The blind box is completely on fire! Estimated at 46 billion, 78 times oversubscribed

 The blind box is completely on fire! Estimated at 46 billion, 78 times oversubscribed

On the evening of November 22, the HKEx documents showed that bubble Mart had passed the HKEx hearing. Yesterday (December 1), bubble Mart officially opened the public offering, planned to complete the pricing on December 4, and officially listed on the Hong Kong stock exchange with 9992 as the security code on December 11.

Before the IPO, the main institutional investors behind bubble Mart included venture workshop, Sequoia China, zhengxingu innovation capital, Huaxing new economic fund, black ant capital, Fengqiao capital, etc.; Tu Zheng, founder partner of Fengqiao capital, and he Yu, partner of black ant capital, served as non-executive directors.

Why bubble Mart?

Bubble Mart can become the first stock in the fashion industry, relying on considerable revenue and net profit. According to the prospectus, in 2017, 2018 and 2019, the annual revenue of bubble Mart was 158.1 million yuan, 515.5 million yuan and 1683.4 million yuan respectively, and the net profits were 1.6 million yuan, 99.5 million yuan and 451.1 million yuan respectively. During the two years, the growth rates reached 225.4% and 227.2% respectively. In the first half of 2020, the total revenue of bubble mart is 817.8 million yuan, which is 50.5% higher than that of 543.4 million yuan in the same period of last year, and the net profit is 141.3 million yuan and 113.6 million yuan in the same period of last year. Thus, bubble Mart has achieved profit growth for more than three years in a row, and there is no sign of falling back or slowing down.

Blind box is the main revenue force of bubble Mart. In the three years from 2017 to 2019 and the six months ending June 30, 2020, the sales revenue of blind box products of bubble Mart was 91.4 million yuan, 359.6 million yuan, 1359.2 million yuan, 402.4 million yuan and 688.7 million yuan, respectively, accounting for 57.8%, 69.9%, 80.7%, 74.0% and 84.2% of the annual revenue of bubble Mart in the same period. This years double 11, bubble mart with blind box as the main product type sold 142 million yuan on the same day.

Why is a small blind box so magical? Its hard for people who dont play blind boxes to understand why some people will spend money to smoke blind boxes, and what they like cant be bought directly? But it is precisely because of the unknown nature of blind box that it is favored by young consumers. People who buy blind boxes never know whether they have been struggling for a long time and finally choose what they like. It is this emotion that makes countless people fascinated. In order to get the dolls they want, every consumer will spare a lot of money. Blind box has become the fastest growing and most expensive hobby of players after 1995. Last year, nearly 200000 consumers spent more than 20000 yuan on blind boxes, among which the hardcore players even spend millions a year!

It is the unknown of the blind box, coupled with a variety of eye-catching IP, which makes bubble Mart obtain huge revenue, which lays a solid foundation for its impact on IPO.

Molly, Molly?

After the news of the launch of bubble mart, some people think that bubble Mart started with Molly series products. People always like the new and hate the old. When everyone is tired of Molly series products, will bubble Mart have no future? How to keep a high market value?

Wang Ning has previously said that IP has a life cycle, which is undeniable. Some people can be popular for one year, others may be popular for five years, and some products that are classic enough in their own design, or can continuously provide high-quality content with their own creative ability, may last 20 years. But I think the key point is not whether a single IP can survive, but the life length of the entire industry ecology. Take Molly for example. It has been 14 years since it was born this year. It is not a very new thing. The chaoplay industry is not a new industry. What makes bubble Mart different is that we spend more energy to build a healthy platform and industry ecology. .

Anxin international also pointed out that the life cycle of fashion cultural products is relatively short, bubble marts performance growth currently relies on the brand IP Molly, and the market attraction of IP library is lower than expected.

Therefore, the company must strengthen its own IP operation capability and IP life cycle. Bubble Mart also said that in the future, it plans to recruit talented designers to join the internal design team, enhance the ability to explore internal IP, increase the number of its own IP, so as to further expand its IP library.

Apart from the internal worry of relying on a single IP, bubble Mart also has external trouble. When we all know that chaoplay brand makes money, we will play the routine of bubble mart and compete with it.

In fact, blind boxes are not the only ones in the bubble Mart family these days. According to the cbnd report, the top 10 brands of blind box sales are bubble mart, tokidoki, Sony angel, Ali, changcaoyan, littleamber, Wuhuang Wanshui, Luo Xiaohei, little Ma Baoli and linefriends. Not only are there many blind box brands, but also some listed companies are involved. Gaole said on the interactive platform that the company has developed Disney tsumtsum dessert house blind box series, rainbow house blind box series and Mulan military blind box series, and has launched them to the market. In addition, the famous innovative products that just landed in the capital market have also entered the market, and the prices of blind box products are very competitive. Source: China fund daily Author: Wu Yuqi, editor in charge: Zhong Qiming_ NF5619