Personal IP and products, the two are difficult to merge into one.
On October 21, Mao Geping Cosmetics Co., Ltd. made its debut and is expected to become the first share of domestic makeup artists to create their own makeup.
The company is mainly engaged in the research and development, production, sales and makeup skills training of two major brands of makeup and skin care products of "MGPIN" and "Beloved Life".
Mao Geping submitted a prospectus in 2016 to seek an A-share IPO, but the IPO process stalled in 2017, and there was no news update in the following five years. After 5 years of waiting, Mao Geping finally ushered in the dawn of listing.
Product picture / source Mao Geping official website
Mao Geping's hands are not equal to makeup
Mao Geping's entrepreneurial history can be traced back to 1998.
At that time, the domestic makeup brand power that had not yet formed a multi-angle pattern in China was basically occupied by foreign brands. After Mao Geping became famous with Liu Xiaoqing's Wu Zetian makeup from eighteen to eighty years old, the initial entrepreneurial direction was makeup training, and the first store was opened on Qingchun Road in Hangzhou.
Today, Mao Geping has opened 9 branches in 9 cities across the country, with a total of three types of courses: permanent classes, short-term classes and online courses. Makeup training has always been Mao Geping's main business, which is the main reason why he is known as a professional makeup brand.
If makeup training established Mao Geping's "master" status, then the makeup brand is the main driving force for its listing.
Station B searches for screenshots of "Mao Geping"
According to the prospectus, from 2014 to the first half of 2017, the sales revenue of the beauty brand MGPIN series was 192 million yuan, 214 million yuan, 247 million yuan and 142 million yuan, accounting for about 70% of the main business income of each period.
A large number of consumers pay for the Mao Geping series of makeup, but from the market feedback, there are still two major problems: low cost performance and not suitable for novices.
From the price point of view, Mao Geping a box of more than 600 yuan of makeup powder, a set of more than 3,000 skin care essence sets, so that many consumers are prohibitive. At the same time, high pricing doesn't match high quality. "Poor powder quality" and "easy to take off makeup" are the general doubts of netizens about quality, "novices are not applicable" is a question of Mao Geping's product design concept, Mao Geping's makeup left Mao Geping's hand, it seems to become ordinary.
Two major shortcomings: R & D and channels
From the feedback of consumers, digging deeper, it can be found that Mao Geping's biggest problem is mainly in research and development and channels.
Taking research and development as an example, according to Mao Geping's prospectus, from 2014 to the first half of 2017, all of Mao Geping's products were OEM, there was no independent production line, and its cost composition was mainly based on outsourcing processing mode, and outsourcing processing costs accounted for more than 50% of the total product cost.
Not only is there no independent production line, Mao Geping's R&D investment is also one of its shortcomings. According to the prospectus, from 2014 to the first half of 2017, Mao Geping's R&D investment was 2.4469 million yuan, 3.0511 million yuan, 3.4227 million yuan and 1.5717 million yuan, accounting for only 0.88%, 0.95%, 1.00% and 0.78% of the revenue in the same period.
R&D Expenses/Source Mao Geping Prospectus
Compared with Shanghai Jahwa, from 2014 to 2017, its research and development expenses were 140 million yuan, 131 million yuan, 125 million yuan and 161 million yuan, and the revenue accounted for 2.62%, 2.24%, 2.35% and 2.48% respectively, and the proportion of revenue in each period was higher than that of Mao Geping.
In terms of sales channels, the sales revenue of department stores has continued to grow from 69.35% in 2014 to 74.07% in the first half of 2017. The proportion of e-commerce channel revenue is not high, accounting for only 2.10% in the first half of 2017.
Sales model/source Mao Geping prospectus
This is obviously different from the domestic makeup brand Perfect Diary and Huaxizi, which also focuses on the national style, in terms of channel layout.
In the middle of the game, Mao Geping also realized the importance of two major issues.
In this IPO, Mao Geping intends to issue no more than 20 million shares, and intends to raise nearly 512 million yuan, of which 229 million yuan will be used for channel construction projects, 71.5842 million yuan for R&D center construction projects, 60.9468 million yuan for image design training institution construction projects, and the remaining 150 million yuan for supplementary working capital.
However, the moat cannot be built in a day, and the shortcomings cannot be made up by funds alone. Mao Geping's road to IPO remains to be seen.
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