Blue Moon has always been a leader in domestic brands, but now it is rumored that the market price has evaporated by 100 billion, which has also sounded the corporate alarm for this pseudo-domestic product. Netizens said: Finally, I can't hide it? So what happened to this brand company? And how to deal with it?
The name of Blue Moon, I believe no Chinese has not heard of it, although this brand was listed in 2020, but it quickly became well-known as a brand, and now it has ushered in a three-year stock price crash!
As a listed company, it was worth 14.95 yuan a share when the stock was issued, but now three years later, it can be bought for only 2.21 yuan, so you can imagine how the stock price of Blue Moon has fallen.
This makes it difficult to understand, doesn't Blue Moon have good sales in the field of cleaning and care? Why is the stock price falling so fast?
Judging from Blue Moon's recent financial report, the lowest net profit margin growth rate in history is -7.84%, which means that the brand company has been in a downward trend, and even this decline can be called halved.
Compared with 2021, the profit margin in 2023 is directly 5.56% less than the profit margin, which can be imagined that this is not just a halving decline, but the statement given by the company is not a direct acknowledgment of this phenomenon.
Instead, he chose to whitewash the peace with different excuses every year, and in 2022, there will be a huge trend of declining profits, and the company has thrown the blame for the fluctuations in the international exchange rate, and has never found the reason from itself.
In 2023, the company will use the statement of strategic adjustment to make the benefits of Blue Moon even less, to cope with the past, and even to say that the demand for disinfection and cleaning products has shrunk after the epidemic.
All of these obvious reasons are just excuses, but in fact, the company's profit margins are declining more and more, but the cost of sales expenses has increased, coupled with market segmentation.
Nowadays, cleaning and care products can be divided into three categories: personal cleaning and care, clothing washing and care, and household cleaning and care, and other brands will also subdivide in these three categories, such as cleaning and care products specially made for different clothing, and products developed for sensitive skin, etc.!
Blue Moon has not done as well as it should in this regard, although it has also participated in the competition in this regard, such as making underwear products, and has indeed achieved good results, but it has not performed better.
And in terms of the cost of sales, it is quite unacceptable, through statistics, it is found that from March 2, 2020, the company's sales and distribution expenses have reached 2.017 billion yuan, which is still increasing year after year, and the highest expense ratio has reached 44.29%.
Far more than the sales expense rate of other cleaning and care brands, although this result, although it cannot affect its position in the cleaning and care market for the first time, it is also constantly eating away at the blue moon.
This is the reason why the real market value of Blue Moon has evaporated so quickly, and now what makes it competitive in the market is only the influence of the Blue Moon brand, after all, this is the personal endorsement of the athletes of the year!
I believe that soon such an advantage will no longer exist, the reason why Blue Moon is accepted and trusted by people, in addition to its greater influence, is more of its domestic identity, Chinese tolerance for domestic production is still larger.
Now even this identity is about to be lost, the former founders of Blue Moon are Luo Qiuping and Pan Dong couple, they occupy 90% of the share of this brand, and now they have already added their nationality to Canada, and with the wealth created by Blue Moon in one fell swoop, they will be on the Canadian rich list in 2021!
In fact, at the beginning of the creation of Blue Moon, it also encountered many ups and downs, and most of the Blue Moon relied on supermarket shelves for sales, and the sales channel was quite single, so the competition was extremely fierce in this case.
At that time, it was those supermarkets that could be called uncles, no matter how arrogant others were, they wanted Blue Moon to tolerate, and later the decision-makers simply chose to break up with these supermarket brands, which means that it is difficult to see Blue Moon products in many large supermarkets.
This is also a more urgent crisis encountered by Blue Moon, but after this catastrophe of major supermarkets being taken off the shelves, Blue Moon has gradually changed from the original offline sales to an online sales channel.
It has reached a consensus with Jingdong, an online channel, at this time, Blue Moon, successfully transformed into an online cleaning and care brand, which can be regarded as a blessing in disguise, from 2017 to 2019, when it turned to online sales, and online income gradually rose.
Blue Moon has not been very good in recent years, just like the decline in the company's shares, especially the product is too single, the cost performance is relatively low, and it is impossible to withdraw from more new categories for consumers to choose, which is the disadvantage of Blue Moon.
Blue Moon intends to raise its own level positioning and go to the high-end market through its own upgrading, but the effect is not very good, resulting in extremely high sales, and it is obvious that the high-end market is not so easy to squeeze into.
I believe that if Blue Moon does not think clearly about the road to be taken in the future, it will only end up falling to the company's shares!
Material Source:
Half-year loss of 44 million Hong Kong dollars! The high-end road is difficult to walk, how does Blue Moon face the evaporation of market value and the rising cost丨Investment Times
