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Source: Beijing Commercial Daily
Original title: The turmoil continues to bubble. Weaknesses in Matt’s “blind box economy” must be broken
Bubble Mart needs to think about where the market is tomorrow. On December 28, Bubble Mart responded for the first time to the blind box economics that has been questioned in recent days and said it will strengthen supervision. If you want to take the blind box economy and even the fashion toy market long-term, Bubble Mart is just getting started. Lack of experience in online channels, low competition thresholds and homogenized products are weaknesses that must be overcome.
No entry threshold
With the “Blind Box Economy” admission ticket, Bubble Mart has shown its edge on the fashionable playing field, but it seems difficult to achieve a full game with just this card. According to data forecasts, the Chinese fashion toy market will reach a scale of 100 billion in the next three years, and Bubble Mart, as the leading player in the Chinese fashion market, has a market share of only 8.5% in the leaflet.
To compete for visible market space, Bubble Mart has to pass the market questioning the model. Faced with the flood of new entrants and the current chaos in the blind box market, Pao Mart intends to straighten out the blind box market and the fashion toy market. In recent days, the consumption of blind boxes has been condemned by many parties. The Xinhua News Agency noted that the addiction and gambling psychology caused by the “blind box fever” are also generating abnormal consumption, and also called on regulatory authorities to further regulate the blind box business model. Affected by this, Bubble Mart’s share price, which is close to the blind box, fell in response. The share price fell more than 16% during the session and its market value evaporated by almost HK $ 12 billion.
How does the blind box deal with supervision? “Blind boxes are not an immature business model, because there are unrecognized brands that convert precious metals, broken diamonds, etc. into boxes. They are more inclined to gamble, which disrupts the market,” replied Bubble’s COO. Mart, Shide, to Beijing Business Daily The reporter said in a question that he also indirectly indicated that it was not the category like Bubble Mart that caused the consumer gambling psychology. Bubble Mart expects supervision to step in to suppress the development of the industry.
Wen Zhihong, partner and head of chain operations at Hejun Consulting, said bluntly: “Bubble Mart maintains a high valuation in the capital market. Indeed, the challenge is great. Currently, there is a bubble in this valuation. “. Matt will enter the bubble compression period. “
While Bubble Mart’s stock price is falling, the continued development of competing products is putting pressure on it as well. The business model of using blind boxes as a fashion game appears to be more reproducible. Si De said: “The blind box market has no threshold, but fashion toys do. Designers continue to innovate, build channels, digital capabilities, and complete the supply chain. The title will affect the long-term development of Bubble Mart. “Still, the speed of new products in the blind box market is still overwhelming. Toptoy launched 52 IPs and fashion brands on opening day and established more than 200 studios and designers. Camaraderie.
To maintain long-term combat effectiveness, after companies like Bubble Mart use blind boxes to open up the market, it is necessary to expand the category and expand the influence of intellectual property. Si De told the Beijing Business Daily reporter, “Bamboo Mart is constantly developing. In addition to blank boxes, hundreds of non-blank box products are released every year, such as handmade models, real models, etc.” promoting products other than blind boxes, Si De said: “We have no shortage of marketing and promotion. What is lacking is quantity.”
Lack of online experience
The offline physical store is indeed the station of the fashion players, but no one wants to give up the vast online market. Today’s Bubble Mart relies onAliFrom various resources, I want to mature the online market as soon as possible. Bubble Mart is also looking for Ali’s digital production capabilities. Side said bluntly that digitization can deepen the understanding of current users, understand user portraits and promote more accurate product decisions. In his view, the online resources provided by Ali are more of a traffic slant, providing a market that Bubble Mart’s stores and vending machines have difficult access to.
However, the process of going from being offline to being online is not that simple. “In fact, there is a difference between the perspective of online and offline business. The cost of online ad traffic is relatively higher. Physical offline stores often open in shopping malls that the target audience wants to visit. The flow of customers from the mall itself provides a good advertising role, “said Si De.
In addition, online shopping is difficult to bring consumers the shopping atmosphere of offline physical stores, which is also a big problem for Paomart to develop online business. Offline physical stores are a direct channel to spread the brand, and physical stores are also easier to create atmosphere and stimulate consumption. On the contrary, creating an atmosphere is not the strong point of online channels, but it also means discounting the experience of the blind box.
“Bubble Mart Pays More Attention to the Offline Market”. According to public data from Si De, Bubble Mart’s ratio of online and offline sales is 1: 2 respectively, and there is no clear division of sales on each channel.
Even in the offline market where Bubble Mart is useful, the competition is getting fiercer. MINISO’s new brand totoy also opened Asia’s largest offline fashion collection store in Guangzhou, with a three-hour trial operation and sales of 150,000; Offline fashion collection stores like Kulechaowan also constantly impact Paoma Special Status. MINISO and Kule Chaowan are brands with stronger retail attributes. For these retail stores, starting with their own offline design and high turnover, they competed for potential users of the Chaowan blind box to some extent.
You have to break homogenization
Be it a blind box or a fashion toy, the products of each brand are always very similar. A reporter for the Beijing Business Daily saw in many blind box stores that many brands swarmed with dolls as protagonists, the products developed lacked obvious recognition and the phenomenon of “following the trend” was also very evident. Attention to the market may yield short-term benefits, but in the long run it will lead to the problem of product homogeneity.
“We will feed back the digital data and user profile data provided by e-commerce to designers for reference, but we also tell designers that it is not necessary to receive feedback from the market in its entirety, because being fully market oriented will cause the homogenization of the products. “Said Side.
In fact, custom design is the “moat” for players in the fashion market. In reality, there is a contradiction between the crazy ideas of the designer and the commercial operations that can circulate in the market. When the digitization and reverse personalization that e-commerce advocates collide with the designer’s ideas, finding a balance is crucial.
“On the issue of product homogeneity, Bubble Mart should continue to improve the intellectual property of its products. It must have strong R&D and creative capabilities. The homogeneity of the blind box market can also lead to a gradual decline in the prices. Because the profit of the blind box itself is very high, the price of some brands of blind boxes is already lower. In the future, Bubble Mart may also need to launch some corresponding low-priced products to face the competitors, “Wen Zhihong said. .
Where is the outlook for the fashion toy market? The market wants to calm the market for blind boxes and find a way to long-term development. Bubble Mart said that it will increase the development of digitization in the future. It is understood that in terms of offline location selection, Bubble Mart will use Ali’s digitization to view user portraits in the business district, helping Pao Mart open stores and place them in vending machines. However, the granularity of digitization cannot be too detailed today. “The number can be narrowed down to a business district. It would be a bit unrealistic to say that digitization can make Bubble Mart’s location accurate to the floor and location.” Yes De bluntly.
Beijing Business Daily Reporter Zhao Shuping Lin Yuwei
