2016 - 2021, The First Five Years Of Ubras. In the first five years, the key to Ubras is "no size". With annual sales of over RMB¥1 billion, it has also been the TOP1 in the underwear category for "618" and "Double Eleven". Ubras sells one piece every eight seconds on average, and only five years after its establishment, sales have exceeded the RMB¥1.5 billion. It has gradually occupied the women's underwear market with no size and no wiring vest-style underwear.
With the rise of the "her economy", some women's consumer products have changed. At the same time, brands that convey independence and confidence have increased. What does Ubras do to stand out from the crowd?
Brand History
2016 Ubras launched
2018.08 RMB¥50 million Series A financing led by Capital Today
2019.03 Ubras opened the first offline store in Xintiandi, Shanghai
2019.10 Ou-yang Nana becomes Ubras's first celebrity endorsement
2019.12 RMB ¥170 million Tmall's annual sales
2020.09 Hundreds of millions of B+ financing completed. Sequoia Capital led the investment, followed by Capital Today
2020.11 Double 11 Tmall underwear sales category TOP1
2020.12 RMB ¥1.553 billion Tmall's annual sales
2021.09 Liu Wen becomes Ubras' brand ambassador
01
Position Strategic: To Meet The Needs Of Women In The New Era
The foundation of Ubras' success lies in finding its position strategic: starting from the self-consciousness of women in the new era and then subtracting from the supply chain, it develops a new category of one size underwear. It seizes the entire underwear market with ONE PRODUCT.
In 2018, the market concentration of TOP5 brands in China's underwear was only 6.6%. During the same period, the concentration of TOP5 brands in underwear markets such as Japan, the U.S, and the U.K was 56%, 47%, and 22%, respectively. The large market size and low brand concentration have rapidly enabled many emerging underwear brands to rise and break into the domestic market.
When Ubras was established, it coincided with the climax of the development of China's wireless movement. China's wireless bra market ushered in an explosion in 2017, with a market growth rate approaching 50%. The growth rate of wireless bra consumers of all ages was higher than the growth rate per capita. The wireless movement encourages women to replace wired underwear with wireless one to obtain higher comfort. The essence of this movement is the rise of feminine consciousness and resistance to patriarchal aesthetics.
Established in 2016, Ubras also took the initiative to the enthusiasm of the wireless trend in the hope to take a share in this vigorous women's liberation movement. In the year of its establishment, it released a series of wireless SKUs focused on "zero restraint" and "freedom", such as "Invisible vest-style underwear", "Vest bras", etc. Still, they all came with S/M/L sizes, no way near today's No-Size ethos.
At the same time, China's wireless market had a low degree of brand concentration and did not have a solid top leader. According to Tmall data, the leading brands of China's wireless underwear in 2018 were Uniqlo, Mannifin, and Neiwai. As an emerging brand, Ubras has not yet made the top list.
What really made Ubras famous was that it designed an upgraded version of wireless-sizeless underwear after careful insight into the changes in women's needs, which captured the second half of the wireless movement.
After nearly ten years of market involvement, Chinese women have become more accepting of wireless underwear. At the same time, with the continuous strengthening of the awareness of rights, women pay more and more attention to their own needs and pursue self-consciousness. The emergence of new consumer groups has exacerbated this trend. The post-90s accounted for more than half of the consumers, and the post-95s and post-00s multiplied.
The wireless movement pursues breakthrough and liberation, but women in the new era and even Generation Z consumers need zero restraint and extreme freedom. In terms of values, they hope to express their true feelings freely; in underwear, although the uncomfortable wire has been removed, it still retains a stiff shape. What young consumers need is a "most tender companion".
From the popularity of Bralette in the Chinese market, the trend can also see that young consumers' demand for comfortable underwear is far from being satisfied. Bralette is an upgraded version of wireless underwear. In addition to wireless, it also uses ultra-thin or even no chest pads to make the wearing experience more comfortable. According to Tmall data, the growth rate of this sub-category in 2018 was 172% - an exponential growth after 1995.
Ubras is keen to provide intimate clothing solutions that meet different needs. It realised that materials and experience comfort would become the next iteration of underwear. Ubras launched the "One Size bra" in August 2018, the predecessor of non-size underwear.
Ubras has created size-free underwear through micro-innovation at the product development level.
In terms of formality: Ubras focuses on more inclusive vest-style underwear;
In terms of material: extra soft and high-elastic fabric;
In terms of Technics: abandoning the traditional sewing process that would limit elasticity, using the dispensing and bonding process, and testing by many people. The final result of all these micro-innovations is super comfortable and high-elastic underwear but provides the necessary support.
The brand's main keyword for this bra is "undefined freedom", which coincides with the independent self mentality pursued by young consumers. Moreover, the underwear can also wear as an independent outfit, and it retains a little sexy in addition to comfort, which meets the needs of young women for both comfort and beauty. One SKU that can meet a variety of needs, which significantly expands the coverage of the population. You can reach the target group with one touch, from young girls and professional women to breastfeeding mums. At the same time, it also solves the consumer's choice difficulty to the greatest extent, shortens the decision-making time, and improves purchasing efficiency.
Throughout 2018, Ubras launched more than 20 new SKUs in the fast break, including pajamas, home wear, sportswear, etc., but none of them sold more than the "One Size bras." This bra made of super-elastic materials and thin chest pads was sold out in just 30 minutes on Double Eleven in 2018, with sales of up to 50,000 pieces.
Fitting to the consciousness of the women's needs, finding category opportunities, and breaking through with "size-free underwear" is the first reason for Ubras' success.
02
Streamlines Supply Chain + Consumers Facilitation
The second reason for Ubras' success is that it reformed the supply chain of underwear production. While lowering the technical threshold, it significantly reduced production costs and increased the brand's profit margin. At the same time, it reduces the time for consumers to make purchase decisions.
The two most critical elements in any business are cash flow and profit. The large backlog of clothing inventory is a tremendous burden on cash flow. Therefore, brands need to reduce costs as much as possible, speed up capital turnover efficiency, and increase profit margins. Inventory is especially true in the underwear industry, where there are many SKUs with a low NPD and a relatively low repurchase rate.
Traditional underwear will have around 12-16 sizes. If it has 5-8 colours, a single SPU has nearly a hundred SKUs. The production of traditional underwear usually requires various materials and 40-50 procedures. The degree of automation is low; an assembly line requires about 40 people to cooperate to complete, and even the labour requirements are high at cost. Underwear is designed, sampled, produced and sold to consumers through various channels. The cycle is as short as six months and as long as one year. At the same time, due to lengthy processes and slow iterations, traditional underwear often reacts passively to the market. A large number of products can only be stored in warehouses, resulting in more significant inventory pressure.
The size-free underwear developed by Ubras is an upgrade of the supply chain, which solves the inventory problem from the source. Only one piece of cloth and two chest pads are required for the integrated, seamless underwear, reducing the difficulty of production. It reduces the burden of production and shortens the interval between new updates, and helps brands quickly expand SKUs.
As the size-free underwear reduces the volume of the SKU, this dramatically reduces the pressure on the brand inventory and solves the problem of different sizes and size mismatches when consumers choose underwear. The purpose of "not pressing the chest, not emptying the cup for small chests", "one piece of underwear is suitable for everyone" shortens the decision-making time for consumers.
In addition, due to the substantial reduction in production costs, Ubras can lower the price of non-size underwear, which is lower than traditional bras. At present, the market's price range of mid-to-high-end non-wireless bras is RMB¥200-300, while Ubras's non-size underwear is mainly in the price range of RMB¥120-190; a similar price point with its competitor Neiwai. The price can be more attractive during live streaming and other promotional activities, bringing consumers a higher cost-effective experience.
03
The Birth Of A Billion-Worth Brand Can Not Live Without Marketing
The third key to Ubras' success is to combine the dividends of live eCommerce to amplify traffic and set up a marketing matrix. A successful matrix is also the most direct reason for its sudden emergence after March 2020.
Consumers may be affected by the brand ethos. Still, they also have high expectations for such products and low fault tolerance: once they think the product is "uncomfortable", they will move on to a new brand. But on the other hand, consumers are also particularly loyal to the brands once they fall for them.
As a category, underwear especially emphasises user experience. The underwear size standards produced by various brands are not uniform, and consumers need to go to stores to try them for the correct size. Therefore, the sales of underwear brands are very focused on offline channels. The sales channels of traditional underwear brands are mainly brand direct stores, high-density franchisees and WeChat merchants. They extend their tentacles to every corner of the country by lowering prices and sinking the market crowd. However, the emergence of one size underwear has accelerated the pace of online underwear, and at the same time, opened up a new sales pattern of eCommerce + digital marketing.
Size-free enables not only to order without distinguishing between the brand and the size, but you can also buy it without trying it on. It is very suitable for eCommerce channels and can reach more consumers. At the same time, one size also streamlines the SKU of underwear, and there will be no divergence of traffic due to too many SKUs, which is more convenient for users to make the purchase decision and higher conversion rate.
The enthusiasm of the live streaming in 2020 has allowed Ubras to taste the enormous benefit brought in. Ubras cleverly constructed the live streaming matrix using the top KOLs, celebrities and the store owned live streaming. Join forces to attract traffic and convention quickly.
Ubras' store owned live-streaming started in September 2019. The frequency is among the best in underwear compared to its competitors. It can reach daily streaming when it is most frequent. It also streamed through variants of top KOLs during 2019 Double 11 and Double 12, focused on one size underwear.
Affected by the epidemic in 2020, Ubras' offline channels had been limited. The brand has to place its sales focus on private domains and live-streaming. It successfully achieved the circle by the order placed via live-streaming - scan the code to enter the private domain after receiving the goods - the private domains then channel back to live-streaming.
In addition to live-streaming, Ubras has also launched large-scale campaigns on Weibo, Xiaohongshu, Douyin, and Bilibili. In the traffic structure of the Ubras Tmall flagship store, free traffic within Taobao accounted for more than 50%, and self-visited transactions accounted for more than 46%, which means that the brand's off-site planting grass is very successful.
Weibo targets are mainly targeted at fans of mid-waist KOLs, and the content is mainly based on new product releases in line with the brand. The Douyin launch is primarily about information streams related to the brand ambassador Ou-yang Nana. On Xiaohongshu, it mainly collaborates with mid-waist KOLs, and the content focuses on daily seeding. At the same time, the brand also uses incentives to invite consumers to post on Xiaohongshu, forming a closed-loop of grass seeding with private domains.
Ubras started operating a private domain as early as July 2019 and created the brand IP of UMiao, using the image of a cat to narrow the distance with young consumers. The personal account of the private domain also continues the brand's cartoon IP, using the WeChat personal account "UMiao" to reach users. After receiving the product, the consumers can scan the QR code to add the brand account; they will receive an invitation to post their order in Xiaohongshu. After Xiaohongshu sends product photos and content with designated keywords and #, the reviewers will get a free piece of underwear. The brand personal accounts also frequently announce promotions such as try-on events in the Moments, and there will be a series of event previews and even lead back to the live streaming.
In September 2021, Ubras officially announced that Liu Wen would also be its ambassador. At the same time, it launched a series of themed posters and videos. The advertising content still focuses on "comfort", closely related to Ubras's previous product labels, and reinterpreted with the help of Liu Wen. A new celebrity endorsement will help the brand to break through the existing fan base.
In bricks and mortars, as Ubras's offline store, it is used as an essential scene for brand display and consumer interaction. In March 2019, Ubras opened the country's first offline store in Xintiandi, Shanghai. By now, it has about ten offline stores in first-tier cities such as Beijing, Chongqing and Shanghai.
Ubras can raise during the epidemic; it is inseparable from the multi-channel platform marketing layout: on the one hand, it builds a live streaming matrix through three methods, led by KOLs, celebrity, and store self-broadcasting; on the other hand, form a closed loop of grass-seeding in private domains, Xiaohongshu, establish private domain traffic and increase user loyal.
Brands have also begun to participate in charity projects to enhance their brand image. Ubras has also developed customised products and established a public welfare fund for people who suffer breast cancer. The charity SKUs will continue the "simple and comfortable" spirit of the brand.
Insight from TME Consulting
Brands from 0 to 1 in the Chinese market only need one strength, either in marketing, channel, or supply chain. As long as it achieves extreme of either, a brand will reach its first 100 million sales. But how to go from 1 to n, the test is no longer a single ability, but a comprehensive one, including organizational development, brand power, continuous product innovation, etc. It isn't easy to truly become more prominent and stronger without any of them.
Clear Market Positioning:
Combining market trends, starting from the needs of new generations, finding opportunities for uni-size underwear categories to meet contemporary women's comfort and spiritual needs for underwear.
Systematic Supply Chain
Reduce production and inventory backlog costs on the supply side and quickly expand SKUs in a short time
Strategically Investment In Marketing Matrix
off-site grass seeding, combined with new marketing trends, to occupy the live streaming eCommerce traffic and use the live streaming matrix to increase sales on multiple platforms quickly.
Products
Ubras has four pillars of SKU throughout, namely underwear, bottoming, sportswear, and loungewear. Whether it's underwear or loungewear, Ubras is actively moving closer to the "no-size" trend and will continue to develop more clothing categories around "One Size" in the future
Social Favorability
public opinion mirrors consumers' minds in the era of social media, which cannot be ignored in brand building. Only through the shaping of brand image, the brand can involve in the next level. If a brand wants long-term vitality, focus on the core user group, tell a brand story, and convey brand value. Ubras also needs to further integrate with feminism, hold more campaigns to resonate with women, and achieve the effect of combining quality and effectiveness.
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