Ma Yun once said, "If you catch a woman, you will catch consumption."
Recently, the giant creature that submitted its listing application to the Hong Kong Stock Exchange once again showed the profiteering side of the medical and beauty industry.
At the end of 20021,Juzi Bio just completed the first round of external financing with a valuation of about 20 billion yuan. Investors include star institutions such as Gaochun, CICC and Junlian.
Big-name investment institutions swarmed into the market and were called "Xiangbobo". The biggest strength of giant creatures is the ridiculously expensive medical beauty mask.
The two core brands of Juzi Bio are Fumei, which focuses on "medical beauty mask", and Kelijin, a high-end skin care product. From 20 19 to 202 1, Juzi Bio achieved revenue of 957 million yuan,165438+90 million yuan and 1552 million yuan respectively, with gross margins reaching 83.3%, 84.6% and 87.2% respectively.
Behind the high gross profit margin is the price of a mask close to 40 yuan, and the cost is 2 ~ 5.
Not only is it a giant creature, but the value can be doubled by adding the word medical beauty in front of the mask. According to the data of Zhongtai Securities, the average gross profit margin of mechanical mask, namely medical beauty mask, is 77%-83%, which is about 30% higher than that of ordinary cosmetic mask.
After all, for consumers who buy medical beauty masks after completing the medical beauty project, they have spent thousands of surgical expenses, and there is a high probability that they don't mind spending hundreds of dollars to buy medical beauty masks as follow-up auxiliary treatment.
For consumers who yearn for beauty, but don't have the budget to go to medical beauty institutions, a "medical beauty mask" of several tens of dollars suddenly appears to be extremely cost-effective. Even if there is no immediate effect, the word "medical beauty" is enough to bring enough psychological compensation.
If Giant Bio is successfully listed, it will become the "first mask of medical beauty" and fill a gap in the medical beauty track.
However, two listed predecessors, Fuerjia and Chuanger Bio, have encountered obstacles, exposing all kinds of hidden worries under the surface of high profits in the industry-the concept of "medical beauty mask" is fraudulent, the marketing expenses are increasing, and the dealer system is over-dependent. All these have formed the common problems of medical and aesthetic enterprises, and the industry has reached the time of transformation.
What is a "mechanical mask"?
Medical beauty mask, or mechanical size mask, is sought after, which also stems from the popularity of the concept of cosmeceuticals.
Cosmeceuticals, that is, medicinal cosmetics, are an exotic product, which was put forward by American dermatologist Albert Kligman and defined as "a new product with both cosmetic characteristics and some pharmaceutical characteristics". However, this definition has not been internationally recognized.
In the United States, France, Germany, Australia, Japan and other developed countries, the development of cosmeceuticals has been accompanied by the development of the pharmacist industry, and a clear, stable and highly recognized industry environment has emerged.
With the rise of overseas purchasing and grass-planting bloggers, after 20 16, cosmeceuticals have gradually become the top flow of skin care and beauty, and related topics such as "Japanese cosmeceuticals must be bought" and "ultra-detailed French cosmeceuticals raiders" have also become hot topics in major content sharing platforms.
When consumers buy cosmeceuticals, they often have high psychological expectations for the ingredients contained in them and think that they should be more effective than ordinary cosmetics.
This psychological expectation was quickly catered to by the market. According to users' feedback, the research group indicated that in 20 17-20 18 years, the domestic skin care and beauty market showed a trend of pursuing the combination of "medicine" and "makeup" by any means. Many brands exaggerate efficacy propaganda and try to label themselves as cosmeceuticals or medical skin care products.
However, in June, 20 19, the State Administration of Pharmaceutical Products clearly stipulated that concepts such as "cosmeceuticals" or "medical skin care products" did not exist at the level of national laws and regulations and should not be used for publicity.
However, the brand quickly differentiated and evolved into a variety of new sayings to adapt to the new regulations of the Food and Drug Administration, changing the soup without changing the medicine, and endorsing it with medical efficacy. Medical beauty masks, or mechanical masks, caught fire when standing at the tuyere.
Medical beauty mask is a kind of medical equipment, which provides a suitable wound repair environment for patients who have undergone photoelectric and injection medical beauty surgery. Therefore, the word "machinery" is used as a symbol in the product license label, so it is popularly called mechanical name cover.
The general facial mask belongs to the category of ordinary cosmetics, marked by the word "makeup".
Compared with cosmetic brand products, mechanical brands are relatively rare because of their higher aseptic standards in the production and transportation environment and their access to skin with wounds. They are sold in major hospitals and regular beauty hospitals.
This increases the value of products in the eyes of consumers: "All products that can enter the hospital are guaranteed."
But in fact, in order to meet the gentle and calm standards, the components of the mechanical mask are simpler, mainly collagen or hyaluronic acid. For consumers who pursue general beauty effect, the value of mechanical mask is not greater or even smaller than a good beauty product.
Zhongtai Securities industry average data shows that the production cost of "mechanical brand" masks is about 1.4- 1.6 yuan, the ex-factory price of the brand is about 6- 10 yuan/piece, and the terminal sales price is 15-40 yuan/piece; The production cost of cosmetic mask is about 0.95 yuan/piece, the ex-factory price of brand is about 2.7 yuan/piece, and the terminal sales price is about 5- 10 yuan/piece.
The gross profit margin of mechanical mask brand is 77%-83%, which is about 30% higher than that of cosmetic mask, and its profitability is much higher.
This is because the complicated registration procedures of the Food and Drug Administration, which requires the machine name, have raised the hidden cost. The products are mainly sold by offline institutions such as hospitals and beauty institutions, and the price is naturally higher after the price increase.
Narrow use and high price. In fact, "mechanical masks" have been online in hospitals, beauty salons and other institutions for more than ten years, but they have never been known.
Marketing expenses skyrocket, and if the market does not advance, it will retreat.
Around 20 18, factors such as cosmeceuticals being sought after, Tmall supporting the big health sector, and live e-commerce marketing were superimposed, and mechanical brand masks suddenly opened for online sales, and the number of "mechanical brands" confused by ultra-high gross profit margin also increased.
According to the users' situation, the research group indicated that in 20 19, the market share of medical beauty products of Ali e-commerce platform accounted for 83.79%.
Some brands with "mechanical name" masks (medical dressings) will vaguely name other products, and endorse all other products with the "mechanical name" of one product to increase the overall unit price.
For example, Fu 'erjia, which used to be the first market share of patch products, is the representative product of "Fu 'erjia Medical Sodium Hyaluronate Repair Patch", which belongs to the second management standard of "Mechanical Name". In addition, there is another product, which is "Fuerjia sodium hyaluronate repair film". The names of the two products are almost the same, and the packaging styles are almost the same, but the latter is a cosmetic logo.
The price of mechanical repair patch is 128 yuan (5 pieces) per box, and the price of beauty repair film has also increased, reaching 1 18 yuan (5 pieces) per box. According to Zhongtai Securities's calculation, the gross profit margin actually exceeds that of mechanical products.
What's more, after introducing other medical devices such as medical needles that are easier to register, it also introduced mask products of the same brand, vaguely indicating that it is a mechanical brand.
Some brands simply look for factories that meet the aseptic standards of mechanical names. A medical beauty agent in the industry said that the raw materials of OEM products in such factories are basically only the simplest hyaluronic acid and water, but what they want is nothing but merit.
A typical player whose IPO is blocked because he stepped on the brand thunder is Fuerjia.
Fu 'erjia, registered in June of 20 1 17, had not produced masks before seeking listing in February of 20021,and all the products were manufactured by Harbin Sanlian Factory and then sold by OEM.
With the listing plan, vulgar began to solve the problem of independent production capacity. It acquired Beixing Pharmaceutical, a wholly-owned subsidiary of Harbin Sanlian, which was just established in June 2020, at a price of 570 million yuan. The paid-in capital of the latter is only 35 1 10,000 yuan.
Moreover, after Beixing Pharmaceutical changed hands, it still mixed production workshops and machines with Harbin Sanlian, and even used people's entrances.
Furjia is equivalent to buying a regular production capacity with 570 million yuan. This not only shows the vulgar desire for listing, but also shows that it is "not bad for money."
In the mouth of the industry, Fu Erjia is the first "smart person" in the industry to open online marketing channels and exchange "5 million marketing fees for 50 million revenue".
Fuerjia not only became the first medical mask co-operated by Li Jiaqi, but also sponsored popular variety shows such as "Romantic Travel of Wife 4". With the help of e-commerce platform and social platform, offline B-side professional channels and online C-side mass channels have been opened, achieving high user conversion efficiency.
Fulga in the marketing circle occupied the market. In the 20 19 medical skin repair dressing market, Fuerjia (mask brand) ranks first with sales of 1900 million yuan, accounting for 37% of the market. Chuangfukang, a subsidiary of Chuanger Bio, and Kefumei, a subsidiary of Juzi Bio, tied for second place, with a market share of 8%, less than a quarter of that of Fuerjia.
In 2020, the Food and Drug Administration issued a document to crack down on the chaos of mechanical masks, requiring brands to use regular medical dressings. KOL of popular science has also begun to popularize related concepts, making the "mechanical name" gradually fade away.
Under the big waves, the brands that make up the number are gradually eliminated, the industry concentration is enhanced, and the head competition becomes fierce.
The sales expenses of Fuerjia (Company) are 20 18, 20 19 and 2020 are 2137.03 million yuan,15 million yuan and 265 million yuan respectively, of which the promotion expenses are 2.34 million yuan. The sales expenses of Juzi Bio-20 19 to 202 1 were 93.788 million yuan, 654.38+58 million yuan and 346 million yuan respectively. The sales expenses of Chuanger Bio-20 19 to 202 1 were 654.38+35 million yuan, 654.38+150,000 yuan and 654.38+120,000 yuan respectively.
Except for the sales expenses of Chuanger Bio, the sales expenses of Fuerjia and Juzi Bio both increased exponentially.
However, while the revenue of the other two companies increased, the total revenue of Chuanger Bio in 20021year was 240 million, which was 20.79% lower than that of 303 million in 2020.
More than three mask companies, Huaxi Bio's annual sales expenses in 2002/kloc-0 were close to 2.44 billion yuan, up by 12 1.62% year-on-year, while its net profit in the same year was only 780 million yuan.
Betani, who specializes in sensitive skin care products, announced after the IPO that 45.04% * * * 6.91100 million yuan of the raised funds will be invested in marketing channels and brand building projects.
Higher and higher sales expenses have dragged down the formation of net profit. From 20 19 to 202 1 year, the net interest rate of megafauna was 60. 1%, 69.4% and 53.3% respectively, which decreased year by year.
Nevertheless, in this marketing war, the brand has been in a situation of not advancing or retreating, and it is imperative to transform to online direct sales.
Edge marketing, it is difficult to get rid of dealer dependence?
Before the e-commerce platform channel was opened, WeChat business contributed most of the revenue to many medical and beauty brands.
According to the biological prospectus of Juzi, from 20 19 to 20021year, the income from its sales to distributors was 764 million yuan, 860 million yuan and 862 million yuan respectively, accounting for 79.9%, 72.2% and 55.6% of the total income, and there was a great concentration risk.
Among them, the income from Xi 'an Chuangke Village, the largest customer, accounted for 52.2%, 49.3% and 29.3% of the total income of Juzi Bio in the same period respectively.
It is this Xi 'an Chuangke Village that once made this giant creature questioned by pyramid schemes.
Yan Jianya, Chairman of the Board of Directors of Juzi Biology, the husband of founder Fan, was the sole shareholder of Anchuangke Village, and then transferred his equity to Zhang Bing, then director of Biology, and, then general manager.
Today, both of them are no longer in the list of directors and executives shown in Giant Bio's prospectus, and Xi 'an Chuangke Village is only regarded as the main customer of Giant Bio in the interpretation.
However, it left traces in the enterprise investigation. The profile of Xi 'an Chuangke Village still shows that it is a wholly-owned subsidiary of Giant Bio and is committed to creating a brand-new e-commerce operation model for Giant Bio.
This so-called brand-new e-commerce operation model is full of doubts.
According to the introduction of anti-MLM rescue and anti-fraud alliance, the maker cloud platform released by Xi 'an Maker Village adopts hierarchical proxy mode. If you want to be the lowest agent, that is, the maker, you need to pay 12000 yuan, you can enjoy 3.5% off the price of the goods, and you have the right to invite others to join.
For every new customer, old customers can get a commission of up to 2400. After reaching a certain level, such as Commissioner and community director, you can draw commissions from all offline sales.
About 5,000 people have identified Kelijin as suspected of pyramid selling in the Zero Kun Financial Risk Inquiry and Reporting Center.
In addition to the largest platform maker cloud business, small dealers of giant creatures are all over the WeChat circle of friends.
After searching for medical beauty brand agents on WeChat, there will still be many official WeChat accounts of product distributors, recruiting lower-level agents.
In the case of more and more severe crackdown on pyramid schemes, these dealers will no longer develop multi-level subordinates, and the same dealer often docks multiple brands.
For example, if you pay 198 or 598, you can become an agent for more than 800 kinds of skin care products, and get the goods at two different stall prices, so you don't need to stock them yourself. Dealers can deliver goods directly and professionally, and will not disclose the private information of agents.
Taking Fu Mei products as an example, the agency price is 30%~40% cheaper than Tmall flagship store.
Or in the name of becoming a single brand VIP, charge VIP fees and get goods at a low price.
This new agency model is still developing, and the price order is chaotic, which also brings the risk of vicious competition among dealers.
Therefore, Giant Bio is still fully transforming into direct selling.
It is worth mentioning that in the Maker Shangyun App, the domestic brand Fufumei brand did not appear in the product list, and the main product was Kelijin, a subsidiary of Giant Bio.
Unlike Fu Mei, Kelijin takes the high-end cosmetics route, and the whole line is cosmetics. It is another core brand of Juzi Bio, with 60 SKUs 60, and the unit price is 109-680 yuan, slightly higher than that of Fu Mei.
In the year of 20021,the two contributed 9 1.7% of the revenue to the giant creature.
However, the sales changes of the two in the past three years have shown different trends.
In the past, Fu Mei, which was mainly sold by offline medical institutions and pharmacies, reached 897 million yuan in 20021year, three times as much as in 20 19, and contributed 57.8% to the total sales.
In 20 19, Kelijin's revenue contribution exceeded 50%, and the sales in 20021year accounted for only 33.9%.
It can be seen that Juzi Bio is really trying to promote the transformation from online distributors to online direct sales.
According to the prospectus, from 20 19 to 202 1 year, the gross profit margin of the distribution model was 8 1.3%, 82. 1% and 85.0% respectively, while the gross profit margin of online direct sales always exceeded 90%.
However, under the direct selling mode, the marketing expenses that the company has to bear have doubled.
In contrast, during the reporting period, the R&D expenses of Juzi's biology were 65,438+065,438+04,000 yuan, 65,438+03,386,5438+04,000 yuan and 24,954,000 yuan respectively, accounting for 65,438+0.2% of the income.
Faced with more and more "smart" consumers, if the giants continue to focus on marketing and neglect research and development, sooner or later, they may not be able to support the price of a mask in 40 yuan.