Recently, 603605. SH) product "feather sense sunscreen" was questioned about the poor sun protection, which triggered heated discussion among netizens. On April 28, Polaria issued a statement on the official Weibo saying that "there are differences in some batches of finished products" and opened an after-sales channel.
"Feather sense sunscreen" is Aleya's "new big item", Red Star Capital Bureau found that the product has been removed from the Tmall flagship store, but the product detail page shows that its monthly sales reached 80,000+.
On May 4, Red Star Capital Bureau called the office of the secretary of the board of directors of Polaria to inquire about the relevant matters and the follow-up of the incident, but the phone was not answered.
The picture is from the official Weibo of Polariya
Red Star Capital Bureau noted that Polaria had previously relied on the "big single product strategy" supplemented by heavy marketing, seized the outlets of online channels, online celebrity live streaming and social grass planting, and tried to build itself into the "light of domestic goods". In recent months, it has performed well in the stock market. In the context of the continuous shock of A-shares, The stock price of Polayal has grown against the trend, and from March 15 to April 29, its stock price rose by 26.31%, and is currently 201.46 yuan / share.
After the product rolls over, can Polaria still "bull" go down in the stock market?
Influencer products have been questioned for poor sun protection
Pleia: There are differences in some batches of finished products
Red Star Capital Bureau learned that the fermentation point of the recent "feather feeling sunscreen" incident in Polaria was a sunscreen evaluation video released by the blogger "Music Orchestra Leader" on April 27. In the summary chart of the video, the "protective power" of feather-sensitive sunscreen was crossed, and the video that the blogger responded to on April 28 also called the product "extremely poor sun protection". The sun protection value advertised by Feather Sense Sunscreen itself is "SPF 50+, PA++++".
The blogger also pointed out that the product has different quality in different batches, and it is suspected that the ingredient content is changed without authorization.
Screenshot from the blogger "Orchestra Leader" video
Later, some netizens broke the news that the product "has the risk of stuffy pox and suffocation".
In response, Pleia responded on the afternoon of April 28 that the formula of "Feather Sense Sunscreen" (Pleia Light Sunshine Feather Care Essence Sunscreen) has not changed since its filing... In the inspection, we found that there were differences in some batches of finished products, which affected the experience of some consumers. Pleia also said that from April 28, 2022, the official will open the after-sales channel.
But Red Star Capital noted that netizens were not satisfied with the apology. Some netizens commented below the statement, "I don't think such an apology letter is sincere enough." ”
In addition, there are many doubts under the statement. Some netizens questioned that the statement did not mention the problem of substandard sun protection value; some consumers said that the used products were not allowed to be returned; in addition, consumers said that when the Jingdong platform initiated the return, they received a phone call asking for deduction of the used sample of money.
The customer service of the official flagship store of Polaria Tmall told Red Star Capital Bureau that the return refund needs to return the formal dress. JD customer service also said that it will send back the formal dress and the remaining samples. However, the above-mentioned customer service has told Red Star Capital Bureau that even if there is no sample, the full amount can be refunded by sending back the used formal clothes. However, when asked whether the empty bottle can also be refunded in full, the customer service is not clear.
In response to the problem of sun protection, Polaria responded under the video of blogger "Luo Wangyu": "Feather sense sunscreen is allowed to be listed after strict sun protection testing; due to unstable production links, product problems ..."
On April 28, the blogger "Orchestra Leader" sent a video back to the incident, saying that Pleia had "problems with the ingredients, problems with the batch, and problems with the X (effect)" and said that Polaya said that it was "an inherent loophole in their system".
Rollover under the "big single product strategy"
Hundreds of millions of marketing expenses may be adrift
Founded in 2006, Polaria is mainly engaged in the research and development, production and sales of cosmetic products, and currently has brands such as Polaria, Caitang, Off & Relax, Yue Fu Yuan, CORRECTORS, Uzilai, Hanya and so on.
Red Star Capital Bureau learned that The revenue of Polariya in 2021 reached 4.633 billion yuan, an increase of 23.47% year-on-year, and the net profit attributable to the shareholders of the listed company was 576 million yuan, an increase of 21.03% year-on-year.
It is reported that Since 2019, Polaria has begun to do "big single product strategy" and seized opportunities such as social media marketing, live streaming with goods, and online channels to revitalize the business. Since 2019, its main business income has increased by 32.11%, 20.26% and 23.28% year-on-year. In 2021, the online channel revenue of the main business is also growing year by year, with 3.924 billion yuan in 2021, accounting for 84.93% of the total revenue, an increase of 49.54% year-on-year.
The so-called "big single product strategy", that is, enterprises through high investment to create explosive products, the strategy is often used in many brands, fierce competition in the market, to help brands quickly grasp the user's mind, thereby enhancing sales and the influence of the entire brand. In its 2021 financial report, Polariya mentioned that "feather sense sunscreen" is a new "new big item" to be pushed.
The creation of explosive models is inseparable from heavy marketing, and the sales expenses of Polariya in 2021 increased by 494 million yuan year-on-year, which said that "mainly due to the image promotion costs of this period increased by 447 million yuan year-on-year".
However, once there is a quality or word-of-mouth problem in the blockbuster product that is heavily bet on, it is not known whether the previous marketing is expanding the impact or amplifying the problem. At present, consumers on the Internet have used "collapsed houses" to describe this incident, and some consumers have said that "another credit bankruptcy".
In its 2021 financial report, Pleia also said that it is necessary to push "the 'Polaria is really different' in the minds of consumers last year to 'Polaria is the light of domestic products that can represent China to compare with the world'". However, at present, Polaria may still have a long way to go to achieve this goal.
Known as the "Ten Times Bull Stock"
After the incident, the stock price of Polaria did not fall but rose
Red Star Capital noted that Polaria was previously known as the "Ten Times Bull Stock" because its stock price rose against the trend in the recent A-share continuous shock. From March 15 to April 29, Polaria's share price has risen by 26.31%, and it is currently 201.46 yuan per share.
Interestingly, after the "feather feeling sunscreen" incident, Polaria's stock price fell back on April 28, but on April 29, the stock price began to rise again.
However, some investors believe that "consumer stocks are most afraid of quality problems". Previously, there were many cases of dragging down the entire enterprise due to product quality problems, as a consumer brand, if the incident was not handled well, or if there was a product quality explosion, consumer trust was difficult to pick up, investors will eventually choose to "vote with their feet".
Red Star News reporter Yu Yao intern reporter Zhang Luxi
Edited by Yu Dongmei