Secoo declines, but keeps promise of Hainan in sight
After announcing plans to open 300-plus physical spaces across China last summer, Beijing-based luxury retailer Secoo has announced its unaudited results for the first half of 2021 (ie, the six months that ended June 30, 2021).
Notably, sales revenue, number of orders placed and the retailer’s total number of active customers were all down on the previous year.
Revenues dropped 34% year on year to $236.3 million or ¥1.53 billion, while year-on-year order numbers fell from 1.75 million to 1.44 million. This was all bound up with a decline of almost 90,000 active customers from just under 570,000 at the beginning of the six-month period.
Company chairman and chief executive, Richard Rixue Li, attributed the business’ apparent downturn to “a challenging macro environment” and positively described Secoo’s integrated online-offline platform as “increasingly favoured by a large, active and engaged audience”.
Mr Li said that Secoo remains fully committed to its business model and growth strategy, with increased product diversification, improved international brand relationships, a strengthened global supply chain system and heightened “technological empowerment” for both brands and customers all on the cards moving forward.
Meanwhile, the firm’s chief financial officer, Shaojun Chen, stated that Secoo’s objective would be to “continue balancing profitability by increasing operating efficiency while honing our suite of luxury selections”. He added that the aim was to deepen its level of influence as a luxury player in both China and abroad.
The company’s financial statement further indicated its clear drive to strategically position its business in way that might allow it to better benefit from the “tremendous opportunities” presented by Hainan’s relatively recent emergence as a leading duty-free shopping destination.
Image: Secoo.
