Today (December 20), L Catterton, a fund under LVMH, the world's largest luxury group, announced on its official Weibo that the children's professional skin care brand - Turtle Daddy Hi!papa recently received its exclusive A+ round of investment, and the specific amount has not been disclosed.
Xu Yu Jiangsheng, founder of Turtle Dad, said that this round of funds will be invested in research and development, brand building, product upgrading and channel expansion.
It is understood that Daddy Turtle was established in 2019. In just 4 years, Turtle Daddy has built a complete product matrix to meet the skin care needs of all school-age children, and has grown into a pioneer in the category of domestic children's sunscreen and facial cleanser.
4 rounds of financing in 2 years
Brand development has been soaring
In the eyes of the outside world, it is not surprising that Turtle Dad has received the investment of LV Kateng.
As early as June this year, LV Kaiteng RMB Fund invested in Guangzhou Good Skin Technology Co., Ltd., the parent company of Turtle Dad, in the form of equity financing, and currently holds 5.26% of the shares, making it the company's fifth largest shareholder. As a result, Turtle Daddy has become the only leading children's skincare brand to receive the top dollar fund.
Commenting on the investment, Chen Yue, managing partner of LV Kaiten Asia Fund, said: "In the past year, Turtle Daddy has achieved high revenue and profit growth, and its diversified channel layout has also enabled the company to occupy an absolute leading market share in the blank market. We are very much looking forward to working with Daddy Turtle to empower him globally in terms of products, channels and brand marketing." ”
It is worth mentioning that, according to Tianyancha information, since 2021, Turtle Dad has received 4 rounds of financing.
In addition to the two rounds of financing from LVK, Turtle Daddy received angel rounds of financing from Qingrui Venture Capital and Zhongyuan Capital in August 2021 and March 2022 respectively, and Pre-A round of financing from Zhongyuan Capital, Qingrui Venture Capital and eLong Hotel Technology, which raised nearly 100 million yuan.
In the past four years, Turtle Daddy has not only performed well in the capital market, but also the brand development has been soaring.
In 2022, Turtle Daddy will stand out from thousands of Douyin brands with single product sales of more than 500w and a monthly GMV of more than 100 million. It has become one of the "Top Ten Douyin Brands" of the year in all categories of Douyin.
Entering 2023, Daddy Turtle is still soaring. On 6.18 this year, it not only won the TOP1 children's skin care category of Tmall, Douyin and Jingdong on the mainstream online e-commerce platforms in one fell swoop, but also increased by more than 800% year-on-year in Tmall and JD.com, and dominated the TOP1 children's sunscreen sales on the whole network for 3 consecutive years.
At the same time, offline channels are also the focus of Turtle Dad's layout. In 2022, it has entered boutique high-end supermarkets such as Ole, Hema and Pupu and fast fashion channels such as Sanfu Department Store, and has now covered nearly 30,000 terminal stores across the country. Since January this year, it has fully empowered the CS channels of maternal and infant terminals and cosmetics, and has successfully entered a number of top 100 CS chains.
Differentiated brand positioning
Seize the high ground of the blank market
Looking back on the brand development history of Turtle Dad, the differentiated brand positioning is an important reason for it to stand out in the infant care market.
At the beginning of its birth, the Turtle Daddy brand was strategically positioned as a mid-to-high-end children's personal care brand, which was differentiated from the "cost-effective" label of the old domestic baby care brand. "Turtle Daddy launched mid-to-high-end products to help brands open up the market, committed to filling the gap in the domestic market, and focusing on the concept of doing brands rather than doing business. The data consulting agency Cicada Mother said.
In February this year, Turtle Daddy upgraded the brand's strategic positioning to "a leading brand of effective skin care for school-age children", focusing on the two new trump cards of "plant extract + efficacy", accurately sniping the target consumer group and leveraging the school-age children's market.
In this regard, Chen Mufan, regional executive director of Kantar Worldpanel, once said: "Judging from the data, after the epidemic, consumption stratification has promoted the diversification of demand, mobility and openness have revitalized the outdoor scene, the camping economy is booming, families with children are one of the most valuable groups, and children's sunscreen products will show explosive growth." ”
In terms of product layout, Turtle Daddy mainly promotes the "big single product" strategy, and drives the growth of multiple categories with core fist explosive products.
The picture comes from the official Weibo of LV Kateng
It is understood that the "Turtle Dad" product line covers three major areas: children's body skin care, cleaning and washing, and sunscreen special care, and has created popular products such as children's sunscreen milk, double extract amino acid cleansing bubbles, and avocado moisturizing body lotion.
Among them, Xiaoxueshan sunscreen is an absolute star item, with the characteristics of pure physical sunscreen, mild and safe, clean water removable, high-value appearance, etc., less than 4 months after its launch, it has long dominated the sales of the whole network and Tmall, and has sold more than 6 million pieces as of February this year.
At present, Turtle Daddy has completed the high-speed advancement road from new products to explosive models, from large single products to categories, and from category leaders to subdivision track leaders.
50 billion new blue ocean market
Storytelling requires extra care
In the research reports released by a number of data consulting agencies, the infant care market will be a hot track in the next few years.
According to Euromonitor, the total domestic market for children's skincare products has reached about 19.7 billion yuan in 2018 and continues to grow at an annual growth rate of 15%, which is ahead of the growth rate of the adult care products market of 12.3%, and is expected to reach 50 billion yuan by 2025.
The Frost & Sullivan report also pointed out that the growth rate of the baby care market is ahead of other segments of cosmetics.
From the brand side, in recent years, not only veteran players such as Frog Prince and Yu Meijing, who have completed market education, are not to be left behind and have frequent actions, but also new dark horses such as turtle fathers who focus on the skin care of school-age children's plant extracts, and rabbit head mothers who pay attention to children's age-specific washing and care. In addition, the head listed companies have also stepped up their entry into the game, such as Shangmei in addition to the red elephant brand and launched a new baby skin care brand newpage, Winona Baby has become the second largest brand in Bethany's financial report.
The hot baby care market has also attracted capital from all walks of life to actively enter the game.
In 2022 alone, there will be children's care brands such as Evereden, MAYKERR, Turtle Dad, Babbling, and Youshang, which have received up to 100 million yuan of investment. This year, Senmin took the lead in completing the million-level strategic financing, and in August, Runben shares were listed on the Shanghai Stock Exchange and became the "first stock of infant and child care".
Of course, as more and more brands and capital run into the infant care segment, a fiercely competitive "battle" has officially begun.
In the era of effective skin care, the ingredient party and the efficacy party are popular. However, for baby care brands, the ingredient story of "killing all sides" in the world of adult skin care needs to be much more cautious in the world of babies and children, because the regulations on the supervision and administration of children's cosmetics clearly state that the formula design of children's cosmetics should follow the principles of safety first, efficacy and formula minimalism, which is also a key factor for "Bao Bao Bao" to consider when purchasing goods.
It is also for this reason that most of the major baby skin care brands take "peace of mind", "professionalism" and "repair" as the marketing points, and establish a new brand scientific research mentality on the basis of this time.
Taking Turtle Dad as an example, its official brand concept is "love nature, scientific maintenance", in order to establish scientific and technological barriers, in February this year, it joined hands with Zhongke Lanzhi to set up the first "school-age children's skin care laboratory" in China. After obtaining the financing this time, Xu Yu Jiangsheng also said that he will continue to use science and technology as the engine to comprehensively expand the product line in the field of children's light care under the guidance of the new strategy of "children's anti-light loss".
In addition, Shangmei's page is also positioned as "born for sensitive skin", strengthening the brand mentality of "medical research and co-creation", and Winona Baby is also positioned to "focus on baby's sensitive and fragile skin", but it focuses on solving the skin problems of infants and young children who are prone to eczema, red farts and dry skin with the leading ingredients green thorn fruit and purslane, so as to create differentiated product advantages.
In general, even though there are many opportunities in the blue ocean market, if brands want to become "dark horses" on the infant care track, they still need to pay more patience and efforts to consolidate the core of scientific research and cultivate product quality and hard power.
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