Blind box tycoon Bubble Mart enters the make-up track. Will the 'Last Wave Harvester' set off a new wave?

by:Ennas      2022-01-31
First, the blind box, then the Hanfu, and now we have to get involved in cosmetics. The business of the Bubble Mart Group is increasing, and the categories involved are becoming more and more abundant. Although there have been many negative reports on Bubble Mart recently, it still does not affect the overall market operation. Recently, Bubble Mart has established two subsidiaries that include cosmetics sales. At the same time, Bubble Mart’s Tmall store has launched a variety of makeup products. After entering the makeup track, this Bubble Mart is known as the Houlang harvester. Can you tell a new story on the makeup track? Cross-border Makeup Track According to understanding, there are 7 make-up products in the Bubble Mart flagship store on Tmall, including lipsticks, eye shadows, facial masks and other products. The unit prices of the products range from 40 yuan to 140 yuan. This time, Bubble Mart’s online cosmetic products are all co-branded products with local cosmetics brand Ju Duo. The brand is mainly targeted at student parties aged 18-24 or even younger. For the upper limit of the price of 200 yuan, the pricing is in line with This user group. In the store, at present, the best selling cosmetics category is Biqi Flying Orange Co-branded Milk Mud Matte Lip Glaze, with a monthly sales volume of 500+. Compared with the blind box category, which is easy to light, the cosmetics business seems not as good as expected, at least the sales volume is far less popular than the blind box category. In fact, Bubble Mart has long been intending to enter the cosmetics industry. According to Tianyan, recently, Bubble Mart has successively established companies related to cosmetics. On June 15th, Anhui Bubble Mart Trading Co., Ltd. was established. The legal representative is Zhou Peipei. The registered capital is 5 million RMB, and 100% of the shares are held by Beijing Bubble Mart Cultural and Creative Co., Ltd. The business scope includes the sales of daily necessities; the retail of clothing and apparel; the retail of cosmetics; the sales of vending machines, etc. On April 29, Beijing Bubble Mart Cultural and Creative Co., Ltd. wholly-owned and established Hangzhou Bubble Mart Trading Co., Ltd. with a registered capital of 1 million yuan. The legal representative is Li Shuangshuang. The business scope also includes cosmetics wholesale and cosmetics retail. The successive establishment of cosmetics-related companies for Bubble Mart has triggered speculations about its entry into the cosmetics track. According to a report from the Beijing News, Bubble Mart responded that some of the company's cosmetics currently have cooperation in brand, Bubble Mart IP and sales channels, but because of the large cross-border, it is unlikely to make cosmetics independently in the short term. In the future, it is not ruled out that some co-branded products will be sold through the channels of Bubble Mart. Bubble Mart is in the beauty business? As the first stock of the blind box, Bubble Mart is facing a series of troubles such as performance slowdown and intensified competition in the trendy play market. The financial report shows that the company's annual revenue in 2020 is 2.513 billion yuan, a year-on-year increase of 49.3%; adjusted net profit is 590 million yuan, a year-on-year increase of 25.9%. However, the growth rate of Bubble Mart is slowing down. In 2018 and 2019, the revenue growth rate of Bubble Mart is 225.5% and 227.2%, respectively, and 49.3% in 2020. Blind box entry barriers are low. From major manufacturers Tencent, NetEase to Youku, to new and cutting-edge brands looking for unicorns, and Rolife, more and more players are entering the trendy game field. The circles are vying to imitate. Bubble Mart, which started with a single product line, needs to find a new growth curve. Obviously, the beauty business is highly matched with Pamper Mart in terms of user circle and gender. Take this cross-border co-branded makeup brand Orange as an example. The brand mainly targets students who are 18-24 years old or younger. The core user portraits of Bubble Mart are mostly concentrated in the 18-35 age group. 18-24 years old accounted for 32%, 25-29 accounted for 26%. Girls accounted for 75%, mainly young white-collar workers in first- and second-tier cities, accounting for 33.2%, and students accounting for 24%. In addition, the total number of Bubble Mart members has increased significantly, but the contribution of membership growth has slowed down. As of December 31, 2020, the total number of registered members of Bubble Mart is 7.4 million, with an increase of 5.2 million, a year-on-year increase of 236%; of which, the sales contributed by members accounted for 88.8%, but the year-on-year increase was only 9.9% . If Bubble Mart continues to expand its product line with a high-growth membership base, it may be possible to increase the repurchase rate of members. Focus on the beauty track, can Bubble Mart get new business growth from it? From the perspective of financing, according to the statistics of China Beauty.com, 61 beauty companies have been invested in the first half of this year, with a total financing amount of nearly 9 billion. The makeup track can be said to be above the wind. In the constantly iterative consumer ecology, what cannot be ignored is the endless stream of players on the beauty track. The cutting-edge brands represent Perfect Diary and Huaxizi. At the same time, domestic beauty cosmetics are ushering in the market wave. In November 2020, the parent company of Perfect Diary, Yixian Electronics The company was listed in the United States. On its first trading day, its market value exceeded 12.2 billion U.S. dollars; in March 2021, Winona’s parent company Yunnan Betteni was listed on the Shenzhen Stock Exchange’s ChiNext, and its market value exceeded 76 billion U.S. dollars on the opening day. There are also foreign brands such as Sanxiyu and Dior. This means that Bubble Mart has been high-end competitors for the market since the time when it crossed over makeup. For cross-border makeup, Bubble Mart uses this to improve performance growth, which seems to be not an easy task. From trendy play to beauty makeup, whether Bubble Mart can finally break the circle needs to be verified by waiting time. After all, makeup cannot rely solely on the output of its own IP, but also requires high-quality and professional product precipitation.
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