Author: Wang Xiaoxi
Recently, the adopted cow holding group co., ltd. (hereinafter referred to as "adopting a cow"), which is seeking to be listed on the A-share market, has once again attracted attention because of the "collapse incident" of the spokesperson.
On October 21, Beijing Chaoyang police reported that pianist Li Moudi was under administrative detention on suspicion of prostitution. With the release of the circular, a group of Li Yundi endorsement brands "lying guns", and the adoption of a cow is one of them. On October 22, the adoption of a cow said that the partnership with Li Yundi ended on July 15.
Adopt a cow just signed a listing counseling agreement with CITIC Securities at the end of September 2021 to plan an A-share listing.
Although it was only established for 6 years, the adoption of a cow has developed rapidly.
Public information shows that during the "618" period in 2021, the adoption of a cow ranked only after the two dominant brands of Yili and Mengniu in the dairy sales ranking of the Tmall platform, and the sales ranking of the brand flagship store ranked first in the industry.
What is the situation of "adopting a cow"?
The old cannon of the real estate turned to cattle breeding
"Adoption concept + influencer marketing", adopting a cow has attracted a large wave of consumers since its inception.
According to public information, Adopt a cow was established in 2014 and is mainly engaged in the development, production and sales of dairy products and fresh milk and modern ranch operation business.
At present, the main products of adopting a cow include "Adopt a Cow" brand pure milk, kefir, cheese sticks, milk powder and fresh milk for external sale. In addition, the company has also launched the "A2β Casein Pure Milk" product based on the "A2 Type Cow" and the "Juan Shan Cow Pure Milk" product based on the precious "Juan Shan Cow".
IPO Reference noted that the establishment of adopting a cow was related to a milk powder purchase experience of its founder, Xu Xiaobo.
Since the melamine incident in 2008, the number of Chinese consumers who went to Hong Kong or overseas to buy milk powder has increased sharply, and Xu Xiaobo is one of the consumers who buy milk powder in Hong Kong, China.
According to reports, Xu Xiaobo was a real estate developer before founding and adopting a cow, and Xu Xiaobo, who traveled to Hong Kong in 2012, purchased 8 cans of imported milk powder for his son at the behest of his wife, but was detained for 4 hours for violating the "purchase restriction order" when passing through the Customs of Hong Kong, China.
This unpleasant experience made Xu Xiaobo have the idea of setting up a dairy company.
In 2014, Xu Xiaobo spent 460 million yuan to establish a modern ranch in the ancient city of Hebei Province, and the entrepreneurial idea of "adopting a cow" was born in 2016, and then the company played the slogan of "buy milk, it is better to adopt a cow" to attract consumers.
In 2016, China's dairy industry showed an oligopoly situation after years of competition, and while the industry leaders Mengniu, Yili, Guangming and other enterprises occupied the main share of the market, regional dairy enterprises such as Sanyuan and Yantang were also actively competing for regional markets with low temperature freshness as the selling point.
In the face of the fiercely competitive market, the adopted cow that chooses to enter the game at this time chooses to use the form of "adoption concept + internet celebrity marketing" to play a popularity.
The so-called "adoption" is not that the consumer adopts the designated cow and obtains the milk source from the adopted cow, but allows the consumer to experience adoption through the cloud cattle game and other ways.
Sun Shijun, co-founder and CEO of Adopt a Cow, has publicly introduced that the adoption model is mainly divided into cloud adoption, joint adoption, and real-name adoption.
Specifically, cloud adoption refers to consumers' online interactions such as adopting cows and exchanging milk;
Co-brand adoption is the company's joint brand card launched jointly with Wu Xiaobo Channel, Dunhuang IP, etc., consumers obtain the right to adopt joint names through purchase, and regularly enjoy fresh products delivered directly to home services and member customization services;
Real-name adoption is when the consumer becomes a partner in cattle breeding, and the consumer is required to order milk 1 year in advance at the exclusive farm.
However, the "adoption model" of adopting a cow has also been controversial. Some consumers said they thought they had really adopted a cow to make it produce milk.
Interestingly, previously, the 2020 annual report disclosed by Mutong Technology, a company listed on the New Third Board, showed that the purchase amount of a cow for Mutong Technology in 2020 was 45.3989 million yuan. This also means that the adoption of a cow comes from part of the milk source. The disclosure of Mutong Technology data has also raised questions among consumers about the source of adopting a cow and adopting a milk.
Subsequently, the adoption of a cow responded that not all of its products are from its own milk source, and some of it is from partner farms of well-known enterprises in the industry.
Dairy influencer brands are in big trouble?
Although the adoption model has been questioned by some people, in fact, the unique model of adopting a cow has indeed made a certain reputation for it.
According to the guidance documents for adopting a cow listing, during the "Double 11" period in 2020, its brand Tmall flagship store ranked first in the sales ranking of brand flagship stores in the dairy industry; during the "618" period in 2021, its dairy sales ranking on the Tmall platform only ranked first in the two major brands of Yili and Mengniu, and the sales ranking of brand flagship stores ranked first in the industry.
Adopting a cow online sales has achieved good results, but more than 90% of China's traditional dairy enterprises sell offline, and the market share of Yili and Mengniu in terms of ambient milk is as high as 78%, and the "double giant" pattern is stable, if you want to shake the status of traditional dairy giants offline, it is not easy.
Because the ambient milk market is occupied by the "double giant" and it is difficult to shake, other dairy companies will focus on low-temperature milk.
According to Euromonitor consulting data, the sales scale of China's dairy products will reach 638.5 billion yuan in 2020, with a compound growth rate of about 10% in the past 14 years, and it is expected that the size of China's dairy market will reach 810 billion yuan in 2025. The growth rate of low-temperature milk increased from 6% in 2015 to 11.5% in 2019, and the market size reached 36 billion yuan in 2020.
Whether it is mainly normal temperature milk or low temperature milk, dairy enterprises are currently facing the problem of scarce pasture resources.
According to the "2021 China Dairy Statistics", among the TOP10 large-scale farms, 3 are controlled by Mengniu, 2 are controlled by Yili, and the number of holdings of Guangming, Sanyuan and Junlebao is 1. Most of the holding companies of TOP30 large-scale farms have also flashed the figure of large dairy enterprises such as Yili and Guangming.
The so-called "milk source wins the world", in order to grab scarce pasture resources, dairy enterprises frequently move.
For example, on April 8, 2021, Hyundai Animal Husbandry announced that it had signed an agreement with Zhongbo Agricultural Animal Husbandry Technology Co., Ltd. to acquire all of its wholly-owned shares in Zhongyuan Animal Husbandry for no more than RMB815 million in cash, and the acquisition was completed in July 2021.
In recent years, Mengniu has also acquired Shengmu Hi-Tech, Zhongding United and China Shengmu; Yili has invested in New Zealand Dairy Cooperative and Zhongdi Dairy; New Dairy has acquired part of the equity of Modern Animal Husbandry, Australian Cow Dairy and other companies.
If you want to adopt a cow to become bigger and stronger, how to obtain a high-quality milk source is a problem worth thinking about.
How to adopt a cow in the future, IPO reference will continue to pay attention!
(This article is for reference only and does not constitute investment advice, and you do so at your own risk)