On the evening of March 29, 2022, Blue Moon Group (06993.HK) released its 2021 performance report. The good performance led to a sharp rise in the stock price, and as of press time, blue moon group shares rose more than 13% intraday.
According to the report, Blue Moon Group's operating income in 2021 reached HK$7.597 billion and net profit reached HK$1.014 billion. Among them, laundry cleaning and care, as the Group's main business, has an annual revenue of HK$6.457 billion, and its leading edge continues to expand. At the same time, Blue Moon continues to expand its sales and distribution channels, further improving its omni-channel strategy. The leading edge of online channels has been further consolidated, and the offline channel has benefited from the effectiveness of channel reform, with significant growth, with offline distributor channel sales increasing by more than 50% year-on-year in the second half of 2021, and offline distributor channel revenue rising by about 22.0% throughout the year. In addition, Blue Moon also actively carries out business through the O2O platform, expands the customer base and seizes new business opportunities, and the offline O2O model has become a boost for offline business. According to the financial report, blue moon has climbed to the first line in the ranking of O2O platforms such as Jingdong Dajia and Meituan Flash Sale in 2021.
For its performance, industry insiders believe that under the challenging external environment and the pressure of rapid conversion of consumer market demand, Blue Moon's performance is in line with market expectations, showing strong pressure resistance and rapid response ability. The person also pointed out that thanks to its leading experience in the research and development and promotion of new products, the remarkable results of the superimposed channel reform have opened up new market incremental space for it. At the same time, with its industry-leading forward-looking strategic deployment, including consumer demand insight capabilities, product innovation and research and development capabilities, it will help it maintain long-term high-quality development in a multi-faceted way.
Category innovation strengthens the product matrix, and the strategic advantages of experts are highlighted
Based on the expert strategy, Blue Moon has always been guided by consumers' needs for product application scenarios and application experiences, continuously iteratively upgraded products, and continuously improved a full set of home cleaning solutions, laying a good foundation for the company's long-term development and steady growth.
Up to now, Blue Moon products cover three categories of laundry cleaning care, personal cleaning care and home cleaning care, with a total of more than 80 SKUs.
In 2021, Blue Moon has successively launched a series of care products such as automatic mobile phone washing, hand sanitizer and antibacterial hand sanitizer, and improved the product layout of the handwashing series. At the same time, based on the rising demand of consumers for the performance of sterilization of washing products, a series of clean new products including Blue Moon Supreme Biotechnology Sterilization deodorant detergent, sterilization deodorant detergent and so on have been launched. In terms of home cleaning and care business, Blue Moon launched new cleaning products for different household appliances, and improved the household disinfection series of products, further expanding and improving the product matrix and enhancing competitiveness.
It is worth mentioning that the underwear special laundry detergent and sterilization and deodorant laundry detergent have gained market favor as soon as they were launched. Among them, the underwear special laundry detergent in the "Double 11" period of the Tmall platform once topped the underwear laundry detergent pre-sale list, in the Jingdong platform, the laundry detergent became the only one among the Jingdong meticulous maintenance of healthy life trend list of laundry detergent, once again verified the Blue Moon's accurate insight into consumers.
Channel reform has achieved remarkable results Product penetration has continued to strengthen
In 2021, Blue Moon further deepened its omni-channel strategy. Through the optimization of traditional channels, intensive cultivation of mainstream e-commerce channels, active layout of emerging channels, and continuous consolidation of omni-channel distribution networks, etc., we will fully grasp the dividends brought by channel reform.
According to the financial report, in 2021, blue moon online channels achieved revenue of HK$3.806 billion, maintaining benign development. Offline channel reform has achieved remarkable results, of which offline distributors are particularly effective, and the revenue of distributors in the second half of 2021 increased by more than 50% year-on-year. At present, the structure of online and offline channels tends to be balanced, which will further help the steady growth of performance.
In fact, Blue Moon has always adhered to the "consumer as the core", continuously improved the channel system, integrated online and offline resources, and actively explored and laid out omni-channel reforms.
As early as 2012, Blue Moon began to actively layout various e-commerce channels, reached cooperation with Tmall, JD.com and other platforms, successfully seized the opportunity for online development, and maintained a leading sales volume for many years. Not only that, with the rise of emerging e-commerce platforms, Blue Moon actively embraces new changes, lays out online live broadcast platforms (including Douyin and Kuaishou), and focuses on the use of self-operated accounts for sales and marketing activities to promote sales growth. At the same time, we will continue to consolidate our business on major fresh e-commerce platforms, including Dingdong Grocery Shopping, Daily Excellent Fresh and Pupu Fresh, etc., and establish market dominance.
Offline, Blue Moon continues to expand and deepen the penetration of sales and distributor channels in China, and has now expanded its distribution network to convenience stores, fresh food supermarkets and small and medium-sized local stores. At the same time, through the continuous improvement of the distribution management system, the distribution channels are classified and managed to ensure that product distribution covers more stores and improves the product store rate of stores, and achieves more accurate resource allocation according to the corresponding market demand of each channel. In addition, Blue Moon actively carries out business through the O2O platform, expands the customer base and seizes new business opportunities, and the offline O2O model has become a boost for offline business. According to the financial report, Blue Moon has climbed to the first line in the O2O platform ranking of JD.com and Meituan Flash Sale in 2021.
China Merchants Securities pointed out that thanks to the forward-looking layout and years of hard work, Blue Moon online channel advantages are obvious. In addition, with the rise of China's sinking market and the improvement of living standards in third-tier cities and other low-tier cities, Blue Moon has seized the development opportunities of offline channel sinking, and product penetration will be further strengthened.
Adhere to the focus on long-term value, corporate development and ESG governance "two hands"
While insisting on promoting the company's innovative development, Blue Moon always focuses on long-term value, adheres to the implementation of measures to strengthen the company's long-term sustainable development, and is committed to exploring a green and high-quality development path with the ESG action principle of "more excellent products (services), more environmental friendly, and happier society".
Among them, condensation is an important part of Blue Moon's long-term practice of green development. Concentrated products have the advantages of smaller storage area, lower transportation costs, less packaging waste, lower carbon emissions, etc., while low foam and easy drift, saving water and electricity. The data shows that the penetration rate of concentrated laundry detergent in the mainland in 2019 was only 8.2%, while the current major economies such as the United States and Japan have reached 100%.
In this context, Blue Moon adheres to the "concentration" strategy unswervingly, not only using concentration technology for laundry detergent products, but also expanding into household cleaning and care products, such as Tianlu tableware fruits and vegetables cleaning essence and other products, insisting on expanding the company's concentrated products, and actively practicing the double carbon goal.
In terms of production, Blue Moon actively introduces advanced environmental protection technology and environmental protection equipment, and solidly promotes cleaner production. Whether in factory construction or plant use, Blue Moon uses low-energy, high-performance materials and equipment to reduce the potential impact on the environment. At the end of 2021, Blue Moon Tianjin Factory became the second "Green Factory" announced by the Ministry of Industry and Information Technology after the Chongqing Factory.
Relevant people said that as a responsible and responsible large-scale daily chemical enterprise group, Blue Moon adheres to the "same frequency resonance" between enterprise development and ESG governance, not only has remarkable achievements in enterprise development, ESG governance has also been widely recognized by the society, which is of great significance for its focus on long-term value and strive for long-term sustainable growth.
For the future, Blue Moon said that it will redouble its efforts to improve the value, reputation and recognition of brands and products; at the same time, it will focus on developing and strengthening brand awareness through experiential marketing, promote in-depth communication with consumers, penetrate into a wider range of customer groups, and pay close attention to consumer needs, and constantly innovate to promote the long-term and steady development of the Group. (Zhongxin Jingwei APP)