Masks do not make money, water sheep shares are interested in the field of oral beauty?On May 30, a reporter from the Beijing Business Daily learned from the National Enterprise Credit Information Publicity System that Water Sheep invested in Beijing Qingyan Boshi Health Management Co., Ltd. (hereinafter referred to as "Qingyan Health") and became a new shareholder of Qingyan Health.
Industry insiders said that in this investment, Water Sheep shares are nothing more than the oral beauty brand "Dr. Qingyan" under Qingyan Health.The oral beauty market has indeed grown in size in recent years, and many large cosmetic companies have entered the market.On the one hand, the entry of Water Sheep shares is facing a lot of market competition. On the other hand, the policy supervision in this field is gradually tightening. In the future development, it is necessary to avoid touching relevant laws and regulations.
New arrivals in the
According to the information on the official website of the system, Qingyan Health has undergone an industrial and commercial change, and Water Sheep has become its new shareholder, with a shareholding ratio of about 4.3% and a subscribed capital contribution of RMB 1,258,945.
Qingyan Health was established in July 2019. Its business scope includes health consulting services (excluding diagnosis and treatment services), elderly care services, and nursing institution services.At present, Qingyan Health owns the oral beauty brand "Dr. Qingyan", also known as "Five Female Doctors". The main raw materials of this series of products are collagen peptides and elastin peptides.
According to data, "Dr. Qingyan" launched the first product collagen peptide vitamin C drink in July 2019, and achieved sales of millions in the following two months.
A reporter from Beijing Business Daily found that Qingyan Health has now opened a "youngdoctor flagship store" on Taobao, which sells "Dr. Qingyan" oral beauty products in a variety of flavors and formulas, including hyaluronic acid oral products.The price of a single box of products is around 200 yuan, and the highest-selling product currently has 8,000+ people paying, and the monthly sales volume is 10,000+.
Regarding the stake in the oral beauty product company, a reporter from Beijing Business Daily conducted a telephone interview with Water Sheep, but no reply was received as of press time.
Xu Xiongjun, a strategic positioning expert and founder of Shanghai Jiude Positioning Consulting Co., said that the daily chemical industry where Water Sheep is located has been sluggish in recent years. Coupled with the squeeze of emerging brands such as Perfect Diary and Huaxizi, Water Sheep shares have made profits. Not so optimistic.Therefore, for Water Sheep, it is urgent to find new growth points to achieve a breakthrough in profits.Oral beauty products have attracted more attention in recent years. With the upgrade of consumption, this field is very popular, and many companies follow the trend of investment.
"Water Sheep shares need to constantly find new performance growth points. The newly invested beauty oral products match their original consumer groups and have no impact on their original business, so the investment is used as a business supplement." Wu Daiqi, CEO of Shenzhen Siqisheng Company, added. .
According to public information, Water Sheep Co., Ltd. is mainly engaged in the research and development, production and sales of cosmetics. Its brands mainly include "Yu Nifang", "Little Maze", "Big Water Drop", "Yu MEN", etc. The product categories cover facial masks, water creams, etc. It has been dubbed "the first share of e-commerce mask" by the industry.
Gross profit margin is lower than peers
In fact, judging from the performance of Water Sheep, it has performed fairly well among A-share cosmetic companies.
The data shows that the revenue of Water Sheep in 2021 will exceed 5 billion yuan, which is 5.01 billion yuan.Among the A-share cosmetics companies, except for Shanghai Jahwa’s revenue of more than 5 billion yuan, the revenue of Proya, Bethany, and Marubi shares is not as large as that of Water Sheep.In 2021, Proya's revenue is about 4.6 billion yuan, Bethany is about 4 billion yuan, and Marubi shares are about 1.8 billion yuan.
But in terms of profitability, water sheep shares are at a low level.According to the financial report data, the gross profit margin of the daily chemical industry of Water Sheep is 52% in 2021 and 49% in 2020.Proya's gross profit margin in the daily chemical industry in 2021 is 67%; in 2020, the gross profit margin is 64%.The gross profit margin of the daily chemical industry in 2021 is 76%, and the gross profit margin in 2020 is 76%.Marubi's gross profit margin in the daily chemical industry in 2021 is 64%, and in 2020, the gross profit margin is 66%.
The lower gross profit margin also makes the revenue of Water Sheep Shares not small, but the net profit is far lower than the above-mentioned companies.According to the financial report data, in 2021, the net profit of Water Sheep Co., Ltd. will be 236 million yuan, and the net profits of Proya, Bethany, and Marubi will be 576 million yuan, 863 million yuan, and 247 million yuan, respectively.
In the opinion of industry insiders, the low gross profit rate of Water Sheep shares has affected the profitability of the company to a certain extent. For Water Sheep shares, it is necessary to continuously increase the gross profit rate, and it is good to launch high-margin products or invest in high-margin products by yourself. choose.
Public data shows that the gross profit margin of related hyaluronic acid oral beauty products can reach 90%-95%.In 2022, China's oral beauty market will reach 23.8 billion yuan.
It is worth mentioning that, based on high gross profit and expanding market scale, cosmetics companies such as Shiseido, L'Oreal, Bloomage Bio, and Freda have entered the market to launch oral beauty products.
Xu Xiongjun said that Water Sheep invests in oral beauty products, and there is certain uncertainty in the improvement of its profitability.First of all, oral beauty products appeared a few years ago, and they were not favored by consumers for a period of time. Now that they are making a comeback, it is still unknown whether they can become a bigger outlet.As the number of entrants increases, water sheep shares will inevitably face greater competition.In addition, oral beauty products are more stringent than other cosmetics in terms of market supervision, which is also a higher threshold for brands invested by Water Sheep.
In Wu Daiqi's view, water sheep shares face great challenges when entering the oral beauty industry. The current popularity of oral beauty products cannot be ruled out. It is not ruled out that this is related to the attention and promotion of capital, and this popularity may not represent vigorous consumption power.
Beijing Business Daily reporter Zhang Junhua
