October Mommy: What Is The Trouble Of "Sheep"?

In June 24th,

Issued IPO prospectus, to A shares listed.

As the news came out, many people focused their attention on their declining earnings and profits data.

The public prospectus clearly shows that the operating income of October 2015 has declined by 1% compared with the previous year, while operating profit has declined by 50%.

In such a case, a clear listing of signals has attracted many criticisms.

In this regard, vice president of October October, vice president of Wei Da exclusive.

Online response, last year's income and profit decline is affected by the traditional Chinese "sheep year", the proportion of maternal decline, many mothers and infants

All of them were affected.

In the first half of the year, the revenue of the first half of the year has increased significantly. They are also trying to further expand the brand by deepening the whole channel development through the distribution of pregnant women skin care products and other sub categories.

He predicts that October will be listed on the market in 2017.

Is it a sheep disaster?

October October's public prospectus shows that its 2015 annual operating income is 270 million 939 thousand and 500 yuan, compared with 2014 yuan 273 million 813 thousand yuan, the overall decline of 1%; on the operating profit column, 2014 years reached the peak value of 30 million 381 thousand and 400 yuan in the past three years, and in 2015 dropped to 12 million 695 thousand and 800 yuan, the overall decline of nearly 5 percent.

Is the industry as a whole cold? Actually not.

According to the relevant data, the total retail sales of Chinese maternity products market increased from 31 billion 320 million yuan in 2010 to 49 billion 230 million yuan in 2014, with an average annual compound growth rate of 12%.

The total retail sales of China's maternity products market will reach 99 billion 260 million yuan in 2019, and the annual compound growth rate will reach 15.1% in the next 5 years.

The whole maternity products industry is still in the stage of rapid growth, and the market potential is huge.

And what is the cause of "Waterloo" in October?

The National Bureau of Statistics announced recently that the number of births in 2015 was 16 million 550 thousand, 320 thousand fewer than in 2014.

"The domestic market will be greatly influenced by traditional ideas, and 2015 is the year of the sheep".

Wei said that the traditional concept of sheep is not suitable for children's influence. Last year, the sharp decline of newborn greatly affected the overall sales of the industry.

In fact, this is not the first time that mommy has touched sheep.

The last sheep year was in 2003, and sales and net profit also declined under the dual influence of sheep and SARS.

Compared with 12 years ago, the response measures of October mom have been mature, and the decline of 1% is totally acceptable. "During the period, many new products such as cosmetics have been added" to stimulate purchase demand.

"The year of the sheep will directly lead to a decrease in the number of pregnant women. Therefore, the pregnant women's products such as October Mommy will suffer a certain impact. On the contrary, the effects of milk powder and complementary foods will be much smaller."

The maternal and child industry observation indicates that the impact of different categories is different. With the full implementation of the second child policy after the Spring Festival, the market demand for mother and infant products is also rising.

Pregnant women's skin care brand brand COO said, "in 2016, a lot of maternity related categories sold more than 20% of the policy growth."

On the other hand, the decline in net profit is also related to the substantial increase in management fees. The October Ma's prospectus shows that the management cost of October 2015 was 51 million 810 thousand yuan, while in 2014 it was only 36 million 750 thousand yuan, an increase of 40.98% over the same period last year.

The management expenses are mainly used for the standardized operation of Finance and management, making the company develop in a more healthy and pparent direction.

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Line school UNIQLO, offline learning ZARA

At present, the main sales mode of October is divided into two categories: physical stores (offline) and the Internet (i.e. online).

Among them, the offline part adopted the mode of direct sales and supplemental sales; the online part was divided into direct sales mode (including sales through third party e-commerce platform, such as Taobao, Jingdong, vip.com, etc., and through self built "October mom online mall" sales), and joined the sales mode (online franchising mode).

From the earnings data, we can see that in 2014 and 2015, the proportion of channel income in October and 2015 is more likely to be 1:1.

"This is mainly related to our plan for the whole channel, which needs to integrate online and offline," Wei said. At present, the electricity supplier is efficient and fast selling, so we need to slowly enlarge the electricity business. However, we still can't lose the line. It should be used as a way to improve the effect, quality and enhance the rate of return. Therefore, the balance between online and offline is the best.

For today's hot concept of the whole channel, there seems to be some maverick in October.

"We have always adopted the online and offline two inventory mode, online we learn the basic model of UNIQLO sales, and learn ZARA online," Wei said.

Many clothing businesses are talking about their own online and offline inventory, but Wei think that a stock is not scientific, for traditional clothing enterprises, distributors, franchisees, channels of conflict will be very difficult to balance, because of different objectives, the goal of action is often inconsistent, or even contradict each other.

"We feel that the whole channel is to get through the flow of information and the flow of people, which is reflected in the channel of consumer choice, rather than the entire channel of goods. The same price of Coca-Cola in the supermarket, one price in the countryside, another price in the bar, because the channel is different in price", but such an experience will only be criticized by users. Therefore, Wei Da feels that the access to the whole channel should meet the needs of users of different channels.

"Will you buy a tuxedo in the electricity supplier? You will definitely choose the next line, because you need to try it," Wei said.

Rush to eat the new blue sea -- cosmetics for pregnant women

According to a survey conducted by Yi Guan think tank in July 2015 for 3000 women in the first and second tier cities of China (the sample structure is unpregnant: pregnancy is produced: pregnant =5:3:2), 37.67% of the women will buy pregnant cosmetics during pregnancy. All women believe that safety is the primary consideration for the purchase of cosmetics for pregnant women; for consumption expenditure, the proportion of women in the consumption area of 201-400 yuan is the highest, reaching 47.35%, and the proportion of women in the 401-600 yuan interval is 35.84%.

The above survey results show that at present, the awareness of maternal consumption of cosmetics for pregnant women in China needs to be improved, and the market for pregnant women's cosmetics will increase considerably in the future.

According to statistics, the total retail sales of cosmetics for pregnant women in China increased from 820 million yuan in 2010 to 1 billion 420 million yuan in 2014, with an average annual compound growth rate of 14.7%.

In the future, it will benefit from sustained and steady growth of China's economy, increased disposable income of residents, upgrading of consumption, promotion of women's family status and release of love and beauty. The cosmetic industry will usher in a period of rapid growth.

Not long ago, mother and baby vertical electricity supplier baby tree also invested in maternal and child care brand "planting", this market can not be underestimated.

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We can see from October 10's prospectus that the cosmetic series used by pregnant women has withstood the test of the market and has a larger increment.

From 11 million 285 thousand and 100 yuan in 2014 to 17 million 99 thousand and 700 yuan in 2015, the proportion increased from 4.12% to 6.31%.

At the same time, the market competition is more and more intense. On the one hand, the international brand begins to pour into the Chinese market. On the other hand, the domestic segmentation of pregnant women cosmetics brand is gradually emerging.