With the rise of women's consciousness in the mainland, the female consumer market is growing day by day, especially the scale of the sanitary napkin market, which is closely related to women's physical health, has expanded rapidly. According to the results of the seventh national census released by the National Bureau of Statistics, the national population is 1.411 billion, and the female population is 688 million, of which the "15-59-year-old population" accounts for 63.35% of the total population, and roughly calculated, about 436 million women of appropriate age need to use sanitary napkin products. If it is estimated according to the per capita monthly consumption of 20 yuan sanitary napkin products, the annual sales of the domestic sanitary napkin market can reach 100 billion yuan.
And the seemingly very segmented sanitary napkin market is actually a perfect track - just need, high frequency, high repurchase rate, but also bring good cash flow and gross profit margin, there has been no lack of new brands to join. But the reality is that the Red Sea sanitary napkin market has long been divided, and the competition pattern has been basically established. Under the domestic market penetration rate of nearly 100%, the brand concentration is high, and there is a strong hengqiang posture, A share "sanitary napkin first share" Baiya shares (003006. SZ) in recent years can be seen in the development.
On March 26, the annual report was released, and in 2021, the company achieved revenue of 1.463 billion yuan, an increase of 16.97% over the same period of the previous year; the net profit attributable to the mother was 228 million yuan, an increase of 24.89% year-on-year.
Freedom Point sanitary napkins drive performance growth
In 2020, Baiya Co., Ltd., which landed on the A-share market, is mainly engaged in the research and development, production and sales of disposable personal hygiene products, and its products mainly cover the fields of sanitary napkins, baby diapers, adult incontinence products and so on. The company's performance growth is due to the growth of the industry on the one hand, and on the other hand, it relies on the continuous improvement of the revenue of free point products.
According to the statistics of the Household Paper Professional Committee, the market size of absorbent hygiene products in the mainland reached 121.4 billion yuan in 2020, an increase of 4.2% over 2019. Among them, the market size of women's hygiene products was 61.3 billion yuan, an increase of 7.1 percentage points over 2019; the market size of baby hygiene products was 48.6 billion yuan, a slight decline from 2019; and the market size of adult incontinence products grew rapidly, reaching 11.5 billion yuan, an increase of 22.5% over 2019.
The company mentioned in the annual report that "in 2021, the company's sanitary napkin revenue was 1.184 billion yuan, an increase of 25.04% over the previous year, of which the income of the mid-to-high-end product free point sanitary napkin accounted for more than 95% of the company's sanitary napkin revenue, and the growth of high-end products was one of the main driving forces for the company's performance improvement." ”
According to the data, whether it is the proportion of income contribution or the absolute value of sanitary napkins, it is increasing year by year. From 2019 to 2021, the company's sanitary napkin revenue was 750 million yuan, 947 million yuan and 1.184 billion yuan, accounting for 65.29%, 75.74% and 80.96% of the revenue of each period, respectively.
Production and sales also increased simultaneously. From 2019 to 2021, the company's production of hygiene products was 2.420 billion pieces, 2.962 billion pieces and 3.234 billion pieces, respectively, and in 2020 and 2021, respectively, it increased by 22.41% and 9.16% year-on-year; the sales volume was 2.411 billion pieces, 2.886 billion pieces and 3.357 billion pieces, respectively, and in 2020 and 2021, it increased by 19.71% and 16.34% respectively.
Freedom Point sanitary napkins, source: taken by the author
In order to meet the sales volume, the company has introduced 2 sanitary napkin production lines and intelligent supporting equipment in 2021, and added intelligent supporting equipment to some existing production lines to further expand production capacity. The above-mentioned company source said: "At present, the company's sleeping pants are in full production, the company's capacity utilization rate is sufficient, and the order is stable. ”
At the same time as the annual report was issued, the company also announced that it intends to adjust the remaining 61.9306 million yuan of funds that have not yet been put into use in the IPO fundraising project "Baiya International Industrial Park Upgrading construction project" for "adding new sanitary napkin production lines and adding necessary automation auxiliary equipment" to increase the high-end sanitary napkin market and better improve the efficiency of the use of the raised funds.
It is worth mentioning that the company's high-end products are not only in the sanitary napkin sector. In the diaper sector, Baiya shares have "good" baby diapers and "denim" adult diapers. The company's revenue in the diaper sector last year was 148 million yuan, accounting for 10.41%, a slight decrease of 3.86% year-on-year. Although it fell slightly year-on-year, the company is still optimistic about the sector.
The above-mentioned company person told the titanium media APP: "With the intensification of aging and the increase in the attention of the elderly care industry, the segment of adult care products will have a large space for development; the domestic baby diaper market penetration and market size still have some room for improvement, and the market demand for high-end products is strong." ”
The nationwide layout has brought about an increase in penetration
In fact, in the sanitary napkin market with concentrated head effect and fierce competition, it is not easy to increase the penetration rate of domestic brands represented by Baiya shares.
According to Nielsen data, the total market share of the top five companies such as Hengan in 2020 exceeded 80%. From the perspective of the competitive landscape, there are mainly domestic brands Hengan International (01044. HK) under Seven Degrees Space and Anle, Freedom Point and Nishuang under Baiya Co., Ltd., ABC and Free under Jingxing Jianhu, Jieling and Taotao Oxygen Cotton under Guilin Jieling, etc., as well as sophie under foreign-funded enterprises Such as Younijia, Leerya under Kao, Hushu Bao and Duoduo under Procter & Gamble, and Gao Jiesi under Kimberly. It is understood that at present, the Japanese Sophie and other places occupy a relative advantage in East China, South China and other places, and Hushubao is among the best in many regions in China.
Parallel to the high concentration of the industry is the high penetration rate of the domestic sanitary napkin market. Data show that with the promotion of the rural revitalization plan, the sinking of sales channels and the enhancement of national health awareness, the current market penetration rate of domestic sanitary napkin products has approached 100%. This also means that sanitary napkins are basically competition in the stock market, and the increase of one party is mainly achieved by robbing customers of other brands.
But even so, the penetration rate of domestic brands is still increasing. According to Nielsen data, among the top ten manufacturers in the sales share of the national sanitary napkin category supermarket channel, the market share of local manufacturers continued to increase from 47.5% in 2015 to 48.7% in 2018. Among them, the seven-degree space ranked first in many regions in China, the freedom point ranked first in Chongqing, and the Yunguichuan-Shaanxi ranked second.
How can local brands achieve breakthroughs? Taking Baiya shares as an example, the company is accelerating the pace of nationalization. The above-mentioned company insiders told titanium media APP: "At present, the company's products have entered the Hebei, Shandong, Henan, Anhui, Lianghu, Liangguang and other regional markets. The company attaches great importance to the expansion of the market in external provinces, and further increases the investment in talents and resources in other regions to steadily increase the proportion of sales business in related regions. ”
In terms of regions, the Sichuan-Chongqing region of Baiya Co., Ltd. achieved revenue of 614 million yuan last year, an increase of 15.73% year-on-year, accounting for 42% of the total revenue; the revenue of Yunnan-Guizhou-Shaanxi region and other regions was 336 million yuan and 173 million yuan respectively, with a year-on-year growth rate of 24.91% and 16.37% respectively. Obviously, on the basis of stabilizing the base camp of Sichuan and Chongqing, the layout of other parts of the company is accelerating.
The improvement of brand regional coverage is inseparable from the empowerment of channels. According to the annual report, the revenue of the company's distribution channels, KA channels and e-commerce channels was 857 million yuan, 266 million yuan and 210 million yuan respectively, corresponding to 58.54%, 18.21% and 14.35% respectively, and the year-on-year growth rate was 21.77%, 8.85% and 36.81% respectively. In addition to the demand for e-commerce channel promotion to compress profit margins, the gross profit margins of other channels have shown an increasing trend.
"The 2021 Free Point sanitary napkin maintains an 18% growth rate in the KA channel. KA store as an important channel for the company's brand promotion, in addition to the core area of Sichuan, Chongqing, Guishan, the future of the company's KA channel will cover a wider range of areas, in addition, the company will also strengthen cooperation with high-quality KA retail system, expand KA stores, such as increase cooperation with Wal-Mart, Hema fresh and other stores. The above-mentioned company insiders told Titanium Media APP that with the continuous increase in the proportion of O2O business in the KA system, the company will also actively participate in emerging channels such as live e-commerce, group buying, and O2O to increase product market share.