Tracy Li: On mute. Yes, come back to the luxury story. I think we need to look to the industry from different angles. In short-term, actually, definitely, the market is facing pressures on the slowing down growth, take this Double 11, for example, many brands have ramped up in variety and intensively of any base to enhance the sales such as deeper discount, interest-free installments and also GMV €“ GWP based. But on the other hand, we see many of our brand partners are investing for the longer €“ middle to longer strategy. Some of them take these 2 years as opportunities to adjust their pricing strategy. They are more focusing on the product innovation itself and also the brands group, the emphasis on the consumer-centric and increase their budgets on content marketing and the data infrastructure.
We see a lot of innovations initiate happening in this Double 11. The leap to and also, you see a lot of limited addition SKUs and online fashion shoes has moving to the live stream topics to continue to drive the sales and also to attract new members. So, I think that is the true size of the factor base currently in the industry. And for Baozun, we still treat luxury as our strategic part of our overall business. Because of the luxury market is still growing, they still have lower penetration, and we see a lot of duties in new pipelines right now. And we in the longer run, I think it’s not just rely on one or two cases. We rooted in, I think over 10 years practice in fashion and then we develop our luxury industry solutions in more forward-looking strategy, which is more omni-channel with leading IT solutions and more consumer driven with a strong in-house sales team and more reliable and value-added service related to logistics solutions.
And with all of this, we have the strong belief to grow with the market in the next 1 year or 2 years. Thank you.
Operator: Thank you. We will take our next question. Our next question comes from the line of Charlie Chen from China Renaissance. Please go ahead. Your line is open.
Charlie Chen: Thanks management for taking my questions again. So, I have one question regarding the launch of BOC, DOP. So, I heard Vincent mentioned that. So, can you share more color about this topic? And how do you think about the cost and the top line contribution for 2023? Thank you.
Vincent Qiu: Thank you for the question. This is Vincent. I will talk about the concept of this is in BOC, DOP, what we call is BOCDOP. In Chinese, we gave you a Chinese name called the its product line or solution. And then Arthur, maybe you can talk more about the revenue of local expectations.
Arthur Yu: Yes.
Vincent Qiu: Yes. Actually, in the past several years, Baozun’s core system, we call this a middle-end system, including all the order fulfillment, other management and processing system and also other fulfillment system. We call this middle end. This middle end or DOP, Digital Operating Platform plays a very important role to support an omni-channel retail and D2C-based business. Because all these traditional ERPs, they don’t have these kind of offerings. I mean China, because of the omni-channel and the online/offline integration is much faster and advanced than the other countries in the market. So, there is a strong demand in the local market for this kind of system. With this system, all the brands can operate their retail and D2C business.
They can open stores on Tmall and JD and WeChat everywhere in the same time. And they can process all the orders from different channels and make sure they can deliver all these orders to their customers. So, that is the system. So, previously, it’s just about the highly customized system for each of the clients Baozun did as the other players. Recently, we put a lot of investment in the packaging and the product types of this solution. But right now, I think the productization level is much higher than before. So, we package this as a solution. It’s more ready to market. So, we are trying to market the solution to Baozun client base and also other new clients and also some medium and small size of the clients trying to help us with them with omni-channel solution strategy.
So, that is the concept of the products. We are seeing very good progress and we are trying to make it better in future, the near future. And Arthur about the revenue, what’s your view on that? Yes.
