Hyaluronic acid bibcock, Bloomage Biotech and Freda

 

In recent years, the upsurge of "hyaluronic acid skin care products and medical beauty" has pushed the industry leading enterprises Bloomage Biotech and Freda to consumers.

As a world-renowned bioactive material company, hyaluronic acid and other bioactive materials produced by Bloomage Biotech are well known in the industry. Some insiders have revealed that many large-scale enterprises such as Estee Lauder, Oreal, Unilever, and Coca Cola are all used hyaluronic acid raw materials produced by Bloomage Biotech.

 

In the industrialization level, the fermentation yield of Bloomage Biotech acid reached 12-14g / L, which was far higher than the industry optimal level of 6-7g / L reported in the literature, and was in the leading level in the world. The main quality parameters of its pharmaceutical grade products, such as nucleic acid, endotoxin and other impurities, are 1 / 50 and 1 / 20 of the values specified in the European Pharmacopoeia international standard respectively, and the product quality is far beyond the international standard.

 

Bloomage Biotech began to enter the terminal market in 2016, and in 2018, it began to adjust its business strategy, on the basis of maintaining the advantages of raw material business, it began to pay attention to the terminal product business. In addition to the comprehensive layout and implementation of multi brand strategy, it also focused on promoting online channels. It has formed a functional skin care brand matrix composed of Biohyalux, Aqualuna, QuadHA, MedRepair and other skin care brands.

In 2018, Bloomage Biotech's production of hyaluronic acid has reached nearly 200 tons, and its raw materials have been sold to SK-II, L'Oreal, Estee Lauder and other international first-line brands in more than 40 countries and regions, such as the United States, European Union countries, South Korea and Japan. In 2018, the total sales volume of hyaluronic acid raw materials in China accounted for 86% of the global total sales volume, while Bloomage Biotech accounted for 36%, which means that more than one third of the hyaluronic acid products in the world are related to Bloomage Biotech. China is the largest producer and distributor of hyaluronic acid.

 

In the process of localization of hyaluronic acid, Freda is an unavoidable existence. As a large production base of ophthalmic drugs in China, Freda has focused on the research and development of hyaluronic acid for 37 years, and has a number of patented hyaluronic acid ingredients. It is the undisputed leader of China's hyaluronic acid industry. Freda is not only the world's leading R & D, production and application base of hyaluronic acid, but also the exclusive supplier of hyaluronic acid raw materials for many international first-line cosmetics enterprises.

 

As a leading enterprise of hyaluronic acid in China and a pioneer and leader of hyaluronic acid "stoste" skin care products, Freda beauty has been specializing in hyaluronic acid products for more than 30 years. Now it has created a product matrix with high cost performance, firmly occupying the market of mid-range skin care products.

 

Freda's skin care brand "Rellet", which specializes in hyaluronic acid skin care, has won the top two positions of the most favored China cosmetics brand by virtue of its deep strength and excellent reputation; Dr.Alva, who focuses on skin microecology and scientific skin care, takes two "sales first" achievements in probiotics mask and water milk market. Freda's another skin care brand, Shreda moisturizing mask, made 30 million sales of single product, and made remarkable achievements in 618 in 2020.

 

Driven by the "2030 healthy China" series of national strategies, health consumption is further upgraded, and functional foods with efficacy and nutrition are favored by more and more people. In particular, on January 7, 2021, China Health Commission officially approved sodium hyaluronate as a new food raw material, which means that China will enter the era of localization of hyaluronic acid food, and sodium hyaluronate will become an important oral beauty raw material alongside collagen, which will undoubtedly inject a new force into China's functional food industry.

 

In this new opportunity, Bloomage Biotech has launched hyaluronic acid snacks "Healing", including chewable tablets, soft candy, American ginseng drink, bird's nest drink and potato chips, as well as hyaluronic acid drinking water brand "Shuijiquan", while Freda has launched a number of hyaluronic acid sodium drinks. The status of Bloomage Biotech and freda in China's hyaluronic acid industry is equivalent to that of Yili and Mengniu in China's dairy industry.

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China's tampon market with great potential

 

According to statistics, about 42% of women in the United States use tampons, and 70% of women in Europe use tampons. However, in China, only 1.9% of women use tampons in 2016. Sanitary napkins are still the top of the list of Chinese women's menstrual hygiene products, followed by liquid sanitary napkins, safety pants and other products.

 

It's hard to see tampons on the shelves of supermarkets in China, as well as in first tier cities. People like sanitary napkins most, in recent years, liquid sanitary napkins have become popular. For tampons, some women may not know the existence of such products, or women who have heard of tampons may not be able to use them correctly. Most women find it hard to accept the way it is used. In addition, the price of tampons is relatively expensive, which is why Chinese women prefer sanitary napkins.

 

In fact, as early as 1989, a tampon named Tampax began to enter the Chinese market. Because people were relatively conservative at that time and were not willing to accept such new things, Tampax finally withdrew from the Chinese market. After being acquired by P & G in 1997, P & G quietly launched Tampax in Nanjing market in 1999, and finally withdrew from China market again in 2000 due to unsatisfactory sales. In 2017, Tampax entered the Chinese market for the third time, due to social media publicity, changes in people's thinking, and the diversification of cross-border e-commerce purchasing channels, Tampax saw hope for tampons in China. Although we don't know how Tampax will end this time, there is an obvious change that Chinese women's acceptance of tampons is improving.

 

Women's sanitary products mainly include sanitary napkins, pads, tampons and menstrual cups. Today, sanitary napkins occupy an absolute leading position in the whole market of women's sanitary products, whether in China or other countries. In the Chinese market, the penetration rate and share of sanitary napkins have exceeded 95%, which means that it is very difficult for the sanitary napkins market to grow again.

 

In this case, it seems that it is difficult to improve the number and use of female hygiene products. At this time, the opportunities of the industry come from two aspects: one is the upgrading of the stock market, and the other is the emergence of new alternative categories.

 

In recent years, many sanitary napkin brands have launched their own high-end products. For example, P & G's "always" liquid sanitary napkin has been recommended and sold by China's popular Taobao anchor Viya and Li Jiaqi. In addition, it has been shared and exposed by many users on many social media in China, and has won high popularity, upgraded new products bring women a more comfortable experience.

 

Although the high-end sanitary napkin upgrades the traditional sanitary napkin in terms of material and sense of use, it does not solve the pain point of sanitary napkin, and the emerging tampons can change the feeling of using menstrual care products.

In recent years, the concentration of China's sanitary napkin industry has increased steadily. In 2018, the top four enterprises in China's sanitary napkin Market are HengAn, unijia, P & G and Jingxing. The sanitary napkin industry in developed countries is relatively more concentrated, in 2018, the Cr4 of sanitary napkin industry in the United States and Japan were 76.7% and 98.2% respectively. In contrast, the concentration of sanitary napkin industry in China still has a large space to improve.

 

According to the statistical of the tissue paper committee, the compound average growth rate of China's women's sanitary products market from 2013 to 2018 reachs 9.7%. According to the conservative forecast of the constant growth rate of 9.7%, the market scale of China's sanitary napkins (including pads) will exceed 90 billion yuan by 2023, and the market scale of China's women's sanitary napkins (including pads) manufacturing industry will reach 99.5 billion yuan by 2024.

 

In general, there is still much room for development in China's tampon market.

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Pinduoduo's success, these factors are indispensable

 

Pinduoduo, established in September 2015, is a third-party social e-commerce platform focusing on c2m gruop shopping. By initiating group buying with friends, family and neighbors, users can buy high-quality goods at a lower price and experience more benefits and fun. The social concept formed through communication and sharing has formed Pinduoduo's unique new social e-commerce thinking.

On April 9, 2020, APP Annie, a third-party data platform, released the list of global popular applications in the first quarter of 2020, showing that Pinduoduo Mau (monthly active user) has surpassed Taobao. In recent years, Pinduoduo has developed rapidly. So why is Pinduoduo developing so fast?

 Cheap commodity price

In terms of price, the price of goods on Pinduoduo platform is much cheaper than that on Taobao and JD, and the number of goods purchased is less, you can also enjoy the package mail service, and sometimes there is a situation of 1 yuan second kill, which attracts a large number of consumers in the third and fourth tier cities.

 In addition, Pinduoduo will spend more than 10 billion yuan to subsidize the big brands in the whole network, including apple, Xiaomi and other brands. On the basis of the cost price, Pinduoduo will pay for the subsidy. From clothes, shoes, skin care products to TV, air conditioner and refrigerator, there are many things to participate in the activities, so as to attract more consumers. And they guarantee: all the goods marked with "10 billion subsidy" are authentic. Guarantee measures are: unite China Life Insurance launched a genuine insurance, false one compensate 10. In general, the 10 billion subsidy is the price after the platform makes profits, which directly reduces the price to attract consumers.

Group buying and distribution

Group buying mode, many people join this group buying activity the price can be preferential. Many consumers in the group buying, in order to make this activity success, they will reshare these information to Wechat, which has also played a great role in Pinduoduo's user growth.

Distribution mode, in short, when you become a distributor, if users buy goods from you, you can get a rebate. From this point of view, it seems that the users on this platform are also businesses. For this kind of distribution mode, users only need to move their fingers to complete things, most of them are willing to do.

Tencent's support

Another reason why Pinduoduo can be promoted on a large scale on Wechat is that users can invite friends to help bargain so that they can get the goods they want for free. This kind of welfare greatly improves the participation of users. From the listing of Pinduoduo, in terms of shareholder structure, Huang Zheng, as the founder, accounts for 50.7% of the shares, while Tencent, as the second largest shareholder, accounts for 18.5%. It is not difficult to find that the development of Pinduoduo over the past three years is inseparable from the Tencent platform, and a large number of users place orders through Wechat. Because of the existence of Tencent, Pinduoduo's customer acquisition cost is lower. Pinduoduo's rapid development is inseparable from the strong support of Tencent, the second shareholder.

It took 10 years for JD, 8 years for Vipshop and 5 years for Taobao to go public. Pinduoduo was established in April 2015 and listed in July 2018, which took only two years and three months.

Pinduoduo's success has a lot to do with its preemption of the sinking market. There are not many people in China who can spend more than 50000 yuan online a year, most people may spend thousands of Yuan online, with an average of 1000-2000 yuan. And Pinduoduo provides good and cheap goods, which can just meet their basic needs of daily consumption.

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How much do you know about wechat?

 

Wechat is the most popular social app in China, Chinese use wechat to communicate with each other, share life with friends, and consolidate feelings. When asked what kind of software wechat is, the simple answer is that it is a tool for chatting, but is that really the case?

Now wechat is far more than just a chat tool. In fact, its status has far exceeded QQ and become an operating system. Chinese people spend more than 40% of their time on wechat every day.

Wechat mainly has the following functional modules:

Moments

When there is no wechat news for the time being, you may habitually browse your wechat moments to see what interesting things your acquaintances and friends have shared during this period. For individuals, the significance of moments is to record personal life and share personal interests. However, for wechat business, the moments is a huge pool of private traffic and a good place to make money. In 2013, some shoes and bags with clear price tag began to appear in the moments, which can be said to be the earliest prototype of wechat business. With the popularity of wechat business’ s facial mask, all kinds of wechat businesses have sprung up. 2014 has become a spring in the development of wechat business.

Official account

The official account of WeChat is a commercial platform for media operators and a platform for users to understand commercial products. The official account is the window to the outside world that many enterprises must have. A good official account can create a very positive brand image; Some promotional activities, marketing hotspots, can be directly informed of users in the official account, and customers who follow relevant official account must be better than those who don’t follow; The official account can often do some small activities, such as prize winning quiz, and user contribution, etc., to raise fans' attention to the company; Another function of official account is the public relations window of enterprises, especially after the official account is certified, which is more convincing, it can set up an authoritative image in the minds of users, about some products knowledge and information, it is easy to for customers to inquire.

 Mini program

Wechat mini program is an application that can be used without downloading, but also an innovation. After nearly two years of development, a new wechat mini program development environment and developer ecology have been constructed. Wechat mini programs are also an innovative achievement that can really affect ordinary programmers in China's IT industry over the years. More than 1.5 million developers have joined in the development of wechat mini programs. The number of wechat mini programs exceed one million, covering more than 200 industry segments, with 200 million daily users. Wechat mini programs also support subway and bus services in many cities. The development of wechat mini programs has brought more employment opportunities. In 2017, 1.04 million people were employed by wechat mini programs, and the social effect has been continuously improved.

Channels

Channels is a platform for recording and creation, which allows users to record and share life and ideas through videos or pictures. Different from the moments, the content of momnets can only be accessed by friends, while the content released in the channels can be accessed by the public. In other words, the channels belongs to a window to understand others and the world.

In addition to these functions, users can also directly carry out shopping, payment and other activities on wechat. It is because of the convenience of wechat that it is easy to penetrate into people's basic necessities of life. Now to meet new friends or new customers, people all say "add a wechat" or "I'll scan you", instead of "what's your mobile phone number?"

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Do Chinese people also use olive oil?

 

Olive oil is the natural oil extracted from olive fruit, known as "liquid gold", "Queen of vegetable oil" and "Mediterranean manna".

Among the major olive oil producers, Spain accounts for about one third of the world's total, Italy accounts for one fourth, Greece accounts for one fifth, and other oil producing countries include Tunisia, Turkey, Syria, Portugal, France, Egypt, etc. Italian olive oil production ranks behind Spain, but its number of oil mills is several times than that of Spain, so it becomes the largest olive oil exporter.

For a long time, soybean oil, palm oil, rapeseed oil and peanut oil have dominated the consumption of edible oil in China, accounting for nearly 90% of the total consumption. Olive oil, corn oil, sunflower seed oil and tea oil have a small proportion. Olive oil is generally purchased by rich families. For ordinary families, as a kind of high-end edible oil, a bottle of imported 250ml olive oil costs 39.9 yuan, rapeseed oil costs 14or16 yuan/kg and olive oil costs 100or120/kg, which is several times higher than other kinds of edible oil. In addition, olive trees are rarely planted in China and are rarely used to extract oil. Chinese people are used to eating soybean oil, peanut oil and other vegetable oils, and it is difficult to accept the new taste in a short time.

But with the rapid development of social level, people's living conditions become better and better, spiritual and material culture is more and more rich, while enjoying the welfare brought by the country's prosperity, so people are more and more pursuing their own health and longevity, it is the modern people's attention to physical health, more and more people learn health knowledge, and pay more and more attention to health.

First of all, we should pay attention to health preservation from the beginning of eating. For example, we should eat vegetables made of olive oil, organic rice, organic vegetables, and so on. In addition, TV, media and other media spread the benefits of olive oil, so the society has started to use olive oil as a nutrition and health preserving food.

With the change of people's consumption consciousness and the deepening understanding of olive oil, olive oil is welcomed by more and more consumers. Data shows that China's annual consumption of olive oil is about 80000 tons from 2015 to 2017, and it continues to increase at an average annual rate of more than 12%. The annual consumption of olive oil is expected to reach about 100000 tons. The import tariff of olive oil is 10%, and China's import volume of olive oil will be 54000 tons in 2019. Most olive oil brands are imported from Europe, with Spain dominating the market share of more than 80%.

At present, the leading brands in China's imported olive oil market include Olivoila, Betis, MUELOLIVA, BORGES, Andasaludsia, FILIPPO BERIO, AGRIC, BELLINA, Carbonell, etc. Six of these brands are from Spain, two from Italy and one from Greece.

With the development of science and technology, new varieties will appear in the next few years, and consumers will have more choices. From the current market situation, several large edible oil manufacturers in China have started to sell more nutritious and healthy edible oils such as camellia oil, walnut oil and olive oil.

Generally speaking, from the perspective of market consumption, although China's nutrition and health edible oil market is in its infancy, it caters to the trend of people's higher and higher pursuit of health and nutrition. Therefore, nutrition and health edible oil will have broad market prospects and will be a new bright spot in China's edible oil market.

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How New Zealand skin care brand——Geoskincare became so popular in China?

 

The brand of geoskincare belongs to nzskincare Company Ltd, a New Zealand based company established in 2000. It is committed to providing safe and efficient skin care products for the public and beauty loving women, maintaining the ideal state of skin and solving the needs of skin care.

In 2014, geoskincare officially landed in China. At the beginning, geoskincare mainly developed offline, and has been in a low-key state. In the second half of 2019, geoskincare's Shuining Qingrun isolation cream is popular all over the network, becoming a large single product with monthly sales exceeding 500000. Until 2020, geoskincare 's isolation cream has a stable monthly sales of more than 500000 in Tmall and Taobao, and is the sales champion of similar products for two consecutive times.

Marketing has always been an important part of the beauty brand, and now the rise of many new brands has a close relationship with Xiaohongshu, Douyin, Taobao, and other platforms.

Geoskincare also captured the dividend. In the initial marketing, they have been looking for traffic gathering place, and put the effect in the first place, which also delimited the initial moat for them.

In 2018, Xiaohongshu recruited a large number of stars to join in. Geoskincare seized the opportunity to quickly cooperate with a number of stars and net influencers to recommend the products, repeatedly strengthening users' understanding of geoskincare and attracting them to buy and share.

When the industry still has a wait-and-see attitude towards live commerce, geoskincare has entered the market. The accurate capture of new channels makes it the "first eating crab" brand. The first station of geoskincare live streaming chose to cooperate with Weiya, the head anchor of Taobao live, which also laid the foundation for geoskincare live commerce to choose the head anchor of the platform.

In addition, geoskincare clips the live video of Viya promoting its products to a short video, and this short video appears frequently in Douyin; bloggers also test their products densely, and put videos on Douyin. The direct effect of this "overwhelming" promotion video is to make people feel that the brand is "popular " and stimulate the purchase desire of new users.

Nowadays, with the information of skin care industry becoming more and more transparent, more and more consumers begin to pay attention to brand endorsement, product composition, and consumption tends to be rational. Therefore, it is easy to understand why the current media platform has become an important marketing battlefield.

It is worthwhile to draw lessons from geoskincare, which only focuses on promoting several products such as "Water Mask", "Makeup Base" and "Cleansing Mask". In fact, the brand currently has about 50 products. In recent years, more and more beauty brands have achieved explosive growth through similar strategies. On the one hand, with a single category or several single products as a breakthrough, online channels can quickly establish word-of-mouth and brand awareness, with low trial and error costs and relatively controllable risks. On the other hand, it is also a more feasible development path when large beauty groups occupy a strong market share.

Behind China's cheese market, there is a demand of 100 billion yuan

 

In China, with the improvement of family consumption ability, parents have higher requirements on the nutritional level of children's diet. Children's cheese stick is not only high in nutrition, but also suitable for children's taste and shape, so it has become a popular snack for modern babies. Cheese sticks can be seen on billboards in offline supermarkets, online shopping malls and even elevator buildings.

At present, China's cheese market is highly dependent on imports, and foreign brands dominate. According to Euromonitor data statistics, China's cheese market CR3 in 2019 is 36.78%, and all of them are foreign-funded brands, which are French Milkana (22.7%), La Vache qui rit (7.7%) and Anchor (6.4%). From the perspective of China's local brands, Milkround has the highest market share, with a market share of 4.8%, while Mengniu, Guangming and Sanyuan, the traditional dairy leaders, accounts for 2.8%, 0.9% and 0.9% respectively.

 

In recent years, leisure dairy snacks with health, delicious, convenient and many other advantages, become a hot category in the market. By seizing this "outlet" skillfully, Milkround has created gratifying achievements and become a leading enterprise in China's cheese market through occupying  trend category space, strengthening product research and development, broadening channel layout, and enhancing brand publicity. From November 7, 2020 to December 4, 2020, the sales volume of Milkround cheese has reached 33.8% nationwide.

 

Because cheese is relatively strange to most Chinese people, they don't have the habit of eating cheese. On the contrary, the consumption of liquid milk is more than that of dry dairy products. Further extending to the more subdivided children's cheese market, the demand is very small, and the actual sales volume is not big enough. Therefore, China's overall cheese consumption is still in the cultivation period, with retail sales accounting for only 1.5% of China's dairy consumption in 2018. In addition, China's cheese consumption is still limited to high-end consumer groups and ethnic minority areas, and there is still a big gap compared with foreign popular consumption, but this is not a good opportunity?

 

The demand of Chinese consumers for dairy products is gradually changing to short shelf life, zero additives and high nutritional value. Cheese is gradually accepted by Chinese consumers with its high nutritional value. The proportion of cheese consumption in dairy products in China has increased from 0.5% in 2009 to 1.6% in 2019, which has more than tripled and is still in the process of continuous and rapid improvement.

 

Although the current Chinese cheese industry is only 10 billion, with the steady increase of the size of dairy industry and the upgrading of dairy consumption to cheese, the market size of Chinese cheese can reach hundreds of billion.

 

At present, the pain point of Chinese cheese industry mainly lies in consumers' cognition.

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