Did you have a third child? Whether you are born or not, capital can no longer sit still.
On October 14, 2021, the mother and baby brand Child King (stock code 301078) landed on the GEM. The total amount of funds raised in the offering was RMB627 million, the issue price was RMB5.77 per share, the number of shares issued was 108,906,667 shares, and the price-to-earnings ratio was 20.23 times. On the first day of listing, the stock price of Child King ushered in a highlight moment, rising 303.81% on the same day, with a total market value of 25.350 billion yuan.
According to "Ai Qian People" (IASK-MEDIA.COM), in 2009, Wang Jianguo founded the Child King. As the head player of the mother and baby retail track, Kid King has 500 stores nationwide, with more than 48 million members, more than 33 million APP users, and more than 1.9 million monthly active users.
According to the prospectus: "Based on providing one-stop shopping and all-round growth services for expectant mothers and 0-14-year-old babies and children, the company deeply excavated customer needs and created a single-customer business model with membership relationship as the core asset." It is reported that a large amount of income from the child king comes from members, as of the end of 2020, the number of child king members exceeds 42 million people, and the income contributed by members accounts for more than 98% of the sales revenue of all mother and baby products.
Listing is highlight? In fact, Child Wang was listed on the New Third Board on December 9, 2016, and then delisted from the New Third Board in March 2018. In this context, this time landing on the Shenzhen Stock Exchange Gem, is the child king the second crossing of chishui, or the return of the king?
50-year-old when the child king?
Speaking of the child Wang has to say Wang Jianguo, speaking of Wang Jianguo has to mention five-star electrical appliances.
Born in 1960, Wang Jianguo graduated from the Jiangsu Provincial Commercial School at the age of 21 and became a staff member of the Jiangsu Provincial Department of Commerce. Six months after being assigned from the school to the Provincial Department of Commerce, Wang Jianguo became one of the members of the "Provincial Party Committee Working Group". However, he did not seem to be "satisfied" with the routine work, which was catching up with the boom in going to the sea, and in 1991, Wang Jianguo was transferred from the Department of Commerce to the Provincial Wujiaohua Company and officially devoted himself to the commercial sea.
In 7 years, Wang Jianguo sat in the position of general manager of Wujiaohua Company in Jiangsu Province, and changed the company's name: Five Star Electrical Appliances.
On December 18, 1998, Five Star Electric Appliances was officially established in No. 192 Zhongshan North Road, Nanjing, mainly engaged in air conditioning wholesale business. In April 1999, Five Star Appliances successfully opened the first chain store, Haian Wenfeng Chain Store. Subsequently, chain stores in various places have opened one after another, and nearly 20 chain stores in The surrounding suburbs of Nanjing, jiangning and other suburban counties, northern Jiangsu and other places have opened one after another.
In 2002, Zhenjiang Five Star Electrical Appliance Zhenjiang Store opened, and the road of chain expansion officially set sail. Next, Five Star Appliances opened dozens of home appliance retail chain stores in Suwan and Anhui provinces. On December 18, 2003, the flagship store of Five Star Electric Nanjing Xinjiekou was opened. In 2005, Five Star Electrical Appliances began to move from a regional chain to a national chain.
Generation Z young people may not be clear, but in that year, Wang Jianguo's five-star electrical appliances had a commercial status second only to Gome and Suning.
In 2009, when five-star electrical appliances were in the limelight, Wang Jianguo made a big move: he sold five-star electrical appliances to Best Buy in the United States, making five-star electrical appliances a wholly foreign-owned company.
Some people once criticized Wang Jianguo's move as a "traitorous act", but in fact, the home appliance industry at that time was already a red sea, and each family was addicted to the "price war", which was not inferior to the "subsidy war" of the takeaway and online car industry in recent days. In addition, the home appliance industry had already shown signs of recession at that time, and even if it won the battle against Gome and Suning, the space to go up was very limited.
Therefore, Wang Jianguo chose to "retreat from the rapids". From now on, this decision is undoubtedly correct. Because in 2009, not long after, Ma Yun and Liu Qiangdong, with Alibaba and JD.com, made great strides.
Wang Jianguo, who withdrew in time, did not retire early with a huge amount of money, but turned around and founded the child king. At the end of 2009, the first store under the line of Child King was officially opened in Wanda Plaza in Hexi, Nanjing.
From home appliances to mothers and babies, 50-year-old wang, Wang Jianguo, who started a cross-border business, what myths have been written?
Mother and baby market as the "boss"
For the reasons for choosing the mother and baby industry, Wang Jianguo once said in an interview: "The baby and child market capacity is no less than the home appliance market, and the social value is greater. I have been in the position of the 'old third' in the home appliance industry for a long time, and finally found the opportunity to be the boss. ”
11 years ago, the mother and baby industry has not yet appeared large chain enterprises, the industry is mostly based on small workshops such as mom-and-pop shops, due to the cheap retail prices, the market has not established an "order". In this context, Wang Jianguo, who wants to be the "boss", has opened up a set of alternative "Wang-style philosophy".
After examining advanced retail formats in Europe, Southeast Asia, the United States, etc., it was found that there was no successful business model to follow. Wang Jianguo's approach is to make a "building block" combination and transplant the world's advanced retail elements, such as borrowing Costco's membership system, Wal-Mart procurement, Watsons' own brand, Carrefour's operation, etc.
After Wang Jianguo sold five-star electrical appliances to Best Buy, the valuable experience he got was: retail as a service, service as an experience. As a result, they went on to make a fuss about user experience. The starting point of the child king is to seize the middle-class market, grab traffic online, and grab the position offline, all around the core users.
However, it is undeniable that it is extremely difficult to enter the maternal and infant market. For example, the maternal and infant market industry is very finely divided, the production enterprises are not only too diversified, and the scale is relatively small, and the safety and health requirements of the products are high, so it is no accident that this industry has not been born a giant enterprise. Wang Jianguo's "building block" combination undoubtedly solves such industry pain points very well. Child King is one of the first batch to target "one-stop" services, the milk powder, infant clothing, toys, daily necessities and other necessities are all "stuffed" into the same store, and based on this to develop a membership model.
The official website of The Child King Company has such a description: "Describe the member-centered omni-channel operation, and provide members with a full range of quality services." ”
"Aiwen People" (IASK-MEDIA.COM) believes that such omni-channel operation and all-round high-quality services are inevitably indispensable to supporting software and hardware facilities, and the first child Wang offline store located in Nanjing Hexi Wanda Plaza has an operating area of 8,000 square meters. At that time, Wang Jianlin refused to sign the rental property, and asked: "The shops of children (supplies) are small shops, there is no big shop, why do you want a 5,000 square meter?" Are there more than 2,000 square meters of stores in Japan? ”
Wang Jianguo was categorical and arrogant: "Boss, I just sold the company, whether the shop is successful or not, I will not owe you rent." ”
In 2010, The Child King began to go out of Jiangsu and lay out regional markets such as Anhui, and in October of the same year, the Child King won the honor of "2010 China Retail Innovation Award". From 2011 to 2012, Boy Wang began to enter the southwest and Shanghai markets, and in August 2012, he received the first round of investment- THE AMERICAN WARBURG PINCUS Investment Group investment of 55 million US dollars.
In 2014, Kid King introduced digital means. In 2015, under the background of Internet +, Kid King officially launched the offline and online omni-channel strategic layout and launched the first version of the official APP mall; in this year, Kid King has successively entered Guangzhou, Henan, Shaanxi, Liaoning, Tianjin and other regions, and the number of stores nationwide exceeded 100.
In December 2016, Zi Wang successfully listed on the New Third Board, with a total market value of more than 14 billion yuan, ranking among the top ten non-financial enterprises on the New Third Board.
No competition is the biggest competition?
Wang Jianguo does not advocate competition, he said: "It is not that I am afraid of competition, but that I believe that non-competition is the biggest competition." ”
In 2016, the first paragraph of article 18 of the new Population and Family Planning Law clearly stipulated that "the state encourages a couple to have two children". In May 2021, the rumored three-child policy came again.
In recent years, the market size of China's maternal and infant industry has been expanding. According to the data, the market size of the maternal and infant industry will reach 4,085.7 billion yuan in 2020, and it is expected to reach 4,776.1 billion yuan in 2021, and this figure will increase to 7,629.9 billion yuan by 2024.
(Source: Fruit set data)
But in fact, with the continuous decline in the size of domestic newborns, coupled with the sudden epidemic in 2020, most of the economic players in the maternal and infant market have encountered a "water retrograde period". Honey Bud turned to e-commerce early and closed a large number of offline stores last year; by August this year, the head mother and baby e-commerce platform Beibei Network was in arrears of more than 100 million yuan; Babytree also released a 2021 interim report, and still failed to get rid of the loss dilemma.
Comparatively speaking, in the past 5 years, the revenue of the child king is growing year by year. From 2016 to 2020, the operating income of Child King was 4.46 billion yuan, 5.24 billion yuan, 6.67 billion yuan, 8.24 billion yuan and 8.36 billion yuan, respectively. In the past five years, the total revenue has reached 32.959 billion yuan. From 2017 to 2020, the revenue growth rate of Child King was 27.4%, 23.6% and 1.4% respectively. The same trend is shown in terms of net profit.
From 2016 to 2020, the net profit went from a loss of 140 million yuan to 0.9 billion yuan, 280 million yuan, 380 million yuan and 390 million yuan, and 1.14 billion yuan in the past four years.
According to the prospectus, more than 60% of the funds raised by The Child King in this IPO will be used for the construction of omni-channel retail terminals. As of the end of last year, Kid King had a total of 434 directly operated stores in 31 cities across the country. According to the plan, in the next three years, Kid King will also build 300 new stores.
"AiWen Characters" (iask-media.com) found that the store of Child King is characterized by the "big store model", with an average single store area of about 2500 square meters, and the largest single store area is more than 7000 square meters. Wang Jianguo was once arrogant, but this did bring cost pressure to the child king. It is worth noting that from 2018 to 2020, the leasing fee of The Child King was as high as 482 million, 546 million and 592 million, respectively.
At the same time, with the vigorous development of e-commerce, the cost of opening a store is getting lower and lower, and the once chaotic mother and baby market 12 years ago has already poured into a larger number of "players". At present, there are 2.365 million mother and baby related enterprises in China, including maternal and infant products. In the first five months of 2021 alone, the number of registrations of mother and baby-related enterprises was 528,000, an increase of 110.4% year-on-year. The industry predicts that the number of registrations of mother and baby-related enterprises is expected to exceed one million in 2021.
From this point of view, Wang Jianguo, who advocates non-competition, must also face competition. In order to further seize the development opportunities of the maternal and infant market and expand market coverage, Kid King adopts the integration of online and offline to build a C-end product matrix including mobile APP, WeChat public account, mini program, micro mall, etc., at the same time, in the offline store layout, continue to promote the iterative upgrading of store functions and positioning, and create large-scale user stores based on scenarios, service and digitalization through in-depth strategic cooperation with large shopping malls such as Wanda and China Resources.
12 years later, when five-star appliances became history, and then talking about competition, Wang Jianguo said: "The essence of business has not changed, the essence of business is the user, the user is the most fundamental." The way of thinking I use is still the underlying logic - innovation around the user. ”
When the child Wang once again ushered in the highlight moment of listing, Chairman Wang Jianguo also refreshed his wealth ranking once again. According to the prospectus, Wang Jianguo indirectly controls 46.25% of the shares of The Child King before the listing through his wholly-owned Jiangsu Bosida and its co-actors Nanjing Qianshinuo and Nanjing Ziquan, and at the current rough calculation of 21.30 yuan per share, wang Jianguo's stock market value reached 10.7 billion yuan, which was nearly 400 times higher than the 27.0655 million yuan capital contribution of Wang Jianguo, which was originally built by the child Wang to build a red-chip structure.
However, it is still the cliché that today, when the demographic dividend is declining and competitors are entrenched, the listing of the child Wang today is only another starting point for Wang Jianguo at the age of 62.
END
Author: Black-skinned monkey
Edit: Multi-gold
Editor: Qiu Qiu
Image source: Network intrusion and deletion