Pao Mart creates a 'paqu' community to create a 'B station' in the fashion world

In the blind box economy, high-quality IP products are the core that determines their sales. Therefore, the ability to gather high-quality upstream creative resources is the key to determining its future development. Looking at the trendy IP economy from the development of the Internet platform-From the perspective of the development of the top Internet platform, high-quality resources on the supply side are the cornerstone of its long-term development. For example, the development of Taobao and Tmall benefited from abundant merchant resources to drive users to gather and form a network effect ; Meituan can continue to grow, and the local promotion team that helped it acquire merchants in the early stage is indispensable; the rapid break of the video community B station is inseparable from those high-quality UP owners. The Matthew effect of realizing IP is significant, and players with advantages on the IP side will benefit. Bubble Mart has 85 IPs, among which the popular IP Molly contributed 456 million yuan in revenue in 2019, accounting for 26% of total revenue, and accounting for 73% of its own IP revenue. The importance of IP is self-evident. Source: Internet As of 2019, the market share of Bubble Mart is 8.5%, and the total market share of CR5 is less than 23%. The industry is in a highly fragmented stage. We believe that due to the significant Matthew effect of Chaowan’s IP sales, the overall industry concentration will further increase in the future, and companies with first-mover advantages on the IP side will benefit. Paqu community effect blessing, creating a trendy play world station B: Bubble Mart created a Paqu community to lay the foundation for its platform-based development: 1) From a user perspective: users not only share and purchase trendy games, but also spontaneously change Derivative activities such as baby, photography, and second-hand trading have formed a unique circle of fashion lovers and communication methods; in a sense, it is similar to that of the early B station gathering with a unique two-dimensional culture at the time, which was still a small group of two-dimensional users. All of them are unique circles formed based on a certain hobby, which is conducive to cultivating user stickiness and increasing product repurchase rate; 2) From the perspective of IP operations: IP selection is essentially a choice for designers to continue to create high-quality capabilities, but The ability to gather designer resources is the foundation, and a good creative community is a weapon to attract high-quality creators. The success of station B is inseparable from up hosts who continue to upload high-quality PUGV videos; similarly, a large number of original fashion designers and users in China have gathered on Paqu, providing IP creators with a high-quality publicity channel and communication with friends platform. In terms of competition, the market share of CR5 in China's trendy play industry in 2019 was 8.5%/7.7%/3.3%/1.7%/1.6%, and Bubble Mart ranked first. The company's competitors include Dreams, MedicomToy, 52Toys, Twelve Dong Culture, etc. Dreams and MedicomToy are established Japanese toy companies. Among them: 1. Dreams has been deeply involved in the field of box and egg/blind box toys, but most of its content is animal series and other ornaments, which have a certain collection value, but lack the trend of IP and the cooperation of top artists. 2. MedicomToy has an early fortune, [email protected], but the price is more expensive, which is different from the specific location of PaoMa. 3. 52Toys is a Chinese local fashion brand. Compared with Bubble Mart, the target customer group is lower in age. It also launched a gashapon lottery model, which has higher customer stickiness. 4. The Twelve Buildings culture is similar to Bubble Mart. Its core competitiveness lies in its excellent IP operation and mining capabilities. Relying on cartoon characters such as Changcao Yan Tuanzi, it has realized low-cost and high-traffic conversion. Compared with competitors, it can be seen that the core advantage of Bubble Mart lies in the industry's top IP operation capability + omni-channel sales network + high stickiness of blind box members. It is easier to obtain top trend resources under the superimposed leading position, and it is easier to obtain top trend resources after listing and fundraising. Platform construction is accelerated, and the company's moat is expected to be further strengthened. Source: Soochow Research Institute, Sina Finance, Essence Securities Research