Steadfast Medical's Cotton Age's vile ads draw ire, whether performance can be maintained with the help of the mask concept

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By Ding Yi

Out of Global Finance

On January 8, Stable Healthcare's (300888. SZ) vile advertisements for Cotton Age and other related topics hit the hot seat, as the ads were nastiness was quite high, and was scolded by netizens throughout the day.

In the video ad, a young woman was followed by a man, and then the woman "got wise" and pulled out the Cotton Era wipes to remove her makeup on the spot. Then the more "tawdry" operation appeared, after removing makeup, the woman became ugly, with a "vomit" vomit, tailing the man fled.

Taking women's personal safety incidents as the subject of the advertisement, and using the wrong solution as a guide, is the first point of error; attributing men's motivation for committing crimes to women's beauty and ugliness, and entertaining crimes, is the second point of error; and uglifying and objectifying women and insulting them, is the third point of error.

The terrible thing is that Cotton Tree Times does not realize where its problems lie. In the first comment response, they avoided mentioning that the video was a creative advertisement to highlight the cleaning function of the product, and that they were sorry if it made the viewer uncomfortable.

What? The idea? As a public company, and as a company that focuses on mom-and-pop products, there is a serious problem with the values orientation of the entire marketing department, the publicity department, and even the company as a whole.

After all, the protection of women is not "all-cotton", nor is it a cold response on paper.

Previously, in response to the Jingdong Finance, 360 borrowing, new oxygen and other online lending, medical and beauty industry vulgar ads, Xinhua News Agency has issued a short commentary entitled "for the sake of the flow of food, the three views are not correct, inferior and treacherous".

The article said, "In order to develop the sinking market, the use of persona to attract eyeballs, create false scenarios, implantation of baiting advertisements, with no regard for the relevant laws and regulations and the interests of consumers; there are also advertisements under the slogan of 'earthy video', the 'oddballs There are also some advertisements under the slogan of 'earthy video', taking 'strange' as 'popular', fighting for eyeballs with ugliness, and it seems that the more controversial it is, the more 'advertising benefits' it can realize. These vulgar marketing, claptrap under the surface is distorted value orientation, which is not 'earth' but 'evil', must be punished"!

However, the comments were all against the voice, after all, the cotton era is located in the health of the consumer goods market of life after a lot of power, there are constantly emerging brands rise. Cotton Age's main quality is also a downward trend year by year, the trend of high pricing and low price of the product is becoming more and more obvious, relying on the "circle of mothers" word-of-mouth marketing to enhance has become increasingly difficult, the competitive advantage is gradually weakening.

To women as the target group of the cotton era, really should think about it, where they are wrong.

The following is the parent company of the cotton era, steady medical.

The year 2020 can be said to be a year of great success for the stable medical. Because of the epidemic with the concept of masks landed on the GEM and share price high, but also in the performance of the performance has also had a small increase.

It is important to know that the road to market was very bumpy. As early as 2005, it was bounced around the U.S. capital markets, first the OTC system listing and the New York Stock Exchange, and finally landed on the Nasdaq in 2010.

After two years, the company was plagued by low valuation, poor liquidity and other problems, and was privatized and delisted in 2012. Subsequently, the spearhead pointed to the A-share market, and in 2016, it submitted a prospectus for the main board, which was rejected in the last meeting due to the doubtful matters of delisting from overseas listings and flaws in internal control.

In December 2019, the company again initiated a GEM listing. It is worth noting that this listing, steady medical speak of the stock market is different from the previous one, positioning itself in the mouthpiece medical enterprises. With the help of the GEM registration system reform, mask concept boom and other factors, stable medical successfully listed.

The prospectus shows that the main business of the stable health care, including medical dressings, healthy consumer goods, cotton spunlace nonwoven three plates, with "winner stable health care" and "Purcotton cotton era" two brands. We have two brands: "winner" and "Purcotton".

From 2017 to 2019, the company's revenue will mainly come from the healthy living consumer products represented by Purcotton Era, including non-woven products such as cotton soft towels, cotton surface sanitary napkins and cotton wet wipes, and textile products such as baby products, baby clothes and adult clothes.

From 2017-2019, Steady Medical realized revenues of 3.498 billion yuan, 3.839 billion yuan, 4.575 billion yuan; and realized attributable net profits of 427 million yuan, 425 million yuan, 546 million yuan.

Among them, the revenue of healthy consumer goods accounted for 62.37%, 62.93%, 67.18%. Healthy consumer goods mainly refers to its wholly owned subsidiary, the cotton era of the business scope.

Since nearly 70% of the revenue from cotton soft towels, wipes, mother and baby products, etc., self-proclaimed mask medical enterprise is a bit far-fetched, there is a suspicion of rubbing heat.

However, the mask is still very helpful for steady medical performance improvement. 2020 three-quarter report shows that the first three quarters to achieve operating income of 9.523 billion yuan, up 205.36% year-on-year; to achieve attributable net profit of 3.150 billion yuan, up 678.64% year-on-year.

But in the previous three years, steady medical performance growth has been in a bottleneck, 2017-2019 attributable net profit year-on-year growth of 4.29%, -0.59%, 28.64%.

The bottleneck in the growth of attributable net profit is, to some extent, related to Steady Healthcare's high selling expenses, which amounted to 838 million yuan, 1.041 billion yuan, and 1.356 billion yuan in 2017-2019, using mainly employee compensation, store rental fees, freight, commissions, and e-commerce promotional fees.

For steady medical, its online sales accounted for nearly 80%, with the cost of customer acquisition gradually increased, word of mouth is particularly important. Whether or not the crisis can be resolved, it will also be directly related to future product sales and other issues.

Perhaps it is due to the increasing cost of online customer acquisition, brand competition is fierce. Half of the fundraising capital of the stable medical IPO will be used for the construction of offline directly-managed stores, and 700 million yuan will be invested in the marketing network construction project, which lacks persuasive power.

At the same time, in the case of capacity is not saturated, the fund-raising funds in the 217 million yuan will be invested in high-end dressings production line construction, the effect of how to also need to be further verified.

Steady Medical Chairman Li Jianquan has also confessed that the growth rate of the business after the outbreak of the epidemic is really unimaginable, but it is also difficult to maintain such a high speed operation for a long time.

As of January 8, SteadyHealth's share price was 177.15 yuan per share, with a total market value of 75.55 billion yuan.

But what's most pressing at the moment is the vile advertising of All Cotton Times, right?