On the evening of October 21, the official website of the China Securities Regulatory Commission showed that Mao Geping Cosmetics Co., Ltd. passed the first listing on the main board of the Shanghai Stock Exchange.
This means that after 5 years of long waiting, Mao Geping finally came to the front of the IPO door, and it is only a matter of time before the bell rings.
However, Mao Geping and his makeup brand do not seem to be as "relaxed" as the outside world thinks.
In 1994, Liu Xiaoqing starred in "Wu Zetian" and invited Mao Geping to serve as a makeup artist. Later, the drama was a big fire, Wu Zetian's style also became popular, and Mao Geping became a "magic makeup artist" and his fame increased greatly.
With the recognition of professional makeup, coupled with good popularity and resources, Mao Geping started a business.
In July 2000, The predecessor of Mao Geping Cosmetics Company, Hangzhou Huidu, was established. In 2015, the company changed its name to Mao Geping Cosmetics Co., Ltd.
At present, the company's prospectus is still stuck in the September 2017 filing.
According to the prospectus, Mao Geping is mainly engaged in the research and development, production, sales and makeup skills training business of makeup and skin care series products, and has two major brands of "MGPIN" and "Love for Life". Among them, MGPIN, named after founder Mao Geping, is the company's core brand, positioning high-end brands, mainly in the department store counter direct operation model, priced at 300-450 yuan; while Zhi'ai Lifelong is mainly based on the distribution model, targeting consumers in second- and third-tier cities, priced at 150-260 yuan.
Graph source network
Let's start with the main revenue. According to the prospectus, from 2014 to the first half of 2017, Mao Geping achieved revenue of 280 million yuan, 321 million yuan, 343 million yuan and 201 million yuan, respectively. Among them, MGPIN revenue accounted for 71.61%, 69.23%, 74.16%, 72.80%, respectively, and the proportion of love lifetime revenue was 17.42%, 16.38%, 11.16%, and 11.31%.
It can be seen that the high-end brand MGPIN is the company's most core asset, accounting for about 70% of the main revenue almost every year.
In addition to the two major brands of "MGPIN" and "Beloved For Life", since 2000, Mao Geping has also set up training institutions in Beijing, Shanghai, Hangzhou, Chengdu, Chongqing and other nine places to carry out makeup skills training business. As of the first half of 2017, it has 9 branches and 8 training schools in nine cities including Beijing, Shanghai and Hangzhou.
From 2014 to the first half of 2017, Mao Geping's makeup training revenue accounted for 9.52%, 12.64%, 12.64%, and 13.64%, respectively, which shows that the proportion of cosmetics training revenue is about 10% or more.
The main battlefield of Mao Geping Cosmetics is offline.
In the early days of entrepreneurship, Mao Ge sat on the cold bench for two years. People in the mall told Mao Geping, "Teacher Mao, celebrities are not equal to famous brands, we want to see the performance, Chinese brands have no sales at all." ”
It was not until 2003, with the help of friends, that the Mao Geping brand was able to enter the Shanghai Grand Gateway Mall and become the only domestic brand in this high-end department store. At that time, the mall had a tail-end elimination system, requiring the brand to enter the base price of 90,000. As a result, the turnover of the Mao Geping brand reached 190,000 in the first month, and in the first year, it won the sales crown of the mall for 9 months.
As of March 2020, Mao Geping has 244 counters across the country, offline channels contribute 70%-80%, and the revenue of online Tmall stores is about 20%.
People are on fire, but the transformation is average
Mao Geping began to notice the line, it was in 2019. This year is a year of rapid rise of domestic makeup brands with the help of digital marketing and e-commerce sales channels, and Mao Geping, who was once known for his film and television works, also became popular in this year because of the makeup technology that can be called "changing heads".
In May 2019, Mao Geping's makeup change video taken in his early years became popular at Station B; in August, the video content of Mao Geping's cooperation with KOL "Late Night Teacher Xu" rushed to Weibo's hot search. Since then, Mao Geping has frequently cooperated with various bloggers, and in May 2020, he entered Station B as a "well-known makeup artist and founder of MAOGEPING brand".
The picture is from @Late Night Teacher Xu Weibo
The first video he released, which lasted more than a minute, announced that he was going to enter Station B, and the avatar was a photo of him endorsing his own products. The young people of Station B also welcomed him, and the video of self-introduction alone was viewed 1.1 million times.
Rows of greetings such as "good teacher" and "send head" brushed the screen - this stem, from Mao Geping's previous cooperation with the fashion blogger "Late Night Hair", under his makeup technique, the blogger is like changing his head.
However, in half a year, Mao Geping gained 677,000 fans in station B. The other two makeup artists who have been called "China's Three Musketeers" - Li Dongtian and Jimmy, Li Dongtian's popularity on the B station is far less than Mao Geping, and Jimmy is not stationed in the B station.
Mao Geping is actively embracing young people. But it is clear that what young people are curious about is his superb makeup skills, not Mao Geping cosmetics.
"Am I missing Mao Geping makeup?" What I lack is Mao Geping's hand. Looking at the discussion about Mao Geping on social media, most netizens have such a voice.
According to media reports, many consumers pay for the Mao Geping series of makeup, but from the market feedback, there are two major problems: low cost performance and not suitable for novices.
From the price point of view, Mao Geping's set makeup powder box is more than 600 yuan, a set of skin care essence set of more than 3,000 yuan, such a price makes many consumers prohibitive.
From a professional point of view, Mao Geping's products are more testing makeup technology, such as its base makeup series of powder pastes that test techniques and techniques, rather than the air cushions that consumers prefer to choose every day, and Mao Geping himself was confused about "why to use air cushions".
Without the corresponding makeup technology, it is difficult to control some of Mao Geping's cosmetics. This has also led many netizens to question the product, believing that "poor powder quality" and "easy to take off makeup". Mao Geping's makeup left Mao Geping's hand, and it seemed that he had lost his "magic".
A consumer told "future consumption" that the reason why he bought Mao Geping was "product + technology", "just like buying the notes of the college entrance examination." If you say on the Internet that Mao Geping is not easy to use, usually others will say that there is a problem with your technique. ”
Lin Qisheng, deputy general manager of marketing of Mao Geping Brand Division, also mentioned that the use of paste products and powder products is still not the same, if you are at the offline counter, the waiter will teach you.
This kind of "professional" and "high-end" has invisibly become a double-edged sword.
As online competition intensifies, Mao Geping's performance is not outstanding compared to a number of makeup brands.
In the research report disclosed by Wanlian Securities, from January to May 2021, the sales of Mao Geping's Tmall flagship store were 102 million yuan, while Huaxizi was 1.39 billion yuan, Perfect Diary was 1.077 billion yuan, and Polaria was 499 million yuan in the same period. Among them, Mao Geping has the highest unit price of 284 yuan, but the corresponding sales volume is also the lowest, at 360,000 pieces.
According to the open source securities research report, in June 2021, in the caliber statistics of the whole network of the makeup tao, Mao Geping did not enter the top 20 of sales, the top three were domestic brands color key, perfect diary and Huaxizi, and Mao Geping's benchmarked makeup brand MAC also ranked 8th.
In addition to June, in the research report of Open Source Securities, in the sales ranking of the whole network of Tao series in July and August 2021, Mao Geping was not seen squeezed into the top 20.
In these three months, only in June, Mao Geping entered the list of Tmall sales rankings once, ranking 17th.
Mao Geping's professional high-end makeup positioning can revitalize what kind of cosmetics business, and whether consumer curiosity can continue to be transformed is still unknown.
The problem left to Mao Geping is obviously more than this one.
In 2016, Mao Geping submitted a prospectus to the Shanghai Stock Exchange for the first time, updated the prospectus in the second half of 2017, and then voluntarily applied for the suspension of the IPO. It was not until the news that the CSRC passed the company's issuance review on November 21 this year that the news of Mao Geping's second IPO entered the public eye.
The proposed listing in 2017 has passed, but the prospectus has exposed Mao Geping's possible "hidden worries".
The prospectus shows that Mao Geping did not build his own production facilities, and the products were mainly processed by entrusting outsourcing factories. During the reporting period, there were five cooperative subcontractors, including Shanghai Zhixin Biotechnology Co., Ltd., Atene Technology (Suzhou Industrial Park) Co., Ltd., Shanghai Dongse Daily Chemical Co., Ltd., Cosmex (China) Cosmetics Co., Ltd., and Shanghai Manuma Cosmetics Co., Ltd.
Checking the official website can be found that as a cosmetics (skin care products, makeup, etc.) OEM/ODM enterprise, the main customers of Shanghai Manuma Cosmetics Co., Ltd. include L'Oréal, Baijieling, Dior, Shiseido, Galan, Nature Hall, Procter & Gamble, Meisu, Kanebao, October Mommy, etc.
In fact, the supervision also pays special attention to the outsourcing model of the production of Mao Geping products.
At the meeting of the NDRC, the members of the NDRC asked Mao Geping to explain "the reasons and rationality of the higher amount of procurement from Alltech Technology and Shanghai Zhixin Biologics, whether there is a significant dependence on specific outsourcing processing manufacturers such as Atenery Technology and Shanghai Zhixin Biology, and whether there is a business risk that the outsourcing processing manufacturers will cancel cooperation; the main differences between Mao Geping's core competitiveness and comparable companies, and the reasons and rationality of gross profit margins higher than those of first-line brands in the case of research and development capabilities and brand awareness are not as good as first-line brands".
Compared with the world's well-known foreign makeup brands, Mao Geping's R&D accounted for a relatively low proportion, from the perspective of R&D expenditure, from 2014 to January to June 2017, Mao Geping's R&D expenses were 2.4469 million yuan, 3.0511 million yuan, 3.4227 million yuan and 1.5717 million yuan, and the revenue accounted for 0.88%, 0.95%, 1% and 0.78% respectively, not more than 1%, compared with the industry average of 3% of revenue, accounting for a relatively low proportion.
In addition, Mao Geping also opened training institutions. Mao Geping divided the qualifications of the main body of training institutions into two categories: schools and sub-branches, of which Six places such as Hangzhou, Shanghai, Chengdu, Chongqing, Shenzhen and Qingdao have sub-branches as the main body, and Beijing, Zhengzhou and Wuhan have schools as the main body.
As of the date of signing of the prospectus in September 2017, the training business with sub-branches as the main body has been included in the financial statements, while the training schools with the school as the main body are "non-profit" and are not included in the scope of the consolidated financial statements. In this regard, Mao Geping explained in the prospectus that it is because the requirements for training business entities are different in different places.
In this regard, the NDRC asked Mao Geping to explain, "Whether the makeup training business falls within the scope of vocational training, whether the training branches that have not obtained the school running license have obtained the administrative license or registration of the local human resources and social security department, whether the training teachers have obtained the teacher qualifications or other qualifications stipulated by the supervisor, whether the school buildings, facilities and equipment meet the national and local safety standards; and the reasons and rationality of opening (establishing) schools and subsidiaries (branches) at the same time in the same city; and whether there is a compulsory, There are situations in which trainees are induced to use consumer loans or purchase company products, and whether there are situations such as forcing or inducing trainees or consumers to use 'beauty loans'."
The prospectus also revealed that Mao Geping not only did not attach importance to research and development, but also did not pay much attention to marketing. From 2014 to 2016, Mao Geping's advertising expenses and business publicity expenses were 11.3271 million yuan, 11.4296 million yuan and 14.4125 million yuan, respectively. In 2016, the company's operating income was 342 million yuan, and advertising accounted for about 4% of revenue.
Mao Geping also recognized the shortcomings, and his prospectus said that the marketing of the company's makeup brands in fields such as outdoor hard broadcasting, television media and Internet media still has a lot of room for improvement, and it needs funds to invest in marketing to make up for the current gap with international first-line makeup brands in terms of brand awareness and influence.
In this IPO, Mao Geping intends to issue no more than 20 million shares, and intends to raise nearly 512 million yuan, of which 229 million yuan will be used for channel construction projects, 71.5842 million yuan for R&D center construction projects, 60.9468 million yuan for image design training institution construction projects, and the remaining 150 million yuan for supplementary working capital.
However, the moat can not be built in a day, and Mao Geping's listing road is still full of uncertainty. In the future, where Mao Geping's IPO road will go, it remains time to answer.
Reference:
1. Chief character view: Mao Geping, who made up "Wu Zetian" 26 years ago, how did he catch fire in Station B again?
2, Red Breeze Saburo: Girls have "sent their heads" mao Geping, becoming the "first share of A-share makeup"
3, the future of consumer APP: waiting for the listing of these five years, Mao Geping learned to earn money for young people
4, 21st Century Business Herald: After waiting for 5 years, "Mao Geping" finally passed! A share "national tide makeup first stock" is coming?