Shuke’s parent company wants to go public, or change the pattern of oral care in China

2022-05-13 0 By

On February 8th, The parent company of Shuke, Wemetz Industrial (Guangdong) Co., LTD. (hereinafter referred to as Wemetz) formally submitted its ipo prospectus to the Hong Kong Stock Exchange.As early as the beginning of this year, The news that Wemeizi will be listed in Hong Kong has been widely circulated in the industry.It seems a sure thing that Wemetz will become the first oral care company in China in 2022.For the whole cosmetics of the capital market, Wei Mei posture will undoubtedly be a strong player.According to the prospectus, From January to September 2021, The total revenue of Vmeizz was about 1.23 billion yuan, up 14.8% year on year. The revenue of the company’s toothpaste products accounted for more than 50%, and the online revenue accounted for more than 43%.Eu beautifying figure was founded in 2014, its comfortable guest is the oral care of domestic well-known brand, not only in the wal-mart, carrefour, aeon, rt-mart, yong hui and other international and domestic large chain stores in a large number of layout, but also created Tmall, jingdong, spelling, many mainstream electric business platform and trill, new media channels such as the little red book.From the relevant data, Shuke’s oral care market share in recent years belongs to the second in China, second only to Yunnan Baiyao.After this listing, Shuke may find new development with the strength of capital, catch up with Yunnan Baiyao and become the second in China, thus changing the pattern of oral care in China.Before the official listing, Wemeizi’s gross profit in recent years has been in a state of improvement.In 2019, Wemetz’s gross profit was 53.8%;By 2020, gross profit will increase to 58.1%;In 2021, its gross profit directly climbed to 62.8%!In the current economic situation is not good enough to maintain such a high gross profit growth like Wemeizi enterprises, it is chicken hair diamond.It is not difficult to predict, after listing, the development momentum of Wemeizi will be stronger.However, The Oral care market in China is a track with both opportunities and challenges.Data show that the retail sales of China’s oral care market increased from 49.6 billion yuan in 2016 to 88.4 billion yuan in 2020, with a compound annual growth rate of 15.5%, and is expected to reach 152.2 billion yuan in 2025.Such a big cake, naturally will attract countless players.In recent years, many new oral care brands have sprung up, causing the favor of the majority of young consumers, such as Sweet, Usmile, Bingquan and so on, these brands have their own characteristics, outstanding performance, is inevitably the most powerful opponent of traditional oral care brands like Wemeizi.With the improvement of living standards, consumers’ demand for oral care is getting richer and richer. The oral care market gradually presents a trend of fine differentiation, expanding from the original toothpaste and toothbrush to mouthwash, oral spray, dental flusher and other categories.The company has 61 new or upgraded products in the pipeline, including toothpastes, mouthwashes, oral sprays, electric oral care products, manual toothbrushes and other new categories, according to its prospectus.In 2021, Wemeizi upgraded the brand concept of Shuke from the original “one-stop oral care” to “one-stop oral care”, which can be said to be a major innovation of Shuke.Uphold their own unique characteristics, Weimeizi listing is bound to be smooth sailing.