Jiawei Yin's questions to Baozun Inc (BZUN) leadership • Q1 2025
Question
Jiawei Yin from CITIC Securities asked for an update on the Gap brand's operational strategy and how Baozun Brand Management (BBM) plans to balance scale expansion with profitability. He also inquired about plans for acquiring new brands and the company's strategy regarding the recent collaboration between RedNote (Xiaohongshu) and Tmall.
Answer
Ken Huang, CEO of Baozun Brand Management, detailed Gap's strategy, focusing on enhancing core product categories, localizing marketing, and expanding channels with a target of 50 new stores in 2025 to achieve scale and reach breakeven in the final quarter. Junhua Wu, Director and Chief Strategy Officer, explained that the RedNote-Tmall 'Red Cat' initiative is a performance marketing tool with a higher ROI than traditional Tmall search, and several brands are already reallocating budgets to it. Chairman and CEO Vincent Qiu added that while Baozun has a strong pipeline for new brand acquisitions, the company is proceeding cautiously given the macroeconomic climate, focusing on building synergies within its portfolio.