“Ten years of dormancy, one burst”, this sentence may be more appropriate to describe one of the most eye-catching new stocks in 2021, Betteni (300957.SZ).
In the past 10 years or so, Betteni steadily incubated China’s No. 1 functional skin care brand-“Winona”, and took the lead in the golden track for sensitive skin. In 2021, Betteni quickly broke through 100 billion in market value within one month of listing, becoming the company with the highest market value in China’s cosmetics industry so far. Recently, in just three months after the A-share listing, Betteni launched a plan to go public in Hong Kong, significantly accelerating the internationalization and multi-brand layout, pointing directly to the blueprint of “China’s skin health ecological enterprise”. Such a fast pace of development and huge potential value are quite eye-catching.
On the market side, they also voted “yes” with practical actions. On June 18, Betteni’s stock price rose again, closing at 257.98 yuan per share, with a market value of 109.3 billion yuan.
(Source: Wind)
Looking further, how did Betteni establish the blueprint of “China’s skin health ecological enterprise”? What is the latest result?
There is room for multiplication in the core track, high repurchase rate and strong supervision help the strong to become Hengqiang
According to previous financial reports, Dermatology-grade skin care products, as Betteni’s basic products, have driven its performance to continue to increase. For the whole year of 2020, Betteni achieved revenue of 2.636 billion yuan, a year-on-year increase of 35.64%; net profit attributable to parent company was 544 million, a year-on-year increase of 31.94%. Among them, the revenue of cosmetics accounted for 90.07%. In the first quarter of 2021, Betteni’s revenue was 507 million yuan, a year-on-year increase of 59.32%; net profit attributable to the parent was 79 million yuan, a year-on-year increase of 46.5%.
Looking to the future, it is still an important yardstick for measuring Betteni’s development space. Affected by the popularization of market education in China’s new media and live broadcasts, China’s dermatology-grade skin care product market has grown rapidly. In 2019, the market size reached 13.6 billion yuan, a growth rate of 33%, far higher than the global market’s 4% growth rate. However, in the same year, the per capita consumption of dermatology-grade skin care products in China was only 1.2 US dollars, which is quite different from the mature markets in developed countries. Compared to South Korea’s 3.9 US dollars, the penetration rate of China’s dermatological skin care products market has at least three times the room for growth.
At the same time, this track has market characteristics such as high repurchase rate and strong supervision, which makes it easier to help the strong to stay strong. According to the “Sensitive Skin Care Products Market Research Report”, 92% of the population will repurchase sensitive skin care products, that is, consumers with sensitive skin have higher brand stickiness, which makes it more difficult for new companies to enter. Supervision is also stricter, especially the “Cosmetic Efficacy Evaluation Specification” will be officially implemented on May 1, 2021. The “Specifications” require cosmetic claims to have sufficient scientific basis. The establishment of industry standards has further improved the entry of sensitive muscles. Barriers are conducive to leading enterprises that regulate their operations. After a long period of academic and word-of-mouth accumulation, Betteni has become the leader in skin care for sensitive skin. In 2020, Betteni’s market share in China’s dermatological cosmetics market will reach 21.6%, surpassing major international brands such as Avène, Vichy, and La Roche-Posay. In terms of “Winona”, it became the only domestic brand on the top ten list of Tmall Double Eleven sales in the same year. The product repurchase rate in the past three years was about 30%, and the repurchase rate of international big-name skin care products was also Only around 20%. So there is reason to expect, It is difficult for players to replace Betteni’s market position in the short term, and it is expected to continue its high growth momentum under the logic of the strong. It also means that it has the capacity and space to match a larger business scale, and then incubate new industries around the “skin health ecology”. The multi-brand matrix has been progressing in an orderly manner, and the H-share listing will accelerate this process In terms of specific progress, in addition to the main brand “Winona”, Betteni also owns a number of sub-brands. Among them, “WINONA Baby” is based on the professional infant and child care track, “Acne Care” focuses on acne skin care, and “Beauty Answers” focuses on precision repair, anti-oxidation and anti-aging after medical art. Positioned as a dry skin care brand. In the 2020 annual report, Betteni also stated that in 2021, it will continue to implement a multi-brand plan through intensive cultivation and extensional acquisitions. Intuitively, Betteni’s multi-brand matrix on the one hand expands the scope of the audience and further opens up space for users. On the other hand, it fully meets the needs of users for segmentation and meets the shopping demands of young consumers. It may be based on the brand matrix. Improve brand exposure and favorability. and, The R&D, channels and other resources accumulated by Betteni earlier can be more fully utilized to quickly promote the development of the new brand. Take “WINONA Baby” as an example. This brand is the first brand in China to conduct in-depth exploration through clinical observation of children from newborns to two-year-olds. It was co-created by Betteni and National Pediatric Dermatologist Professor Ma Lin and other experts through medical research. Exclusive skin care products for babies and toddlers. At the same time, it is understood that “WINONA Baby” will use OTC pharmacies and online as the main channels, with core functionalities. This is highly overlapped with the channel network of “Winona”. At the same time, Betteni is advancing the channel construction and alliance cooperation of medical aesthetics institutions to lay a good foundation for medical aesthetics promotion. On this basis, with the advancement of H-share listings, the layout of the Bettenido brand ecosystem may be further accelerated. This move will undoubtedly help the Betteni and Winona brands to increase their overseas visibility. At the same time, Betteni can stabilize the equity structure through the “A+H” approach and achieve efficient acquisition of overseas high-quality brand assets. Betteni also publicly stated: “Whether it is to build a new brand, lay out a new track, or promote the market from China to the world, build an international brand, and go public in Hong Kong is a good choice for Betteni.” summary It can be seen that Betteni’s development path is to focus on the skin health segmentation track, seize the leading position, build a solid barrier, and then expand the industry and market around the “skin health ecology”, returning to the multi-brand strategy defined in the initial period. . As Betteni’s business performance continues to increase and gains high recognition from the market, the opportunity to return to the multi-brand strategy is gradually coming. In the future, Betteni may no longer be limited to cosmetics, but will become an industry provider of “skin health ecology”, opening up a broader space for growth
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