Baozun Releases 2022 Chairman Letter
On behalf of the Board of Directors and the management team of
Accomplishments in e-Commerce Service
At the beginning of 2022, we stressed that our overall goal was high-quality sustainable business development. To achieve this goal, we continuously focused on customer-centric value creation, business diversification, and cost optimization.
Throughout the year, we helped our partner brands finetune consumer journeys and developed interactive user engagement initiatives, including fan-generation campaigns, AI-based short-video creation tools, game-based interactive social marketing, and business intelligence dashboards to improve decision-making.
Our omni-channel momentum continued, helping brands identify evolving e-commerce trends to enhance resource allocation efficiency in real time. At year-end, 42% of our brand partners engaged with us on an omni-channel basis, and our value-added services revenue stream grew to approximately 50% of revenue by the end of 2022.
By centralizing our operating capabilities, we further optimized costs and increased efficiency. We achieved this by locating more than 60% of our customer service personnel in regional centers, reducing costs and increasing service quality.
Adhering to our motto, “Technology empowers the future success”, our technology and operating platforms serve as a foundation for our broadened scope of services and markets. Our technological edge defines our brand, setting us apart from competitors, and has enabled us to forge a sustainable, symbiotic relationship between physical retail and online commerce.
This year we also launched “Baozun Omni-Channel Digital Operating Platform” or “BOCDOP” to deepen the commercialization of technology and explore new market opportunities. BOCDOP enables multiple channel order fulfillment and delivers powerful omni-channel D2C, data intelligence and decision support functionalities to our brand partners. Clearly, our technology remains the backbone supporting business development and innovations, while also enhancing efficiency and enabling business model innovation to drive additional growth for
Expanded Business Scope
Despite a challenging environment in 2022, our diversified business and optimized costs further enhanced our business resilience, and we were able to generate a record annual operating cash flow of
Baozun Brand Management is a strategic addition that naturally flows from our existing core e-commerce services business. BBM leverages our dominant portfolio of technologies at the service of brands to engage in longer and deeper relationships. We aim to develop into a holistic, all-rounded partner for global brands to further unlock business potential in China. For BBM’s first milestone, we acquired Gap Greater China. We believe the combination of our
We are poised with our expanded business scope. BEC anchors our core business; BBM is our growth focus in the next three years; and, BZI represents a longer-term opportunity that we will continue to explore and improve. With greater business diversification and expanded leadership, we are confident in our roadmap.
Committed to Sustainability
Green development and sustainability are integral to our operating methodology, and positively impact every aspect of our business. We are committed to improving energy efficiency and reducing energy waste in warehousing and logistics parks. Putting our beliefs into action, we have promoted "full chain" green low-carbon operations, built a green e-commerce ecosystem, and cooperated with supply chain partners to explore green procurement, packaging, and transportation for demand fulfillment to create for a sustainable future. We also encourage the active participation of our employees, brand partners, consumers and other stakeholders to promote a sustainable lifestyle while building a green e-commerce system.
Overall, our ability to maintain operations and support our partners’ success during times of macro uncertainty highlights the durability and strength of our business model. As we anticipate a more favorable macro environment in 2023, we are confident that our roadmap and excellent team will drive sustainable results.
Founder, Chairman and Chief Executive Officer
Safe Harbor Statements
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continues,” “ongoing,” “targets,” “guidance,” “going forward,” “looking forward,” “outlook” or other similar expressions. Statements that are not historical facts, including but not limited to statements about Baozun’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to Baozun’s filings with the United States Securities and Exchange Commission and its announcements, notices or other documents published on the website of The Stock Exchange of Hong Kong Limited. All information provided in this announcement is as of the date hereof and is based on assumptions that Baozun believes to be reasonable as of this date, and Baozun undertakes no obligation to update such information, except as required under applicable law.
About Baozun Inc.
Founded in 2007, Baozun Inc. is a leader in brand e-commerce service, brand management, and digital commerce service. It serves more than 400 brands from various industries and sectors around the world, including East and Southeast Asia, Europe and North America.
Baozun Inc. comprises three major business lines -- Baozun e-Commerce (BEC), Baozun Brand Management (BBM) and Baozun International (BZI) and is committed to accelerating high-quality and sustainable growth. Driven by the principle that “Technology Empowers the Future Success”, Baozun’s business lines are devoted to empowering their clients’ business and navigating their new phase of development.
For more information, please visit http://ir.baozun.com.
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Ms. Wendy Sun
Source: Baozun Inc.