Junjie Wei

Junjie Wei asked about the impact of GAP's new top-tier brand ambassador on brand awareness and user profile, including synergistic sales growth in other business lines like children's wear. He also sought Baozun's long-term view on GAP's profit potential and development vision.

Answer

Ken Huang (CFO, Baozun Brand Management) reported a 25% increase in young customers and overall AIPL customer base, with significant UGC content. He noted strengthened brand awareness for key products and observed synergy in kids and baby business, evidenced by increased units per transaction. For future profit, he expects continued double-digit growth for GAP in Q4 (around 20%) and next year, with new store images and accelerated expansion driving improved profitability.

Junjie Wei asked about the impact of GAP signing a top-tier brand ambassador on GAP's brand awareness and user profile, and if there has been any synergistic sales growth in other business lines like children's wear. She also sought the company's long-term view on GAP's profit potential and development vision.

Answer

Ken Huang, CFO of Baozun Brand Management, detailed the positive impact of the GAP brand ambassador campaign, noting a 25% increase in young customers and a significant rise in the overall AIPL customer base, along with increased UGC content and strengthened awareness for key products like denim and sweatshirts. He confirmed synergistic sales growth in the kids and baby business, evidenced by increased units per transaction from family customers. For GAP's future, Huang projected continued double-digit sales growth in Q4 and 2026, driven by the winning marketing formula, new store images, and accelerated store expansion, all contributing to improved profitability, with Q4 expected to be GAP's first break-even quarter.