular women’s designer brand in China and enjoys high brand awareness according to industry surveys.
Powered by a strong team of talented designers, JNBY explores forward-thinking design and embraces the concept of sustainable fashion and eco-friendly redesign. In FY21, the company also began to re-visualize its offline stores to offer customers a comfortable and unique JNBY-style shopping experience.
JNBY also launched a series of creative branding initiatives. Those include celebrity endorsements, IP co-branding, collaborative design with artists, art exhibitions and DIY workshops. The strategy increased the popularity and recognition of each brand, highlighted the brand’s identity with artistic touch and high-end lifestyle, and demonstrated JNBY’s ability to leverage the power of design and brand reputation.
Multi-Brand Strategy To Achieve Sustainable Growth Momentum
JNBY competes in a relatively niche market segment, maintaining its leading position with its multi-brand advantage. Currently, the mature brand, JNBY, accounts for the majority of the company’s revenue. The younger and emerging brands are growing steadily, with the combined share of total revenue rising from 41.5% to 44.3% from over the past for fiscal years. JNBY’s multi-brand matrix continues to drive overall revenue growth while ensuring sustainable long-term business development.
The company’s global retail network plays another critical role in supporting the large-scale operations of its multi-brand strategy. As of June 30, 2021, the domestic retail network covered more than 400 cities in Mainland China. Retail sales in tier-1 and tier-2 cities accounted for more than half of total sales in FY21. As for its international network, JNBY operates standalone stores in 11 countries and regions and has launched an independent website overseas to increase its international brand influence.
As the business grows, JNBY has implemented an intelligent and rapid-response supply chain system to improve inventory efficiency and operating cash flow. The data-driven system has increased sales by nearly RMB400 million and will continue to support the company’s sustainable growth.
Focus On “Fans Economy” With Omni-Channel Retail Landscape
Members and fans are vital for JNBY’s “fans economy” omni-channel retail strategy. The company has developed a diversified retail model, that integrates brick-and-mortar stores, third-party e-commerce channels, and social platforms by connecting sales, member, and product data. In turn, this helps improve fans’ shopping experience across all channels in real time.
JNBY has more than 4.9 million unique membership accounts as of FY21, making it the industry leader in digital membership strategy. Moreover, JNBY members show high brand loyalty, with their revenue contribution accounting for over 70% of total retail sales in FY21. Members also accounted for more than 40% of offline retail sales, with annual purchases of over RMB5,000.
As a pioneering designer brand group, JNBY has also taken initiatives for leading ESG practices. The company finalized its ESG governance framework in FY21 and aspires to meet its ESG commitments by 2025. It also aims to increase sustainable raw materials sourcing to 30% by 2023, in line with its core concept of sustainable design.
Looking ahead, JNBY will create an international designer incubation platform to nurture more young designers and develop potential new brands. It may also seek M&A opportunities to further increase the group’s growth and market influence. With the core value of “Better Design, Better Life”, the company will commit to providing its fans with joyful design and a “JNBY” lifestyle across fashion, art and creativity.
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