On January 20, Shanghai market supervision bureau announced the results of supervision and random inspection of inspection and testing institutions in 2021. Only 12 of the 120 institutions passed, of which 2 of the 5 cosmetics inspection and testing institutions were notified by name, with a failure rate of 40%.
Since the formal implementation of the regulations on the supervision and administration of cosmetics on January 1, 2021, the industry supervision has been strengthened.
Under the combined influence of regulatory tightening, covid-19 epidemic and other factors, new consumption, once pursued by capital fanaticism, is “cooling down”. Since the second half of 2021, the number and amount of investment and financing in the field of new consumption have decreased significantly, and a large number of new consumption enterprises have encountered financing obstacles. Public information shows that in the secondary market, the stock price performance of beauty brands such as perfect diary is poor after listing.
In this context, many investment and financing institutions predict that functional skin care products are still worthy of attention.
cosmetics consumption “cold”?
Since the second half of 2021, similar voices have been heard that “capital has given up makeup” and “capital does not look at beauty makeup”.
Industry insiders said that now this wave of consumption is cold, not too cold, but because the valuation is too high, investors can’t calculate their accounts. Calm down for a while, the valuation is reduced, and investors will come back. The target of returning investment must be the head of the preferred industry and have the gene of long-term profit growth. At present, there has been news outflow. Some securities institutions have launched a new round of research on Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , Bloomage Biotechnology Corporation Limited(688363) and other leading enterprises to plan bottom reading.
With the arrival of the first year of new regulations on cosmetics supervision in 2021, China’s cosmetics industry has officially entered the era of efficacy evaluation. According to the insight report on the trend of functional skin care products enabled by science and technology, by 2023, the market scale of functional skin care products in China will exceed 100 billion yuan, accounting for 22.9% of the overall skin care market. China’s functional skin care products have great development potential.
On this track, Imeik Technology Development Co.Ltd(300896) , Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , Bloomage Biotechnology Corporation Limited(688363) , Proya Cosmetics Co.Ltd(603605) , Shanghai Jahwa United Co.Ltd(600315) are still the industry targets favored by value investors in the A-share market, with a market value of 10 billion for a long time.
It is understood that Bloomage Biotechnology Corporation Limited(688363) 2021 only reached 1.2 billion yuan in revenue in the first half of the year, up 197.55% year-on-year.
Imeik Technology Development Co.Ltd(300896) relevant people told the reporter of Securities Daily that the new regulations will make skin care products form benign competition, require verification basis for safety and effectiveness, and more strict quality management. The management mode similar to medicine will abandon products focusing on publicity and confusing consumers’ cognition, and bring growth space to enterprises that pay more attention to product R & D itself.
international brands frequently overturn
At the same time, another indisputable fact is that in recent years, major international brands have repeatedly overturned and weakened in the Chinese market.
It is understood that many international brands were listed in the punishment announcement of Shanghai market supervision bureau last year. Famous brands such as Giorgio Armani and Dior have been fined hundreds of thousands or even millions for “producing and selling unqualified products as qualified products”.
Once upon a time, L’Oreal, Lancome, Estee Lauder and other international brands “occupied” the dressing table of Chinese consumers. Nowadays, many young people are no longer blindly superstitious about these international brands.
Consumer attitudes are changing. According to the survey report on public consumption behavior of foreign brands: six adults know that foreign brands have the phenomenon of “double standards at home and abroad”. More than four adults have made it clear that they will resolutely resist when they encounter them, seven adults have said that they will increase the proportion of domestic consumption, and half of them hope that foreign enterprises will break their habitual thinking and arrogance and unify internal and external standards as soon as possible.
With the upgrading of consumption and the upsurge of national tide, China’s functional skin care products show a strong rising trend. In terms of basic research, technology and product quality, domestic cosmetics brands have been on a par with international famous enterprises, and further occupy the minds of Chinese consumers. In the brand ranking of “tmall beauty category top30” launched by jumeili United solution consulting during the “double 11” in 2021, domestic brands such as Winona, Proya Cosmetics Co.Ltd(603605) , Natang, Bloomage Biotechnology Corporation Limited(688363) kwadi and Shanghai Jahwa United Co.Ltd(600315) Yuze of Yunnan Botanee Bio-Technology Group Co.Ltd(300957) are all on the list.
Dare to compete with international brands. The positive consumption state of domestic skin care products also gives the capital market great opportunities and confidence.
Some brokers said that the right trend, large imagination space and fast growth are several important considerations for investment. Functional skin care products just meet these points and build a strong valuation logic. In the short term, the stock price of skin care enterprises is affected by many factors, such as macro environment, industry policy, long short game and so on; In the long run, functional skin care enterprises represented by Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , Bloomage Biotechnology Corporation Limited(688363) , Proya Cosmetics Co.Ltd(603605) , Shanghai Jahwa United Co.Ltd(600315) will usher in more development opportunities.
Imeik Technology Development Co.Ltd(300896) the above people also told reporters that China’s functional skin care products have great potential. With the popularity of public awareness of functional skin care products, the penetration rate of e-commerce channels will be higher and higher.
Shen Meng, executive director of Xiangsong capital, also said that the liquidity of the market is too abundant and it is necessary to seek assets that can bring benefits. Under the current background of scarcity of high-quality assets, it began to enter the consumption field with relative imagination. The overall consumption boom has declined, but the consumer structure has also been significantly differentiated, and the consumption enthusiasm of young groups has decreased relatively less. Therefore, the consumer goods track around this group still has a certain imagination space.
