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138	138	Baozun has established along the e-commerce value chain a robust logistics network and warehousing capacity to help ensure a smooth and positive shopping experience for consumers of online stores. The company adopt a flexible logistics model supported by its robust and advanced warehouse management system. The company partner with leading nationwide and quality logistics services providers to ensure reliable and timely delivery to over 500 cities across China through their network. The following flowchart illustrates its warehousing and fulfillment process:
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140	140	[[image:https://www.sec.gov/Archives/edgar/data/1625414/000114420417020069/pg41img1_20f.jpg]]
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142		-As of December 31, 2016, the company operate seven warehouses with an aggregate gross floor area of approximately 174,943 square meters in Guangzhou, Suzhou, and Hong Kong. The company's warehouses cater to different product categories. The company provide value-added services to its brand partners, such as anti-counterfeit code protection and tailor-made packaging. In addition, the company also store goods in three other warehouses operated by third parties. With its proprietary warehouse management systems, Baozun is able to closely monitor each step of the fulfillment process from the time a purchase order is confirmed and the product stocked in its warehouses, up to when the product is packaged and picked up by a logistics services provider for delivery to a customer. Shipments from suppliers first arrive at its warehouses. At each warehouse, inventory is bar-coded and tracked through its warehouse management system, allowing real-time monitoring of inventory levels across its network. The company's warehouse management system is specifically designed to support a large volume of inventory turnover. The company's warehouses fulfilled approximately 5.0 million, 10.7 million and 17.8 million orders in 2014, 2015 and 2016, respectively. As of December 31, 2016, its warehouse management processing system was capable of processing 600,000 inbound pieces and 1,100,000 outbound orders per day. During the Singles Day promotion in 2016, its warehouse management processing system processed approximately 4.6 million orders, showcasing its ability to support an enormous flow of transaction and order traffic. The company closely monitor the speed and service quality of the logistics services providers through consumer surveys and feedbacks from consumers to ensure their satisfaction.
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	144	+As of December 31, 2020, the company directly operated 18 warehouses with an aggregate gross floor area of approximately 640,000 square meters in nine cities, including Suzhou, Shenzhen, Tianjin, Guangzhou, Langfang, Chengdu, Wuxi, Jiaxing and Hong Kong, serving end consumers from mainland China, Hong Kong, Macau and Taiwan. The company's directly-operated warehouses fulfilled approximately 41.7 million, 50.4 million and 68.3 million outbound orders to consumers in 2018, 2019 and 2020, respectively. The company's warehouses cater to different product categories. In addition, the company also collaborate with four third-party warehousing service providers and store goods in warehouses operated by them as of December 31, 2020, to better utilize warehouse resources and better serve brand partners’ needs.
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144	144	== Maikefeng ==
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146	146	To extend its product and service offerings to cover the entire product cycle, the company began operation of Maikefeng, its retail online platform, in March 2014, which has grown significantly since then. The company offer authentic, quality products at steeply discounted prices to consumers on its Maikefeng mobile application.
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156	156	== Brand Partners ==
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158		-As of December 31, 2016, the company were providing e-commerce solutions to 133 brand partners primarily under annual or tri-annual service contracts. The company's brand partners cover diverse product categories, including apparel, appliances, electronics, home and furnishings, food and health products, cosmetics, fast moving consumer goods, insurance and automobile.
	161	+As of December 31, 2020, the company provided e-commerce solutions to 266 brand partners primarily under service contracts with a term typically ranging from 12 months to 36 months. The company's brand partners cover diverse product categories, including: apparel and accessories; appliances; electronics; home and furnishings; food and health products; beauty and cosmetics; fast moving consumer goods and mother and baby products; and automobiles. Some of its existing brand partners have had years of cooperation with it and the company generated a significant portion of its net revenue through (i) the sale of products in the stores of these brands the company operate under the distribution model and (ii) provision of its services to these brand partners primarily under the consignment model and service fee model. The company's brand partners and/or their authorized distributors are deemed as its suppliers under the distribution model and its customers under the service fee model and consignment model.
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160		-In response to its brand partners’ needs to leverage its expertise to help them expand their e-commerce business in the Greater China region, Baozun has extended its service and operational capabilities beyond mainland China. The company can now provide brand partners such as Microsoft and Nike end-to-end e-commerce solutions in Hong Kong. The company also got approval from the Investment Commission of Taiwan’s Ministry of Economic Affairs in October 2015 and started to provide brand partners end-to-end e-commerce solutions in Taiwan in April 2016. The company provide IT service, customer service and warehousing and logistics services through local staff on the ground and online store operations and digital marketing through the home team in mainland China. Some of its existing brand partners have had years of cooperation with it and the company generated a significant portion of its net revenue through (i) the sale of products in the stores of these brands operated by it and (ii) provision of its services to these brand partners. See “Item 3. Key Information—D. Risk Factors—Risks Related to The company's Business—If Baozun is unable to retain its existing brand partners, its results of operations could be materially and adversely affected.”
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162	162	== Brand Partner Development and Services ==
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