Summary of Jiangnan Buyi Conference Call Company Overview - **Company**: Jiangnan Buyi - **Industry**: Fashion Retail Key Points Brand Performance - Jiangnan Buyi's brands show differentiated performance, with the high-end women's brand LESS leading in growth, while the main brand and men's wear also maintain growth [2][3] - Online channels performed exceptionally well, achieving positive growth during the Double Eleven shopping festival due to effective promotional management [2][4] Sales and Revenue - From July 1, the company entered the 2026 fiscal year, with overall revenue growth across all channels and brands between 10% and 15% [3] - The main brand GNB Y has a retail scale of approximately 5 billion RMB in China, while the high-end women's brand LESS has potential in high-tier cities [3][16] Product Strategy - The autumn and winter down jackets are key sales items, noted for their design and cost-effectiveness, with prices around 2000 RMB [6] - The discount strategy remains stable, with seasonal products at over 20% off and past season items at over 50% off [5] Store Expansion - The company has maintained a low single-digit percentage increase in store openings since July, with the JNDY brand adding about 10 new stores [8] - There are currently 22 multi-brand stores across high-tier cities, with annual sales exceeding 10 million RMB per store [18] Supply Chain and Inventory Management - The company has over 300 suppliers, with all bulk production outsourced, ensuring quality through long-term partnerships and a dedicated QCQA team [20] - Inventory turnover is healthy, with a product lifecycle of four years and turnover days well below 200 [12] Financial Outlook - The company plans to invest over 10 billion RMB in a new logistics center over the next 3-4 years, with a clear annual dividend payout ratio of 75% [17][19] - The logistics center will not affect the dividend policy, as the project will be built in phases [19] Market Position and Consumer Insights - The target demographic is middle to high-income consumers who prioritize product innovation and service experience, willing to spend on quality apparel [14][15] - There is a growing interest in local brands over international ones, providing a potential customer base [15] Future Plans - The company is exploring a fast-response ordering system to adapt to real-time sales performance [12] - The newly acquired functional sports children's brand OMEG aims to expand into physical retail, with plans for more stores based on market feedback [18] Design and Brand Management - The design team is stable, with a mix of experienced and young designers, ensuring adaptability to fashion trends [21] - The company manages new and existing brands independently while providing centralized support [22] Market Trends - The company observes that the current consumer environment in China resembles Japan's fourth consumption era, presenting opportunities for personalized and cost-effective fashion [23] Additional Insights - The company emphasizes the importance of maintaining brand strength and product quality through careful selection of distributors and a focus on cash flow management [10][11]