A financing of financing allows the track of sexual products to enter people’s vision again.
Recently, the female sex brand “Adult Sugar” announced the completion of a round A financing of 250 million yuan. This round of financing was jointly led by Da Chen Caizhi and IDG Capital.
This is not the first financing of the track in this year. In March of this year, the new retail brand “Love Movement” of adult supplies has continuously completed the equity financing shared from Tianjiu and the 10 million -level A+round of financing jointly invested by the business media group and the potential capital; Reason has completed millions of RMB seed round financing.
In addition, the old brand “Drunk Breeze” submitted a prospectus to the Shenzhen Stock Exchange in July this year and plans to log in to the GEM. Although it took the initiative to withdraw the application shortly later, it still caused a wave of discussions on “the first share of sex products”. , And even some people nicknamed, “The spring of sex products is finally coming.”
Indeed, as the national ideas are open and the “sexual consciousness” continues to improve, more and more people have begun to “pay for sex”, so they have also spawned the 100 billion market for sex products.
However, after chatting with practitioners, it was found that the industry has long faced the dilemma of “high gross profit” and “low profit”. At the same time, although it has already passed the era of “sexual changes”, it is affected by industry’s particularity and national supervision. For industry practitioners, this seems to be a “unspeakable business”.
The “hidden” 100 billion market, Dachen and Shenzhen Innovation have already entered the game
“The market of sex products is seriously undervalued by the outside world.” Some industry practitioners lamented the investment network.
For a long time in the past, sex products are still a vague category in China. Although the “sex” is no longer as difficult to open as before, “sex” is still unable to be promoted and extensively discussed as other consumer products categories. Essence But in fact, the track has grown into a 100 billion market in a hidden corner.
According to data from the Pricewater Industry Research Institute, the market size of China’s sex products industry has reached 113.44 billion yuan by 2020. From the perspective of the consumption level of per capita adults, according to incomplete statistics, China’s adult product consumption has accounted for US $ 27.4 billion (about RMB 176.2 billion) in recent years.
At the same time, as the 80s and post -90s groups became the main force of consumption, their acceptance of sex products has exceeded 93%. Compared with the huge market size, my country’s sex products industry, including products, channels, and production, has the characteristics of small, scattered, and chaos. Even listed companies such as lovers and Chunshui Hall have less than 10%of the market share, so the prospects of China’s sex products market are very considerable.
In fact, as early as 2016, the sexual product track ushered in a wave of investment.
At that time, a series of social software users such as Momo and exploration increased, and the topics of gender were often on hot search. At the same time, the two major e -commerce giants of JD.com and Taobao have presented a two -point situation. The capital market has begun to smash the money in the field of vertical e -commerce, and the sex products industry has benefited.
According to incomplete statistics from the investment in China, around 2016, brands including Mi Yue Technology, Chunshui Hall, and his fun have received multiple rounds of financing in a short period of time. China and other front -line institutions. Among them, in 2016 alone, at least 28 companies in the industry received financing, and the public financing quota cumulative exceeded 1 billion yuan. The four major interest brands lovers health, Chunshui Hall, His Fun, Taohuawu is collectively listed on the New Third Board in the same year.
This year, the sex products industry has ushered in a new wave of investment. In the past few months, many companies including adult sugar and love have received financing. Adult sugar has received 250 million yuan led by the first -tier institutions of IDG and Dachen Caizhizhi in the first round. Financing.
Although the investment institutions have used the bullets on their hands to “speak” to the industry. But at present, there are still many practical problems in the sexual product industry.
There is no “wealth myth” in this industry
Somewhere has always been called a huge profit industry.
According to reports from the China Research Institute of Industrial Research, traditional channels can keep 100%gross space from the manufacturer’s brands, wholesalers, retailers, and retailers. The average gross profit margin of sex products manufacturers is between 40%-50%.
Chart: The total profit of China’s sex products industry (100 million yuan)
Data source: China Research Pwa Industrial Research Institute
But in fact, the high -hairy profit comparable to the real estate industry does not bring the so -called “rich myth” to the industry. On the contrary, low profits and even losses are always accompanied by most sexual supplies companies.
“The business of sex products is that (outsiders) saw the thief eating meat and did not see the thief beating.” Liang Jing sighed at the investment network.
Liang Jing started entrepreneurship and retail in 2014. At first, she had an offline store in Beijing Lishui Bridge. “The location of that shop is particularly good, because Lishui Bridge is the transfer station of Metro Line 13 and Line 5, the traffic itself is large, and it is close to Tiantongyuan Community, so I always think that the business of this shop will be good.” But I did not expect Yes, she soon encountered a problem.
To do retail business, it is inevitable that there will be hoarding of goods. When the number is small, Liang Jing put the stocking at home. However, as there are more and more stocking, they have to need a warehouse.
“Every time I pay the rent, I am particularly worried, and I feel that the money I earn is rushing (pay) the rent.” Liang Jing said. According to her, this pressure is not unique to physical stores, and many e -commerce platforms are even higher than physical stores.
Not only small and micro retailers, even the leading companies in the industry are also trapped in the quagmire of “low profits”.
Recently, Chun Shuitang released a semi -annual report in 2021. During the reporting period, operating income was 2.128 million yuan, but the loss reached 2.47 million yuan. Yuan, and the listing was terminated in May this year; another erotic supplies head enterprise Taohuawu also had difficulty in profitability. In 2020, it lost hundreds of thousands of dollars in the year. Nothing from net profit exceeded 20 million yuan.
Why is it so difficult to do business?
Fierce industry competition and lack of independent brand building or the main reasons for the low performance of the enterprise.
According to Tianyan check data, there are currently about 90,000 related companies in my country. In 2020, 29,600 registered companies in the year, an increase of 622%year -on -year. In the first half of 2021, the number of registered companies increased to 44,000, an increase of 923.3%year -on -year.
The “barbaric growth” of the industry directly leads to the serious homogeneity of the product. By browsing major e -commerce platforms, it can be found that on the search results page of sex products, the same product pictures and similar promotional words. In this case, consumers can only make decisions through price comparison, and products with low prices are more likely to be favored by consumers. In order to attract customers, most merchants will choose a strategy of small profit -making and production low -quality products to reduce production costs, but in this way, the profit margin of the entire industry will decrease.
“Competition is just one aspect. In the final analysis, there are still no explosive products that have not been developed.” Zhang Tao, who has been in the love supplies industry for many years, told investment.
Most of the companies mentioned above are mainly channel vendors. Such companies have not yet formed strong independent brands and sales share. Taking Drunk Breeze as an example, Drunk Breeze uses the sales model of “proxy brand+own brand”. According to the prospectus, the company currently has more than 100 brands, including Durex, Okamoto and other well -known brands. But its own brands are the only mystery and Mu. Data show that the company’s revenue in the 2020s accounted for 64.77%, which means that the current revenue of drunk breeze still seriously relies on the agent brand.
According to Zhang Tao, in the sexual product market, the profit -based manufacturer’s profit is usually 20%to 30%, and it can get at least 40%of the profits to promote its own brand. Percent profit margin.
In fact, it is not just in the sexual supplies industry. The above two problems can be said to be the “common problem” of all industries. Brands can still achieve the purpose of improving the core competitiveness of the brand through independent research and development, optimizing products, and improving product experience. However, unlike other industries, due to the particularity of sexual products, it is impossible to do brand promotion on the media of the public. This problem is still a blockbuster on the development of the interesting industry.
“A business that cannot be exported”
Although it has already passed the era of “sexual changes”, for practitioners, the sex products industry is still a “unspeakable business”.
“I used to have a Weibo account, 60W fans, because I posted a product map, the account was blocked.” Liang Jing said to Venture Network.
Due to the particularity of sexual products, it is easy to be hit with “erotic” labels when describing product functions. If you don’t pay attention, you will touch the regulatory red line. Therefore, it is difficult for sex products to appear on the mainstream advertising position and cannot participate in the promotion activities of most e -commerce channels.
Not long ago, Kuaishou officially issued relevant “ban” to the issue. Kuaishou clearly stated that when the cargo experts are promoted and marketing in the e -commerce live broadcast/e -commerce short video, they must not promote the efficacy of adult supplies. Once violations occur, Kuaishou will make deletion of related products. If the plot is particularly serious, the plot is particularly serious , Will be processed for banned accounts.
Without a large amount of advertising, it means that it cannot increase sales on a large scale, which will hinder the development of the entire industry.
In this regard, a former investor who focuses on the sex of the sex products believes that supervision will indeed have a certain impact on corporate marketing, but it is also the process of reshaping the industry. “Policy supervision makes it difficult for bad enterprises to propagate by” playing the side ball “to make it difficult to operate, so that practitioners can start from scratch and better examine the industry’s industry. Card off this content. “
Yang Changliang, the founder of Drunk Chunfeng, also expressed a similar point of view: “The sex products industry itself needs to get rid of these negative labels, and this industry will have greater development. Good industry. “
At present, we can see that some companies are trying to make brand stripping the “pornographic” associative through a better way to achieve the purpose of marketing and promotion.
For example, adult sugar, choose to cooperate with the self -media such as ten o’clock reading, book lists, and fruit shells in the cold launch session, and focus on the transmission of women’s self -pleasing values. In addition, adult sugar will also invite well -known women KOL to visit and share their experiences and perceptions with users to pass the women’s spirit; while drunk breeze sets a sex knowledge science column on the official public account, and it is launched on the sexual knowledge. tips.
In the future, how to break the public’s constraints on “traditional thoughts” and provide consumers with a more “heart -hearted” and “positive” brand experience is the correct way to play in the fun industry.
(Liang Jing and Guo Tao in the text are pseudonym)