Kidswant Children Products Co.Ltd(301078) (301078)
Deeply cultivate the mother and baby market, and the “big store model” gives more possibilities for diversified services and expansion
After 12 years of development, Kidswant Children Products Co.Ltd(301078) has grown into an innovative parent-child family service provider driven by data and based on user relationship. From 2018 to 2020, the proportion of maternal and infant sales in revenue decreased from 92% to 88%; Over the same period, the proportion of mother and child services remained at about 3%, and the proportion of supplier services increased from 3.7% to 6.2%. One of the factors for the rapid development of non channel business is the “big store model”, (1) Space: make full use of the business area and upgrade from traditional display to “special area + service + entertainment”; (2) passenger flow: offline stores become a natural drainage channel for customers with service needs, which is both sufficient and effective; (3) extension: make multiple extensions based on the service platform to form a “similar alliance”.
With the help of data drive, we can achieve accurate insight of consumers and improve the efficiency of operation management
(1) Consumer side: through online app, applet, cloud POS and other user front-end systems, the company upgrades offline digital stores (such as door-to-door large screen design, etc.), completes user data collection in the process of service, establishes 400 + basic user tags and 1000 + intelligent models, and realizes accurate marketing for users’ accurate portraits; (2) employee side: childcare consultants through “integration of people and customers” “Cloud customer integration”, “Archimedes” and other management tools to carry out efficient and accurate customer service and management. Compared with the traditional sales model, with the help of digitization, a single childcare consultant can deeply cover the number of accurate customers to improve; (3) Management side: the company has built a technical architecture based on business and data dual middle platform system and supplemented by AI middle platform, which has improved the overall business operation efficiency.
Investment advice
The company has been deeply engaged in the maternal and infant industry for many years and has formed a unique business model of “goods + services + social networking”. Offline stores have become a natural channel for diversified service business development. Based on the sales of mother and baby products, the company expands customers in the form of child care consultants, increases customer stickiness and activity, and is conducive to the improvement of single customer income generation. Digital empowerment mobilized the enthusiasm of employees, increased the number of customers deeply covered by a single employee, and “reduced costs and improved efficiency” in a disguised form. We expect that the company’s EPS from 2021 to 2023 will be 0.39, 0.50 and 0.65 yuan / share respectively, corresponding to 50, 39 and 30 times of the current share price PE respectively. First coverage, with a “buy” rating.
Risk statement
The economic growth and consumption level have declined, the expansion and development of new stores are less than expected, and the industry competition has intensified.
