On April 22, Hangzhou Coco Healthcare Products Co.Ltd(301009) ( Hangzhou Coco Healthcare Products Co.Ltd(301009) . SZ) released the annual report for 2021. During the reporting period, the company achieved an operating revenue of 1.186 billion yuan, a year-on-year decrease of 27.44%. Among them, the revenue of adult care products and pet care products was 464 million yuan and 88 million yuan respectively, with a year-on-year increase of 8.07% and 13.86% respectively. During the period, the company’s independent brand business realized a sales revenue of 391 million yuan, accounting for 32.96% of the company’s operating revenue in the current period, a decrease of 12.05% over the same period of last year. Excluding the impact of income from epidemic prevention materials, it increased by 6.15% over the same period of last year.
Hangzhou Coco Healthcare Products Co.Ltd(301009) since its establishment in 2001, it has been focusing on the design, R & D, production and sales of personal health care products. The products sell well at home and abroad, forming a two wheel drive development model of “independent brand + ODM” focusing on adult incontinence products.
According to the annual report of the household paper and sanitary products industry issued by the household paper Committee, the company and the “reliable” brand ranked first among the manufacturers and brands of adult incontinence products in China in 2021 (mainly sorted by sales indicators). According to Euromonitor data, Hangzhou Coco Healthcare Products Co.Ltd(301009) ranked first in the market share of adult incontinence products in China in 2021.
deeply cultivate the adult incontinence products market
According to the data released by the National Bureau of statistics, at the end of 2021, the population aged 60 and over in China was 267.36 million, accounting for 18.9%, of which the population aged 65 and over was 200.56 million, accounting for 14.2%.
With the increasing degree of aging, the number of elderly patients is also increasing. Due to stroke, dementia, diabetes, prostate disease, bladder disease and other incontinence or mobility problems, the market demand for adult incontinence products has increased significantly.
In November 2021, the opinions of the CPC Central Committee and the State Council on strengthening the aging work in the new era was issued, which put forward the requirements of actively cultivating the silver economy, developing the aging industry and vigorously developing the new model and new business form of the integration of pension related industries. In February 2022, the State Council issued the national plan for the development of the cause of aging and the elderly care service system during the 14th Five Year Plan period. By deploying nine specific tasks, the State Council stressed the implementation of the national strategy to actively respond to population aging, focusing on accelerating the improvement of social security, elderly care services and health support system, and integrating the concept of active aging and healthy aging into the whole process of economic and social development. In particular, it is pointed out that in view of the needs of institutional elderly care, day care and door-to-door care, we will focus on the development of products in cleaning and hygiene, food and daily life, life care and other aspects, so as to improve the aging performance of adult diapers, nursing pads, ulcer rehabilitation products and other products.
With the increasing aging population, changing consumption concepts and increasing disposable income, the adult incontinence industry is developing rapidly driven by the increase of users and penetration.
Guoyuan Securities Company Limited(000728) in the research report, it is pointed out that China’s absorbent sanitary products are mainly divided into three segments: female sanitary products, baby diapers and adult incontinence products. The market scale of these three tracks increased from 50.24 billion yuan, 26.3 billion yuan and 920 million yuan in 2011 to 98.71 billion yuan, 68.36 billion yuan and 7.51 billion yuan in 2021, corresponding to the compound growth rate of 7.7%, 12.5% and 23.2% in the past decade, In 2021, the market share of absorbent sanitary products was 56.5%, 39.2% and 4.3% respectively. The adult incontinence products market accounts for a relatively small proportion, but the growth rate is the fastest in the past decade.
Hangzhou Coco Healthcare Products Co.Ltd(301009) in the segment of adult incontinence products, it entered earlier and has a high degree of focus. After years of development, Hangzhou Coco Healthcare Products Co.Ltd(301009) has become one of the most influential manufacturers of adult incontinence products in China, with product lines covering different levels.
promote comprehensive upgrade
According to the annual report, Hangzhou Coco Healthcare Products Co.Ltd(301009) has a provincial enterprise research institute. With many years of scientific research advantages and accumulated industry experience, the company has participated in or taken charge of many scientific research projects. It is a member of the medical grade sanitary products standard research group. In 2021, it participated in the formulation and release of 5 national standards and 3 industry group standards. The company’s R & D team has rich experience, has a solid R & D foundation and strong R & D ability, and continues to carry out product innovation. The team has accumulated a number of core technologies through independent research and development and has been successfully applied to product production. At present, the company has a total of 256 patents, including 45 invention patents and outstanding R & D ability. It has been rated as a national intellectual property advantage enterprise, one of the top 100 innovative enterprises in Zhejiang Province, and the second batch of specialized and special new “little giant” enterprises of the Ministry of industry and information technology.
In 2021, the company’s own brand product structure was continuously optimized, and a product echelon with good market prospects was formed. Based on consumer insight, the company has launched professional men’s absorbent towels, as well as light incontinence products, invisible absorbent towels and invisible travel pants designed for Asian women. Focusing on consumers, the company creates explosive products through market insight and accurate matching of needs, and continuously improves the accuracy of the crowd and the efficiency of recruiting new products.
In the field of ODM, the company adheres to the high-end ODM positioning of Keai factory, adheres to the optimization of ODM strategic customers, provides brand customers with a full range of and whole process services, and realizes the common growth and win-win cooperation between the two sides. In 2021, the company will select Chinese brands in the domestic market, and overcome the epidemic abroad to ensure supply.
In terms of marketing, the company continues to promote the transformation from product marketing to brand marketing, accumulate more user groups loyal to the company’s brand, optimize transformation and repurchase, and enhance the lifetime value of users.
In 2021, in order to further activate the brand power, Hangzhou Coco Healthcare Products Co.Ltd(301009) launched the brand upgrading plan, and recently released the brand-new super IP image “reliable and dynamic elderly”, which changed subversively in image, not only constructed the dynamic image of the new generation of Chinese elderly, but also showed the determination and confidence of the company to continue to cultivate the elderly incontinence care, elderly care and welfare industries. The “enjoy the old and live happily” of “dynamic elderly” is just in line with the government’s active advocacy of the concept of happiness, health and longevity for the elderly.
In terms of channels, the company has seized the development of new retail channel sales models such as e-commerce in the past few years, actively arranged online sales business and achieved great success. In 2021, the company will actively expand new channels such as live broadcast delivery and community group purchase to achieve greater market coverage and business growth. On the “double 11” day of 2021, the company ranked first in the sales list of adult diapers on tmall, Taobao, jd.com and pinduoduo platforms, and has won the sales champion of adult diapers in e-commerce channels for many consecutive years. In terms of offline channel expansion, according to the characteristics of the use scenarios of independent brand adult incontinence products, the company focuses on developing special channels, new retail and other fields, and arranges offline channels such as stores around the hospital, OTC, nursing homes and government procurement. Channel expansion is also one of the priorities of the company in the future. Tequ will bring more accurate consumers to the company.
In June 2021, Hangzhou Coco Healthcare Products Co.Ltd(301009) officially landed on the gem and opened a new development stage. The raised funds will be mainly used for the construction of smart factories, the upgrading and construction of technology R & D centers, brand promotion and replenishing working capital Hangzhou Coco Healthcare Products Co.Ltd(301009) said that with the implementation of fund-raising investment projects, especially the implementation of smart factory construction projects, the company will seize the development opportunities of the industry, closely follow the market demand, continuously expand the adult incontinence products market, continue to enhance the company’s market competitiveness, consolidate the industry position and enhance profitability.
