Produced by Red Star Capital Bureau Research Institute
Under the wave of new domestic products, domestic cosmetics are constantly rising. According to the financial report, the operating performance of domestic cosmetics companies such as Polaiya (603605.SH) and Betaine (300957.SZ) has continuously climbed to new heights in recent years.
At the same time, however, the performance of Marubi Co., Ltd. (603983.SH), another old domestic brand, declined instead of increasing, and the business pressure of enterprises increased sharply.
According to the corporate financial report,In the first half of 2022, Marubi achieved an operating income of 817 million yuan, a year-on-year decrease of 6.48%; Judging from the data of the semi-annual report in the past five years, corporate revenue has also been obviously under pressure.
↑ Source: Corporate Financial Report, Red Star Capital Bureau
The performance of net profit is even worse. The semi-annual report shows that in 2019 and after, the growth rate of net profit of Marumi shares returned to the mother continued to decline, and negative growth began in 2021 and 2022, and the net profit returned to the mother decreased by 29.46% and 38.11% respectively.
↑ Source: Corporate Financial Report, Red Star Capital Bureau
In addition, according to the market intelligence data of Magic Mirror, among the sales of "618" Tmall domestic skin care products in 2022, Polaiya ranked first with sales of 569 million yuan; Marumi, on the other hand, ranked 22nd with a sales volume of 50,598,600 yuan. Marubi, which was once comparable to Polaiya, is now placed in a number of domestic skin care products, and its performance is not bright.
There are indications that Marumi shares have obviously fallen behind in this wave of domestic products.
In terms of the secondary market, as of the close of October 28, 2022, the closing price of Marubi shares was 28.56 yuan/share, with a total market value of 11.465 billion yuan; Compared with the high of 91.10 yuan/share in May 2020, the gap is far away.
Marubi shares, why did you fall behind? The Red Star Capital Bureau will discuss the product end and channel end of the enterprise in detail.
(1)
In terms of products, the revenue is single, and the business is green and yellow.
At present, Marubi shares mainly have three brands, namely Marubi, Chunji and Love for Fire. Among them, "Marumi" has always been the main source of revenue for enterprises.
In 2007, Marubi Co., Ltd. launched elastin eye cream, shouting the classic TV slogan of "bounce off the crow’s feet"; Since then, enterprises have been eating the old money of "Marubi" eye makeup.
The financial report shows thatIn the first half of this year, the revenue of Marubi brand was 692 million yuan, down 16.83% year-on-year, accounting for 84.88% of the total revenue of the enterprise; In the first half of 2021, the revenue of Marubi brand was 832 million yuan, accounting for 95.48% of the total revenue of the enterprise.
In other words, the performance of Marubi shares has fallen sharply now because of the serious decline in sales of main brands. At the same time, the two brands "Chunji" and "Love Fire" have limited pressure bearing capacity, which makes it difficult for enterprises to hide their decline.
↑ Source: Corporate Financial Report, Red Star Capital Bureau
As far as the "Marubi" brand is concerned, although it has been developed for more than ten years, the positioning of the product itself is still vague and embarrassing.
First of all, at present, the price of "Marubi" eye cream is generally between 348-498 yuan. For users with strong spending power, consumers prefer overseas high-end brand products such as L ‘Oreal and Estee Lauder. For low-and middle-consumption groups, the pricing of Marubi brand has no advantage in the face of explosive eye creams such as Betani and Polaiya.
Secondly, because Marubi focuses on eye care, compared with other care products such as facial care, the market share of eye cream is not large, and there is a problem of low ceiling.
According to the market intelligence data of Magic Mirror, during the June 18 event in 2022, the sales of eye cream products on Tmall platform was 773 million yuan, down 11.1% year-on-year, ranking ninth in the sales of TOP15 leaves in the beauty industry.
↑ Source: Magic Mirror Market Intelligence
On the one hand, the market space of eye cream is limited, and on the other hand, competitors are caught between the left and right. Under the double pressure, Marubi shares also began to seek the second growth curve of the enterprise early.
In 2007, Marubi Co., Ltd. launched the brand "Chunji" with the concept of nourishing skin with natural ingredients, positioning popular skin care, and targeting young women; In 2017, the company invested in the make-up market to add the brand of "Love Fire", positioning itself as a brand with light and luxurious Korean make-up and providing make-up products and services.
However, these two brands have not yet come out.
The first is the "Spring Festival". Before 2019, Marumi shares took "Spring Festival" as their key force point. Zhou Dongyu, Wu Jinyan and other celebrities have been invited to speak for them. The explosive variety shows "Let’s Love" and "Confess Now" also have the figure of "Spring Festival". However, the "Spring Festival" has never been able to open the market.
On March 12th, 2022, Wu Jinyan attended the meeting of new stars in the Spring Festival. According to vision china
But the financial report shows thatFrom 2016 to 2018, the revenue of "Chunji" brand accounted for 14.11%, 13.03% and 9.06% respectively, which contributed to the company’s revenue all the way down.
In this year’s semi-annual report, Marumi shares did not separately disclose the revenue of "Spring Festival". However, according to the performance estimates of Marumi and Love Fire, the revenue of "Spring" in the first half of this year did not exceed 25 million yuan, accounting for less than 5% of the revenue.
The "spring discipline" that was once pushed has now completely declined.
Judging from the performance of another brand "Love Fire", the financial report shows that "Love Fire" achieved revenue of 99 million yuan in the first half of this year, accounting for 12.08% of the total revenue. In the short term, Marumi shares may have pinned their hopes on "love fire".
However, from the product point of view, the hot products of "Love Fire" are only "PL can’t see/rub off the series of makeup", and the brand still has problems such as over-reliance on a single explosion, and the public awareness of "Love Fire" brand itself is not high.
Therefore, it is still too early to say that "Love Fire" will become the "revenue baton" of Marubi. After all, the brand itself has not gained a foothold in the market at present, and there is still a long way to improve brand awareness and create continuous explosions.
In general,The main reason why Marubi’s performance did not increase but decreased was that the sales of core main brands plummeted, and the other brands were not connected; On the cosmetics track, the excessively single revenue structure is doomed to make the company’s ability to resist risks weak.
(2)
From the perspective of channels: missing social e-commerce dividends
In addition to the unsuccessful layout of the product matrix, Marubi shares also have no advantage in channel development.
All along, Marubi’s sales model is mainly based on distribution model, supplemented by direct sales and consignment model. Distribution mode refers to the company’s downstream sales through distributors, such as daily chemical stores, department store counters, beauty salons and other online stores except the company’s direct online store channels; The direct selling mode mainly includes direct selling department store counters and direct selling online stores represented by "Marubi Tmall Flagship Store"; In 2016, Marubi Co., Ltd. began to develop a consignment model, mainly through Watson’s and RT Mart’s consignment company "Chunji" brand products.
According to the prospectus, when Marubi shares were listed, there were nearly 200 dealers and more than 15,000 retail outlets nationwide; In 2016, 2017 and 2018, the distribution income of enterprises accounted for 87.99%, 86.54% and 87.65% of the main business income of that year respectively.
However, the channel change of domestic cosmetics industry will soon follow.
According to Euromonitor data and Minsheng Securities Research Report, from 2010 to 2016, the beauty and skin care industry market in China was mainly driven by traditional e-commerce channels, and the marketing methods were mainly hidden TV commercials and celebrity endorsements. Since 2017, it has been mainly driven by social and live e-commerce channels, and the marketing method has changed to KOL (note: key opinion leaders. The concept of marketing is usually defined as: people who have more and more accurate product information, are accepted or trusted by the relevant groups, and have greater influence on the purchasing behavior of the groups) or KOC (note: key opinion consumers, corresponding to KOL). Generally speaking, it refers to consumers who can influence their friends and fans and produce consumption behavior. Compared with KOL, KOC has fewer fans, less influence, more vertical and cheaper advantages, and uses social media to achieve viral spread.
In other words, after 2017, the sales channels of China’s cosmetics industry, social e-commerce began to grab traffic dividends with some large e-commerce platforms, and the problem of Marubi shares was that they did not seize the channel dividends of this wave of social e-commerce.
The beauty of pills in hindsight,It was not until 2020 that online income exceeded offline for the first time. In the whole year of 2021, the online revenue of Marubi shares accounted for 59.54% of the total revenue, and the proportion of traditional channels was still as high as 40%.
↑ Source: Corporate Financial Report, Red Star Capital Bureau
Compared with competitors, this "progress" of Marubi’s online channel may be more different.
The financial report shows that the proportion of online income of Polaiya jumped rapidly from 43.57% to 85.43% in 2018 -2021; Bettini’s online income accounted for 82.34% in 2021.
For Marubi, which started to spread word-of-mouth and plant grass with the help of Xiaohongshu, Weibo, Tik Tok and other platforms in 2021, obviously it missed too many opportunities.
(3)
The dividend fades, is there any chance?
Back to the marketing level, in the environment of social e-commerce, the era when enterprises can cover a large number of consumers by focusing on phenomenal TV programs is gone forever.
This also forces enterprises to carry out digital transformation and upgrading and carry out refined marketing.
On August 27th, this year, the use of raised funds and the realization benefits of raised funds investment projects disclosed by Marubi Co., Ltd. showed that the original raised investment projects "marketing network construction project" and "smart retail terminal construction project" were changed to "marketing upgrade and operation headquarters construction project".
According to the financial report, in the first half of 2022, the sales expenses of Marubi shares were 360 million yuan, a year-on-year increase of 14.30%; Among them, the advertising promotion fee reached 256 million yuan.
According to past data,From 2018 to 2020, the sales expenses of Marubi shares are all around 530 million yuan; By 2021, the sales expenses of Marumi shares have soared to 741 million yuan.
May 13th, 2021, Shanghai, China Meibo Fair, Marubi shares, Chunji skin care products. According to vision china
It can be seen that in the past year or two, Marubi shares are reorganizing their marketing layout on a large scale, but can Marubi shares really regain their confidence through marketing overweight?
On the one hand, judging from the actual revenue of Marubi in 2021 and the first half of this year, the increase in marketing did not bring corresponding sales results. In other words, users don’t seem willing to pay for it.
On the other hand, it is also worth noting that with consumers’ richer knowledge of social marketing, the conversion rate of social media marketing is gradually decreasing, and the marketing effect is not as good as before.
In the highly competitive beauty industry, it seems reasonable for Marubi to continue to invest in advertising promotion, but the key to the problem lies in how to lay out and put it in.
This is even more challenging for Marubi, which missed the market dividend and relied too much on the traditional marketing mode.
summarizeGenerally speaking, Marubi’s falling behind is not caused by a single factor: the core shortcomings such as single product, poor business, online weakness, brand imbalance, etc., all of which will continue to expand business contradictions and eventually form the current predicament.
Red Star Journalist Liu Mi
Editor Ren Zhijiang Editor Guo Yu
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