From ancient times to the present, the Chinese people's pursuit of beauty has never stopped. With the increase in income, the growth of the consumption power of the young people represented by Generation Z is parallel to the rapid development of the Internet, and more and more consumers are willing to invest in "love beauty".
According to Taobao data, in February 2021, the turnover of makeup on the Taobao platform was 14.739 billion yuan, an increase of 11% year-on-year; the top three brands in terms of sales were Huaxizi, Perfect Diary, and Saint Laurent, of which the turnover of Huaxizi, which ranked first, was 276 million yuan, an increase of 103.48% year-on-year.
With the rise of China's domestic products, many domestic brands have begun to appear in the eyes of consumers, and national tide brands such as Huaxizi and Perfect Diary have mixed up, and some makeup companies have set off a new round of listing waves.
On October 21, Mao Geping Cosmetics Co., Ltd. will be the first to the meeting, and the former "high-end domestic seed player" finally stood at the door of the capital market after waiting for five years. This also means that Mao Geping is getting closer and closer to winning the first share of domestic makeup.
Under the new brands such as Huaxizi and Perfect Diary reaping the favor and capital blessing of the consumer market, how does Mao Geping, a domestic makeup company that is out of the circle with "makeup techniques", stand out? We may start with the following points.
The financing journey
In the Chinese makeup industry, when it comes to professionalism, no one can be right of Mao Geping.
As early as the beginning of this century, Mao Geping, founded in 2000, launched the MGPIN Mao Geping brand with the positioning of professional makeup, and entered the department store channel, taking major international brands as competitors. In 2003, Mao Geping's cosmetics brand entered the Shanghai Grand Gateway Mall to open its first counter, and sold 190,000 yuan in the first month.
Subsequently, through the continuous expansion of the personal influence of founder Mao Geping, the company's management team has grown day by day, and the brand with increasingly rich product range has found a differentiated positioning of "high-end and professional", and gradually approached the online consumer market and young consumers.
In addition to the makeup brand, Mao Geping also designed a training institution to carry out makeup skills training obligations, further enhancing the company's overall visibility and industry position in the industry.
In terms of financing history, according to Tianyan, Mao Geping has received two rounds of financing since its establishment, namely: the strategic financing of 58.5 million yuan jointly invested by the newly developed and Puhua Capital in November 2010, and the equity transfer of 6 million yuan by Jiuding Investment in October 2015.
In today's era of the rapid rise of domestic makeup brands, Mao Geping has become popular on the Internet because of the makeup technology that can be called "head changing". The popularity of personal IP has driven brand awareness, which has entered the eyes of domestic consumers. However, under the division of most of the cutting-edge brands and overseas high-end brands in the domestic makeup market today, Mao Geping's life is not good.
Financial data
According to the prospectus data, Mao Geping's revenue is generally in the stage of upward development, but the year-on-year increase in revenue fluctuates greatly.
Based on other data, the revenue from 2017 to 2020 was 304 million yuan, 389 million yuan, 556 million yuan and 730 million yuan respectively, with a year-on-year increase of -11.46%, 28.08%, 42.78% and 31.34% respectively. The net profit was 70.0554 million yuan, 81.8846 million yuan, 125.501 million yuan and 174.8926 million yuan, respectively, with a year-on-year increase of 31.39%, 16.89%, 53.27% and 39.36% respectively.
In addition, according to the prospectus, the income gap between Mao Geping's two brands is obvious, from 2014 to the first half of 2017, MGPIN's revenue was 192 million yuan, 214 million yuan, 247 million yuan and 142 million yuan, respectively; the lifelong revenue of Zhi'ai was 46.6512 million yuan, 50.6355 million yuan, 37.1547 million yuan and 22.0739 million yuan, accounting for more than 50% of the total revenue gap, and high dependence on a single brand may become a major obstacle after Mao Geping's listing.
The company's consolidated gross margin is consistently higher than the industry average gross margin. From 2014 to 2016 and from January to June 2017, mao geping's comprehensive gross profit margin was 81.50%, 79.70%, 78.22% and 78.88%, respectively, and the peer average was 73.27%, 73.17%, 73.20% and 69.92%, respectively. Mao Geping, which positions the high-end route, naturally has more advantages in gross profit than affordable big brand brands, but this is mainly inseparable from its foundry model.
As a domestic self-created makeup, R & D investment should be paid attention to, but Mao Geping in research and development investment is very small, 2014-2017, Mao Geping R & D investment accounted for the highest proportion of operating income of no more than 1%, the total investment in about 3 million, compared with other peers This R & D investment is as fine as cattle hair.
Although Mao Geping's products themselves are mainly produced by foundry, the foundry model is not reliable. Perfect Diary products have been questioned because of their dependence on OEM and heavy marketing and light R&D investment. Quality control can not be mastered, upstream costs can not be controlled, new product development can not talk about the shortcomings of these three foundry models, which is probably Mao Geping's products in the domestic makeup products continue to innovate today, it is difficult to catch up with the self-service R & D capabilities of the makeup company reasons.
competitor
Driven by a series of factors such as the continuous improvement of residents' disposable income, the continuous improvement of The chinese people's external image requirements and cognition, and the changes in the structure of the core consumer population, the domestic makeup industry has maintained steady growth.
According to Ai Media Consulting data, the scale of China's makeup market continued to expand from 2014 to 2019, with the makeup market size of 22.64 billion yuan in 2014 and 45.23 billion yuan in 2019, an increase of 22.59 billion yuan; 2021 is predicted to reach 44.91 billion yuan.
At present, with huge market potential, there are not only overseas big brands such as L'Oréal, Lancôme, Estée Lauder, etc., but also the domestic brands Perfect Diary, Yiyezi, Winona, etc.
At present, Mao Geping is on fire because of the founder's personal IP color, but its main "high-end and professional" means that there is a distance from consumers, and most consumers' understanding of Mao Geping is more focused on makeup and styling, and the general recognition of its cosmetics itself is not high.
At the same time, Mao Geping's dual-brand strategy has no advantage in market competition, and from the perspective of the entire makeup market, overseas big brands and domestic cutting-edge brands have adopted a multi-brand strategy.
More notably, the training school's contribution to Mao Geping's sales was small, and according to the prospectus, its competitors were Dongtian and Jimmy.
Mao Geping, Li Dongtian, and Jimmy, once known as the "Three Musketeers of Chinese Makeup", Li Dongtian won an international reputation by digging out Lü Yan, and Jimmy was famous for giving Na Ying makeup in MTV's "Seeing Flowers in the Mist".
It is not perfect under the aura of stardom, after a beauty blogger with 235,000 fans on station b reported that there was a malicious charge in the Chongqing branch of Mao Geping Makeup School. The topic of "Mao Geping Makeup School Consumer Fraud" on Weibo was read 30.787 million times and discussed 22,000 times.
From the perspective of layout, Mao Geping really wants to build the brand to high-end. But an important fact is that Mao Geping's current market situation can be described as a back-and-forth attack, and his position on the domestic makeup track has been threatened. At a time when big brands and nascent brands are on the rise, no one can guarantee that fickle consumers will love a brand.
summary
With the rise of the post-80s and post-90s generations becoming an emerging consumer group and the "Z generation", makeup products have shown the characteristics of youth and fashion, and the overall penetration rate of the makeup industry has been rapidly improved. The rise of domestic makeup brands and the continuous improvement of people's recognition will further expand the market scale of China's makeup industry.
Makeup brand competition tends to be fierce, the product life cycle is getting shorter and shorter, if you do not pay attention to research and development, and then increase publicity and sales, in today's international big brand monopoly environment, Mao Geping to further develop the market is not small.
This also means that Mao Geping, a domestic makeup company, also has anxiety behind its listing, and its intention to impact the IPO may be to open up a wider sales channel of the brand. However, Mao Geping only relies on the power of capital to seek a breakthrough, there are still too many uncertainties, but in the single item, this may already be its optimal solution.
Sentence | IPO Catcher (ID:ipobushou)