Baozun Inc. (NASDAQ:BZUN) Q2 2023 Earnings Call Transcript

Arthur Yu: Yes. I think I totally agree, Sandrine. Just one more point I would like to add, Andre, is we have been operating as the [indiscernible] partner for Hunter over the last two years. And we know this brand operationally and financially. So, the same as Gap, as a result, you can see, we managed to turn the situation around only after five months. And we have confidence, given the information we know about Hunter to make a significant improvement in the short term given where we are by utilizing the resource and platform and capability of Baozun Group. So that’s why we go ahead to make this deal. And also, this has opened another cooperation model with the ABG Group, who owns more than 50 different brands in China that owns IP. And through that cooperation, we may explore all different venues of cooperation with ABG Group. So that will help us to grow both the BBM and BEC business as well.

Vincent Qiu: Thank you. Some more color from me — from my side, Vincent here, is that for the positioning, we are positioning the premium fashion category. So, no matter Gap or Hunter, it’s totally within this positioning. Secondly, I think it’s going more upstream because Hunter represents co-ownership of IP of brands. And thirdly, I think, as always, we think financial fundamentals or the strength of our financials is very important. So, in the meantime, we will carefully evaluate capabilities. So Hunter decisions made consider all these kind of aspects. So, I think it’s quite mature and solid and a careful selection. Yes, thank you.

Operator: Thank you. And this does conclude the question-and-answer session. I would like to turn the floor to management for any closing comments.

Wendy Sun: Okay. Thank you, operator. On behalf of the Baozun management team, we would like to thank you for your participation in today’s call. If you require any further information, feel free to reach out to us. Thank you for joining us today. This concludes the call.

Operator: Thank you. Now, as mentioned, the conference has concluded. Thank you for attending today’s presentation. You may now disconnect your lines.