Image source @ Visual China
Wen 丨 Pencil Road, Author 丨 Lin Sen, Editor 丨 Wu Jinna
After two unsuccessful listings, Shangmei Group, the parent company of beauty giant "Han Shu", is finally one step closer to listing.
Recently, Shangmei Group has submitted an overseas listing application to the CSRC and will go public in Hong Kong, potentially becoming the first beauty company to be listed on Hong Kong stocks in 2022.
The growth history of Shangmei Group is a microcosm of the development history of the local cosmetics industry.
Han Shu is the earliest product of Shangmei Group and the only brand for a long time. Han Shu started from the third and fourth tier markets, and then took the EXPRESS train of TV shopping and quickly accumulated funds. Since then, the micro-business channel has made Han Shu popular, and even been crowned the title of "the first micro-business". The real jump from the third and fourth lines to the first line of Shangmei Group is because of its crazy TV advertising. People who know Han Shu and Yiyezi have probably been "bombarded" by their advertisements. According to relevant media reports, in 2016, the annual advertising investment of Shangmei Group has reached 1.5 billion yuan.
While frantically throwing money into implants, title TV series and variety shows, Shangmei is also not soft in inviting celebrity endorsements, Lin Chiling, Guo Caijie, Naza, Jing Tian, Xie Tingfeng, Lu Han, Wu Yifan, Tong Liya, etc. have all become the spokespersons of Shangmei's products.
After 2019, Shangmei Group began to lay out online, which also allowed it to successfully survive the epidemic. From January to November 2021, Han Shu had about 820 million GMV on Douyin.
Although the results are gorgeous, the Shangmei Group also faces many threats. Established skin care groups such as Baijiling, Galan Group, and Shanghai Jahwa have long grown, and opponents such as Polariya have also gone hand in hand, and latecomers such as Bethany and Yixian E-commerce have also caught up. At the same time, the brands of Shangmei Group are also facing problems such as brand aging and quality questions.
Faced with various problems, can the Shangmei Group go ashore as desired this time? What kind of feedback will the capital market give after the listing? It won't be long before the answer is available.
01, beauty giants rushed to the listing
Following the parent company of "Winona", the emergence of another listed company in the domestic beauty industry may not be far away.
According to the official website of the China Securities Regulatory Commission, The parent company of "Han Shu" and "Yiyezi", Shangmei Group, has submitted an overseas listing application to the CSRC and completed the task of receiving materials on December 31, 2021.
Some media revealed that Shangmei Group will go public in Hong Kong and may become the first beauty company listed on Hong Kong stocks in 2022.
In fact, this is not the first time that The Shanghai American Group has reported the news of listing, it has already taken practical actions.
The two name changes of Shangmei Group have been accompanied by the entry of capital and a strong desire to list. According to public information, Shangmei Group was established in 2002. Before 2015, the company was named "Shanghai Kaka Cosmetics Co., Ltd.", which was later changed to "Shanghai Shangmei Cosmetics Co., Ltd." On December 24, 2020, the company type was changed to "Joint-stock Limited Company". At this point, there is now "Shanghai Shangmei Cosmetics Co., Ltd."
According to the statistics of enterprise investigation, Shangmei Group has only two financings. The first time was in May 2015, the angel round raised 400 million yuan, introducing Lianxin Capital and CITIC Capital, as well as the personal investment of ge Wenyao, former general manager of Shanghai Jahwa. This financing was a sensation and became the largest financing case in the local cosmetics field at that time.
△ Image source: Qi Cha Cha
At that time, Lu Yixiong, founder and CEO of Shangmei Group, said that the company would be listed in 2018. "Lu Yixiong is not short of cash, he wants to go public, listing means that it must be standardized, and there will be more talents and funds after the listing." Ge Wenyao said at that time that Lu Yixiong's purpose of listing.
Although the wish is good, it is difficult to realize. In the following years, the listing of Shangmei Group has not progressed.
The second financing of Shangmei Group is a strategic financing in October 2020, with an amount of 500 million yuan, and the investors are Youngor, Shenzhen Anxin Zhipu, Shanghai Yingfu and so on. Five months later, in March 2021, the news of the listing of Shangmei Group came for the second time.
Unlike the first time when only the slogan was shouted, this time the Shangmei Group really "moved". In February 2021, the official website of the China Securities Regulatory Commission disclosed the basic information form of the counseling filing of Shangmei Group. According to the information, on February 22, Shangmei Group signed a listing counseling agreement with its counseling institution, CITIC Securities Co., Ltd., and officially launched the listing process.
However, the result of this listing operation is still forced to be stranded. In addition, the investors of the angel round, only Ge Wenyao still holds shares indirectly through Shanghai Ximei, and the others have disappeared.
Today, Shangmei Group has finally gone further on the road to listing. However, compared with its peers, Shangmei Group is still much late.
Pleia, which entered the beauty industry at about the same time as Shangmei, was listed on the Shanghai Stock Exchange as early as 2017; Perfect Diary, founded in 2015, its parent company Yixian E-commerce was listed on the New York Stock Exchange in only 4 years; Winona's parent company Bethanie was also successfully listed on the Shenzhen Stock Exchange in March 2021, known as the "first stock of functional skin care products".
Now, looking at the large beauty groups with a certain history in China, the only ones that have not yet been listed may be the Shangmei Group. Without going public to get enough financial support, the "first-line" status of Shangmei Group may be hanging.
02, "the first micro-business" and "Mad Men"
Although it has not been listed, it has grown from a micro-business brand to a domestic head skin care group, and the strength of Shangmei should not be underestimated.
In the official website of Shangmei Group, the company's entrepreneurial journey is divided into two stages, namely the 1.0 era and the 2.0 era. The 1.0 era is 2002-2012, the company focused on expanding the influence of the single brand of "Han Shu"; the 2.0 era is from 2013 to the present, the company has developed a multi-category matrix and carried out a global layout.
At present, in addition to the most well-known "Han Shu" and "One Leaf" brands, Shangmei Group also has a number of brands such as "Flower Fan" and "Cosmetea", and its products cover skin care, masks, high-end washing, maternal and child care, makeup and other categories. Multiple categories have become a major boost to support Shangmei to today.
In addition to the multi-brand layout, the achievement of the United States is also its huge channels, as well as its strong marketing power.
In the early days of the development of Shangmei, it was mainly relied on Han Shu to fight the world. In 2002, when Han Shu was founded, it was the initial stage of domestic local skin care products. Local brands will rub the popularity of Japanese and Korean brands and international big brands to name, Han Shu because of the name was once considered Korean makeup, but it also opened up part of the market for it.
Han Shu's initial sales channel was direct sales. According to media reports, at first, HanShu products mainly attacked third- and fourth-tier cities, and in 2002-2005, they achieved sales revenue of hundreds of millions of yuan, and Hanshu also relied on this to accumulate original capital. Since then, Han Shu has begun to expand channels, such as entering department stores, specialty stores, and TV shopping channels in first- and second-tier cities. However, as a small brand, Han Shu is not very recognized in first- and second-tier cities.
First- and second-tier cities have suffered setbacks, but in the field of TV shopping, Han Shu has become a blockbuster.
Since 2008, Han Shu has appeared on TV shopping channels, especially in some underdeveloped areas. TV shopping is less expensive and efficient. After tasting the sweetness, Han Shu began to operate the TV shopping channel as his important channel. It is reported that in 2010, Han Shu has achieved the first place in the TV shopping industry. At the same time, Han Shu has also extended its tentacles to e-commerce channels, such as platforms such as Taobao. According to some data, in 2013, Han Shu has ranked among the top ten in the Taobao cosmetics rankings.
Han Shu really took off after starting a micro-business in 2014.
In 2014, the rise of micro-business, Han Shu also established a micro-business division. According to reports, Han Shu micro-business once set a record of 40 days of sales exceeding 100 million, and was named the "first micro-business" that year. Han Shu once predicted that its micro-business sales will exceed 1.5 billion yuan in 2015.
However, the real result is to fall into the "pyramid scheme" question, and its sales data is unknown. It was also in these two years that the HanShu brothers brand "Yiyezi" and "Red Baby Elephant" appeared. While enriching the product line, Shangmei Group began to throw money into advertising.
People who know Han Shu and Yiyezi on TV have probably been "bombarded" by their advertisements. "Advertising is not necessarily a brand, and without advertising, it is difficult to make a brand." Lu Yixiong, CEO of Shangmei Group, once said.
In 2015, Shangmei Group named Jiangsu Satellite TV's "Do Not Disturb" program for 500 million yuan, which was called "the largest order in the history of Chinese advertising". At the same time, in many programs of the TV station, the figures of Han Shu and Yiyezi can be seen. It is reported that Han Shu also spent 55 million yuan to title Tianjin Satellite TV "Nothing But You"; spent 58 million yuan to title Oriental Satellite TV "Grandpa with Youth to Travel"; 18 million yuan to sponsor Oriental Satellite TV's "Goddess's New Clothes" and so on. In addition, Lu Yixiong also hit the cinema with advertising, and for 4 years, he launched the national Wanda cinema line offline.
After 2016, Shangmei's advertising has gradually become accurate, mostly for variety shows and TV series. For example, variety shows such as "Every Day Upward", "Mars Intelligence Bureau", "Children of Tomorrow", "This is Street Dance", and popular dramas such as "Three Lives and Three Worlds and Ten Miles of Peach Blossoms", "An Family", "Thirty Only", "In the Name of Family" and so on. According to cosmetics finance online and pinguan network reports, in 2016, the overall advertising scale of Shangmei Group has reached 1.5 billion yuan.
At the same time, please ask celebrities to endorse, Shangmei Group is not soft. It is reported that Lu Han, Wu Yifan, Xie Tingfeng, Zhao Wei, Yang Ying, Tong Liya and other stars have become their spokesmen.
03、 Old Ji Futuo? Or a freshman?
"In 2019, it has increased its online layout, and Shangmei has set up a social retail department, social e-commerce, social live broadcasting, and new retail e-commerce departments, and dug deep into new traffic positions such as Douyin, Xiaohongshu, and live broadcasting." Liu Ming, vice president of Shangmei Group, once said.
The online layout has allowed Shangmei Group to survive the "robbery" of the epidemic and also brought new growth. In 2019, the sales of Hanshu Tmall flagship store increased by 39.54% year-on-year. Shangmei Group executives also mentioned that around February 2020, offline sales fell by 95%, but online channels increased by 107%.
In 2021, the most out-of-the-loop of Shangmei Group is the "Wu Yifan Termination Incident". Due to the first incident of Han Shu, the endorsement cooperation with Wu Yifan was lifted, which directly led to a sharp increase in traffic in the Taobao live broadcast room of Han Shu that night, once as high as millions. At the same time, in the live broadcast room of Han Shu Douyin, "wild consumption" began. Some people have counted that the peak number of online people in Han Shu's live broadcast exceeded 42,000, with sales of 2.96 million yuan and more than 6,000 boxes of masks sold.
At the same time, the products of Shangmei Group are also stationed in the live broadcast room of the head anchor. I have cooperated with Li Jiaqi many times, and the sales volume is even more amazing.
According to other data, from January to November 2021, Han Shu's GMV in Douyin was about 820 million, ranking in the top ten of Douyin beauty GMV.
If you just look at the achievements of the United States, it may be gorgeous enough. However, under the dividends of the times, more than one Shangmei family has grown. Its old and new opponents are already a threat to it.
According to Euromonitor data, in 2020, the top five local cosmetics groups in China are Baijiling Group, Galan Group, Shanghai Jahwa, Shangmei Group and Polaria. At the same time, Yixian E-commerce and Bethany can also be close to the top ten in their subdivision tracks. Among them, the revenue of Polaria in the first half of 2021 increased by 38.53% year-on-year; although the revenue of Shanghai Jahwa declined in 2020, it began to return in 2021, and its revenue in the first half of the year increased by 14.3% year-on-year; Yixian E-commerce increased by 31.80% year-on-year in the first three fiscal quarters of fiscal 2021; Bethany's revenue increased by 49.05% year-on-year in the first three quarters of fiscal 2021.
At the same time, most of these brands are multi-brand strategies, and Shangmei Group does not have an advantage. Shanghai Jahwa has many well-known brands such as Double Sister, Herborist Collection, Liushen, Megajing, Gaofu, Qichu and so on; Garland Group also has brands such as Meisu, Nature Hall, Spring and Summer; In addition to perfect diary, Yixian E-commerce also has brands such as Little Odin, French Colony, EVE LOM and so on; although Polaria has a single brand, its explosive products are emerging one after another, and there are many product lines; Bethany In addition to winona brand, there are skin medical beauty business, as well as deep medical resources.
In addition, cosmetics raw material manufacturers such as Bloomage Bio have also entered the market to compete directly, and their Kwadi, Mibel, Runbaiyan, and BM Muscle Work have occupied a lot of markets. At the same time, overseas groups such as Shiseido, Johnson & Johnson, Procter & Gamble, Unilever, L'Oréal and other overseas groups also have affordable products and Hanshu competing on the same stage.
On the whole, the Shangmei Group has been caught between the front and the back. However, Shangmei Group faces not only these, but also the aging of the brand and the questioning of quality.
Some insiders believe that due to the previous hanshu product positioning and market channel problems, the hanshu user population is mostly in the market outside the first and second lines, too sinking and not young enough. Now, young people have gradually become the main consumer of skin care products, and it may be more difficult for The Brand of Shangmei Group to be accepted by young people than other brands.
Han Shu products have also been punished many times. In 2015, Han Shu was also fined one million yuan for advertising problems; in 2016, 3 batches of products such as Han Shu sunscreen were detected, involving the actual detected ingredients that did not match the product approval and identification; in 2019, a certain mask of Han Shu was detected and added preservatives other than the product label identification. Because of the frequent quality problems of products, Han Shu has also been difficult to get rid of the market positioning of low prices.
Some practitioners mentioned that it may not be difficult for Shangmei Group to go public, but the difficulty is how to adapt to changes in the market and how to impress the hearts of consumers. According to Ai Media Consulting, in 2021, the size of China's cosmetics market will reach 455.3 billion yuan. After the listing of Shangmei Group, it is difficult to predict whether it will be feathered and reborn, or another situation.
Resources:
"Top Stream Wu Yifan is cold, why is Han Shu even more popular?" " good look business
"Rubbing the light of the "Perfect Diary" listing, can the "Han Beam" sprint A-share be smooth sailing? ), Pinecone Finance