Baozun Releases 2020 Chairman Letter
Thank you for your continuing support and confidence in Baozun’s people and leadership.
Demonstrating resilience, flexibility and commitment
The Covid-19 pandemic made 2020 a year of challenge and uncertainty. However, we have been able to offer seamless and uninterrupted, quality services to our brand partners. I am deeply proud of the tenacity and flexibility our organization displayed during the pandemic.
In fact, the pandemic to some degree helped to shift consumer behavior from offline to online channels. Not only does
Rooted in our vision of “Technology empowers future success,” we were able to develop systematic, technology-driven business contingency plans as well as innovative tactical solutions to help our brand partners weather the impact of the pandemic, and seize the opportunities of the rapidly evolving e-commerce environment. We have seen our brand partners both achieve success and accelerate their digital transformation. As the leading service partner in brand e-commerce, we believe
2020: A year of high-quality growth
We prioritized a strategy of high-quality growth throughout 2020. During the year, we optimized our brand portfolio to allocate resources, identified new categories to promote topline growth, and improved operating efficiency by reengineering our processes and streamlining operations.
Digitalization and innovation will continue to play a vital part as we expand our competitive moat. In 2020, our dual focus on innovation and productization was the driver for seamless integration, digitalization and intelligence of our services. We were pleased to see significant progress in our Retail Operation Support System, or ROSS, automation application, in launching a rich portfolio of one-click toolkits, and its integration into consolidated operations, driving overall operational efficiency and optimizing business process reengineering.
Over the past few years, we have constructed a comprehensive Digital Operating Platform, or DOP, that integrates our IT infrastructure, AI applications and data intelligence capabilities. As a third-party service provider, our infrastructure and unrivalled technology uniquely position us to help brand partners execute comprehensive omni-channel strategies and we are particularly pleased with our progress during the year. For the first time, our non-Tmall channels accounted for over 25% of total annual GMV, of which non-official.com GMV surpassed 10% for the first time. We have seen the rapid growth of new and emerging channels and believe such channels have the potential to be among our future growth drivers.
These efforts translated into a number of records in 2020. We generated
Overall, 2020 was a remarkable year for
Strategic focus for 2021 and beyond
We are continuing our commitment to a high growth strategy for sustainable and profitable growth in 2021 and beyond. To capitalize on the expanding
The three key pillars of the strategic plan are:
First, we will adopt a “customer-first” approach to drive growth by focusing on service differentiation to meet the diversified needs of our brand partners. We will explore business opportunities and implement customer segmentation strategies to attract potential new business from both existing and new brand partners.
Secondly, we will drive growth through the expansion of new businesses. We believe that as e-commerce in
Thirdly, we will seek even greater optimization of our cost structure, through technology driven business process reengineering and service-quality-oriented location strategy.
Overall, we will bear in mind our long-term objective – delivering sustainable and profitable growth for our shareholders. We view 2021 as a unique year full of opportunities, and a year in which we will invest for our future. We will actively look for opportunities in new channels, new categories and new business models along with other opportunities to generate synergies with our current business, both organically and inorganically. We will continue to enhance our infrastructure enablers, including technology, digital marketing and warehouse and logistics, to further strengthen our competitive advantage.
We will also put more emphasis on environmental, social and governance initiatives, and I personally chair our recently established sustainability committee to support our growth from a long-term and sustainable perspective. In addition, “delivering quality through developing people” is rooted in our culture and values. “Delivering quality” deepens our value proposition to brand partners, while “developing people” ensures our
Finally, I would like to thank you again – our shareholders – for your long-term interest and support. We remain committed to our vision of “Technology empowers future success” and will continue to pursue our journey of sustainable and profitable growth through disruptive innovation. We are more motivated than ever and will continue to work hard for you. We are excited about the opportunities ahead and expect to have a tremendous 2021 with your help.
Chairman and Chief Executive Officer
Safe Harbor Statements
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
For more information, please visit http://ir.baozun.com.
For investor and media inquiries, please contact: