Under the impact of the regulatory storm and the decline in the growth rate of industry sales, beauty industry companies have recently released 2021 performance forecasts, showing the rather divided side of the industry. The performance of major brands Yunnan Botanee Bio-Technology Group Co.Ltd(300957) (300957. SZ), Shanghai Jahwa United Co.Ltd(600315) (600315. SH) continued to increase, boosting market confidence. At the same time, the performance of Fujian Green Pine Co.Ltd(300132) (300132. SZ) and Zhejiang Jinsheng New Materials Co.Ltd(300849) (300849. SZ) of upstream OEM and packaging materials has deteriorated significantly, and the plight of the industry can not be ignored.
Insiders told the associated press that the industry is currently undergoing a reshuffle, and a number of brands are expected to withdraw, which will also have an impact on the upstream OEM and packaging links. It is understood that the rapid growth of China's beauty industry in the past few years depends on the support of capital and live broadcasting. The industry price system is inherently unstable. When the industry enters the adjustment period, it is generally expected that the price war may intensify. It is pointed out that the lack of brand power will make domestic products weak in the competition with imported brands.
According to the social retail statistics of December 2021 released by the National Bureau of statistics, although the total sales of cosmetics of retail enterprises above Designated Size reached a record 402.6 billion, the annual growth rate continued to decline. In four months of the year, the year-on-year growth was less than 4%, which can be called the most depressed year of the cosmetics industry.
good business performance of head brand
As of the closing on January 27, Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , Shanghai Jahwa United Co.Ltd(600315) , Syoung Group Co.Ltd(300740) (300740. SZ) three brands have disclosed their performance, indicating that the head manufacturers still maintain a high outlook. The Q4 net profits of the three companies reached a new high in 2021, and the year-on-year and month on month growth rates also remained stable.
The net profit of Yunnan Botanee Bio-Technology Group Co.Ltd(300957) Q4 exceeded 465 million yuan, ranking the first, with a month on month increase of 416% and a year-on-year increase of 41.76%. Compared with the same period of last year, the growth rate is still stable. Some market participants pointed out to the financial associated press that they are optimistic about the further rise of Yunnan Botanee Bio-Technology Group Co.Ltd(300957) gross profit margin, and the company's high promotion expenses in hospital channels in the early stage. With the improvement of user recognition, it is expected that this part of profit space will be gradually released. Yunnan Botanee Bio-Technology Group Co.Ltd(300957) the survey summary shows that the company's coverage of OTC channels in China is less than 4%. The pharmacy channels are affected by centralized purchase, and the profit margin pressure is great. The demand for introducing cosmetics to improve profits has increased.
Shanghai Jahwa United Co.Ltd(600315) Q4 in 2021 improved significantly compared with the same period of last year, with a single quarter profit of 235 million yuan, an increase of about 74% month on month, nearly doubling compared with the same period of last year. For performance, Shanghai Jahwa United Co.Ltd(600315) indicates that it is mainly due to the rapid growth of e-commerce channels. Syoung Group Co.Ltd(300740) is more stable. Under the condition of stable growth rate, Q4 net profit is expected to exceed 100 million yuan in 2021.
Although the business performance of the head brand is brilliant, we still need to pay close attention to the gold content of the performance and whether there is price reduction sales.
The financial Associated Press reporter noted that in the past year, brands generally began to launch small-scale products. Although the prices of products with the same specifications still increased, the purchase threshold was significantly reduced. In addition, brands have also significantly strengthened their coverage of popular categories. Taking clean cotton products as an example, in the past, they were mainly dominated by European, American and Korean brands. Since 2021, a number of Chinese brands have poured in, and the pricing is generally half of that of Korean brands.
the situation in the upper reaches of the industry worsens
In contrast to the bustle of leading brands, the situation in the upper reaches of the industry has deteriorated significantly. Northbell, the head OEM, announced a loss in 2021, and the performance of head packaging manufacturer Zhejiang Jinsheng New Materials Co.Ltd(300849) (300849. SZ) also fell sharply. For the performance, both manufacturers point to the pressure of raw material cost and the change of industry competition pattern.
The financial Associated Press reporter learned that since the second half of 2021, the prices of commonly used cosmetics raw materials such as ethylene glycol and propylene glycol have increased significantly, the contradiction of limited import of some medium and high-end raw materials is more prominent, and the price of packaging raw materials has also increased significantly.
In terms of competition pattern, the low-end imported beauty makeup has declined significantly, and domestic brands have risen strongly, but the competition is also gradually "rolling inward", and the price reduction is gradually normalized. BeiLingFei, a beauty brand of LVMH group in France, Yidi house and yueshifengyin, a brand of amore The Pacific Securities Co.Ltd(601099) set in South Korea, have significantly shrunk in China. According to customs data, the number of imported cosmetics increased by only 5.2% year-on-year in 2021, a new low in recent seven years.
In addition, the implementation of the new version of the regulations on the supervision and administration of cosmetics, coupled with the guidance of the food and drug administration, also puts the industry under great regulatory pressure. The person in charge of an enterprise in Zhejiang told the financial Associated Press: "the current problems in the industry are really big, and some brands can't do it directly. However, our medical and beauty raw material business has maintained growth. It should be said that the functional skin care market is still developing steadily, and a number of enterprises without R & D investment have been eliminated." The enterprise is mainly engaged in medical and American raw materials and OEM business.
According to public reports, in 2021, more than 886000 beauty related enterprises (enterprises with enterprise name, business scope and brand name including cosmetics) were cancelled, with a year-on-year increase of 18%. Among them, the sales volume of relevant enterprises reached a peak in May and June, exceeding 100000.
