Bubble Mart: The empty soul needs a story

Author | Yu Yu

Edit | Tang Fei

"When I found Molly designer Kenny Wong, the mood was like finding Jay Chou who sang in the restaurant." Wang Ning, the founder of Bubble Matt, recalled the idea of ​​discovering artist toy designers in Hong Kong in 2016.

Wang Ning proposed to Kenny that Molly turned into a bubble Matt's "horns". Kenny brought the team to the bubble Mate. What Bubble Matt did was to make the work that "Jay Chou Jay Chou" Kenny Wong was only sold in the opera theater before it was sold in a CD.

Subsequently, Molly became a hot -selling item, which was nearly 90 % of the company's revenue. Kenny also obtained the equity of Bubble Mart based on this. Before listing, the valuation was as high as 50 million US dollars.

However, with the addition of more and more IP, Molly's revenue accounts for 14.2%. After a few years of explosive growth, the total revenue has gradually returned to normal. Although generally speaking, Mart's financial situation is still excellent, the company's senior management will not be satisfied with the status quo.

On June 18, Bubble Mart opened the first flash shop in the United States. Earlier, in January and April, Bubble Mart opened its first local retail stores in London and Auckland, New Zealand. Wang Ning said at the performance communication meeting that the proportion of business in the sea will reach 50%in the future. At present, overseas revenue accounts for only 3%. Bubble Mate obviously regards overseas business as a second growth curve.

1. In addition to molly, copy the magic power

In the first quarter of 2022, Bubble Mart did not publish detailed data. Rough estimation, revenue rose by 65%-70%year-on-year. The level of growth is basically the same as last year.

In 2021, the revenue of Bubble Mart was 4.491 billion yuan, an increase of 78.7%year -on -year; the net profit after adjustment was 1.02 billion yuan, an increase of 69.6%year -on -year.

In contrast, it can be found that in 2018 and 2019, the company's revenue maintained an explosive growth of more than 200%for two consecutive years, and the company's revenue increased from less than 200 million to 1.7 billion. In 2020, the growth rate fell significantly to less than 50%, and in 2021, it rose to 80%again.

Synchronization with the fluctuation of revenue growth, and the net profit has also experienced synchronous fluctuations. However, Matt's profitability is still strong, with a net profit of 850 million fiscal year in 2021. Although the gross profit margin has decreased slightly, it has always maintained more than 60%.

This can be attributed to the high stickiness of Bubble Mart to consumers. In 2021, members contributed more than 90%of sales, and the membership repurchase rate was as high as 56.5%.

In addition, the diversified sales channels of Bubble Mart also supported further growth. In terms of offline channels, the expansion appears to be "restrained". For example, on the location, the stores of Bubble Mart not only require the flow of people to be dense, but generally choose the landmark location of the city. For example, Beijing International Trade Store, Shanghai Disney Store, Chengdu Kuangzang Lane Store, etc. Of course, the core area is expensive, and the number of bubble Mart stores has not shown the scene of "blooming everywhere". In 2021, the number of new stores was 108, covering the core business district of major cities.

In contrast, there are more robot stores with lower operating costs. In 2021, more than 500 are added, with a total number of 1,870.

Offline channels contributed nearly half of the income to Bubble Mart in 2021, of which retail store sales increased by 67%to 1.67 billion yuan. The sales revenue of robot stores increased from 329 million yuan in 2020 to 470 million yuan in 2021, an increase of 42.9%year -on -year.

However, the growth of online channels is even more prominent. Tmall flagship store revenue slowed to 47.5%. In 2021, the newly opened Jingdong flagship store achieved revenue of 143 million yuan, an increase of 296%year -on -year. It is worth noting that WeChat Mini Program, sales even exceeded traditional e -commerce. In order to achieve revenue of 898 million yuan in order to bubble Mart, it has nearly doubled compared to 460 million yuan in 2020. In the first quarter of 2022, the revenue of the small program of the box machine increased further, an increase of 115%-120%year-on-year.

If the sales data is split, its own IP contributes nearly 60 % of revenue. Among them, in 2021, Molly achieved revenue of approximately 705 million yuan, accounting for about 15.7%of the total revenue, an increase of 97.6%year -on -year.

It can be found that, as a former "mix of mix", the proportion of Molly's revenue has fallen sharply. Among its own IP, Molly, Skullpanda, and DIMOO have three revenue ratio of more than 10%. In addition, there are two exclusive IP camps Receive more than 5%.

Bubble Mart stated in the prospectus that if Molly is damaged or failed to maintain its current attraction to consumers, it will face the predicament of no alternative. Judging from the current situation, Bubble Mart has proven that Molly's success is not accidental, and the company has the ability to successfully copy it to other IPs.

Picture source: Bubble Mart official website

Interestingly, Wang Ning compares Kenny to "Jay Chou". In 2020, Bubble Mart and Jay Chou launched the "Student Zhou You Ji Series Blind Box". In the first live broadcast, 6,600 Zhou classmates blind boxes were in 3 minutes. It was snatched and empty. In the official WeChat Mini Program, this blind box has been in a short time for a long time.

In 2021, Bubble Mart's new increase in business and launched 9 SpcemollyMega series, focusing on the high -end market, with a sale price of 4999 yuan, claiming to be "the first collection of young people". Big Wa "was fired to more than 10 in advance. The MEGA collection series also lived up to expectations. It attracted more than 8.7 million people to participate in the lottery in half a year, allowing Bubble Mart's income of 178 million. The endless tricks show that it is working hard to create an IP. 2. "Borrowing a boat" to go to sea

Bubble Mart's 2021 financial report showed that its international business growth was significantly, a year -on -year increase of 85.2%. In fact, overseas business currently accounts for less than 5%of the overall revenue, and it is far from the 50%goal that Wang Ning wants to achieve, which also shows that there is still a lot of space for overseas business.

Since the beginning of this year, Bubble Mart has frequently moved overseas, and has opened the first local retail store in London and Auckland, New Zealand in January and April. The London store is also the first store in the European market.

In fact, the bubble Mart's out -of -sea mode has grown relatively mature.

As early as 2018, Bubble Mart began the exploration of overseas business and hired Wendi, the president of Korean overseas business.

From the perspective of thinking, Bubble Mart is basically "to b first, then to C". In the early days, in order to quickly and effectively enter the market, choose to cooperate with the local powerful channel dealers to help bubble Mart quickly pave the goods, and wait for the market to have a certain degree of understanding of products and brands. Flash shops or robot stores, etc., enhance user experience and further enhance user stickiness.

However, before paving the goods, in order to minimize costs, while trying the overseas market, Bubble Mart will generally open some pop -up stores and robotics stores in the local core business district to determine whether the city has consumption potential. For example, when entering the New Zealand and Vietnamese markets, Bubble Matt first opened a pop -up shop in the local area.

Similar to this "step on the point first, then enter" mode, it is also used in the European market. Before opening the store in London, Bubble Mart participated in the MCM London and art design conference in London in 2021.

Because executives are very familiar with the Korean market -the high level of economic development in South Korea, the developed entertainment industry, high sensitivity to fashion and trend, South Korea has become the first stop for the key layout of Bubble Mart. The entertainment industry is not only popular in its country, but also can quickly radiate to the Southeast Asian market. Therefore, the Bubble Mart regards the Korean market as an important node for overseas business to "borrow ships to the sea". Essence

In terms of positioning, the two stores also have their own focus. Offline stores located in the rich people in Jiangnan, Seoul, are targeted at high -income and fashion groups; offline stores located in Jiangbei District are selected in integrated shopping malls and subway stations. The hand -made store gathering place is mainly targeted at hand -made enthusiasts.

This "borrowing ship out of the sea" is also transplanted to Singapore. Although the level of economic development in Singapore was very high, the local market was small, and it was not suitable for the preferred destination for going to sea. But the Paquan Mart is fancy that Singapore's policy is relatively open and has strong radiation capabilities for neighboring countries.

List of Bubble Mart's Overseas Affiliated Corporation

It can be said that the offline channels of Bubble Mart have formed a set of play. On the one hand, the location is located in a landmark business district, and on the other hand, it attracts core target customers through the design of trendy stores, strengthen consumers' reach and realize the final purchase conversion. The research and development of securities firms found that most consumers are locals in stores in Singapore and Seoul, South Korea, and less than one -third of Chinese students.

From 2021 to 2022, under the epidemic, Bubble Mart was still quickly opened in the world. As of now, there are 12 outer stores in mainland China, covering Southeast Asia, Europe, and North America.

At the same time as offline stores, in 2020, Bubble Mart began to enter the overseas Amazon and Aliexpress e -commerce platform, and launched the official website of Bubble Mart's Overseas Edition on overseas users. In 2021, Bubble Mart successively settled in the Shopee platform and opened multiple official stores in Thailand, Malaysia, Philippines, and Singapore Station.

3. Bubble Mart needs a story

The new market means new opportunities. Although there have been quite a lot of experience in choosing to enter the market and online and offline channels, it will still face challenges during the actual business landing process.

In an interview with the media, Wende found that we found that overseas markets in infrastructure in logistics and payment are worse than China. In China, it can be delivered on the day of the day. It is very convenient for mobile payment, but this is not the case in many countries. In this regard, it needs to be targeted to find ways to get through according to the actual situation of different countries and regions.

In terms of logistics, Bubble Mate divides the logistics system into two choices: speed and standard, providing consumers with differentiated services. Especially online channels, Bubble Mart will jointly build a logistics system with local logistics suppliers, such as relying on Amazon storage in North America to complete the distribution faster.

Comparison of time -effective comparison between Mart logistics and cross -border logistics

However, due to the production of Bubble Mart in China, the epidemic caused international logistics blockage, which impacted the overseas business supply chain. Xiao Gang, who has worked in Japan for many years, told the value planet (ID: valueplanet) that Bubble Mart is currently only available in Tokyo, and the logistics time for blind box logistics purchased online has basically exceeded one month. Since last year, the cost of cross -border logistics has increased by 2 to 3 times, which is also one of the reasons why Mart's overseas business gross profit is less than 40%.

In fact, logistics is only a part of the entire business of going to the sea. As the epidemic is gradually controlled, the future logistics costs and time will eventually return to normal. Cultural identity is the fundamental factor that can take root overseas.

Take the sales model of a blind box, Japan is the originator of a blind box game such as Gacha and Fubu. Therefore, the gameplay of blind boxes is highly accepted in Japan. However, due to the mature market, existing players occupy the vast majority of market share. Bandai South Palace Dream has accounted for more than half of the Japanese market.

Gundam to do it. Photo source: 图 图 图 图 图 图

At the same time, Japanese hand -made culture has been popular for many years, and many fixed gameplay has become popular. Xiao Gang believes that the Japanese hand -made hands are not only cool, but also the splicing process is also very fun. In contrast, the bubble Matt's hand -made can only be viewed, and "the purpose of gathering" is relatively monotonous.

Gundam to do it. Photo source: 图 图 图 图 图 图

It is worth noting that foreign hand giants have been quite stable in the business of going to the sea. Bandai began to develop overseas business in 2011. By fiscal 2021, the revenue has exceeded 250 billion yen. It reached one third. From the perspective of its overseas income composition, the United States accounts for 40%of the United States, and the European and Asian markets account for about 30%, respectively, and the distribution is very uniform.

Behind Bandai's success is the strong cultural output ability of Japanese anime. But before the listing, Wang Ning repeatedly stated that there was no story of Chaowa IP. In a conversation with Bao Fan, chairman of Huaxing Capital, Wang Ning said: "The reason why Molly can become a favorite image behind everyone is more like 100 Hamlet in the heart of 100 people. You can put your soul in. I think this is a charm of tide. "

However, experience has fully proved that the content is a key means to establish long -term emotional connections with fans, which is also lacking in Bubble Mart. Therefore, in SKULLPANDA, DIMOO and other subsequent series of products, we have seen more "story settings".

In September last year, Bubble Mart also invested in two -point anime company. Earlier, Bubble Mart invested in two animated movies "New God List: Rebirth of Nezha" and "White Snake 2: Blue Snake" Essence Obviously, Bubble Mate is giving more stories to his products.

There is no doubt that investing in anime telling stories requires a long time to precipitate, and telling the world that there is still a question of cultural identity. The means to get directly into the local market are still going to sea. For example, Bubble Mart and Disney have achieved IP use and second creation cooperation. Wende acknowledged that in some overseas stores, customers' probability of choosing other well -known IPs will be higher than choosing Bubble Mart's own IP.

At the strategic level, overseas business is just one of the key directions of Bubble Mart. The company has always expressed the "dream" of building a park project in public. However, the return cycle of high investment and asset -heavy theme park projects is not easy for Mart, which has no similar experience. Moreover, the current financial situation is very stable. If you enter the theme park project with heavy assets, there is suspicion of "the short attack of yourself". Considering that the challenges faced by markets in different countries are different, Matt's going to sea may also be as fresh and exciting as a blind box. At this stage, keeping its own advantages and being solid into overseas markets may be the key to strategic.

Reference materials:

[1] "Bubble Mart: The operating turnover data has obviously declined, optional consumption continues to be under pressure in the future? ",Sina Finance

[2] "Mysterious" Blind Box ": The Road to the success of Bubble Matt", forbes China

[3] "100 billion stars and sea, entering the sea to enter a comprehensive acceleration period", Northeast Securities

[4] "Dialogue Vice President of Bubble Marty: Where is the next stop that is playing out of the sea", 36 氪

*This article is based on public information, which is only used as information exchange, and does not constitute any investment suggestions

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