For its employees, Blue Moon is a company that people both love and hate. A few months ago, Blue Moon was reported by many self-media outlets to be "withholding wages from employees and laying off employees in disguised forms", which instantly aroused criticism on the Internet.

For its employees, Blue Moon is a company that people "love and hate".

A few months ago, Blue Moon was exposed by many self-media outlets as "withholding employees' wages and laying off employees in disguised forms" , which instantly aroused verbal and written criticism on the Internet.

Recently, Blue Moon released a share incentive plan , which mainly rewards core employees who have contributed to the company's growth and development; at the same time, it attracts suitable talents to join to promote the company's further development.

has been in the works for a long time. Blue Moon’s move is to attract talents.

It’s no wonder that Blue Moon’s stock price has already fallen below the issue price after being listed for more than half a year. If we don't find some capable people to turn the tide, Blue Moon will never be able to see the light of day again.

"walks on one leg" and relies heavily on laundry detergent

has been on the market for half a year. Blue Moon has deeply realized the "disdain" of the capital market.

After briefly touching the highest point of HK$19.16 after listing, Blue Moon's stock price has been falling.

As of the close of trading on June 22, Blue Moon’s share price was HK$10.82. It is nearly HK$3 lower than the issue price of HK$13.16 when it was listed on December 16 last year.

To put it more professionally, this is called breaking.

The reason why Blue Moon’s stock price is not strong has to be found from the company’s performance.

data shows that Blue Moon’s revenue in 2020 was HK$6.996 billion, a year-on-year decrease of 0.8%; net profit was HK$1.309 billion, a year-on-year increase of 21.3%.

Net profit growth is not bad, but it relies on compressing sales expenses (sales and distribution expenses). data shows that Blue Moon’s sales expenses have been decreasing since 2018. From 2018 to 2020, Blue Moon's sales and distribution expenses dropped from HK$2.548 billion to HK$2.323 billion, and then dropped again to HK$2.017 billion in 2020.

In other words, the increase in Blue Moon’s net profit was all saved by “Kouquousou”.

Judging from the growth rate of revenue, Blue Moon does lack growth. No wonder it is not favored by the capital market.

The reason why this situation occurs is because Blue Moon has always been "walking on one leg" - relying too much on laundry detergent.

As the “No. 1 laundry detergent stock” in China, Blue Moon has been the company with the largest market share of hand sanitizer from 2012 to 2019.

In 2020, the vast majority of Blue Moon’s revenue still comes from laundry detergent (clothing cleaning and care products). This business’s annual revenue reached HK$5.596 billion, accounting for approximately 80% of total revenue.

Generally speaking, the daily necessities industry must frequently launch new products in order to compete for existing market share.

Blue Moon does the same. Especially when the epidemic is raging in 2020, Blue Moon also wants to focus on the theme of anti-epidemic and impact a new category of personal and household cleaning care products, and has successively launched foam antibacterial hand sanitizer, automatic mobile phone washing, and foam time kitchen hand washing liquid, no-rinse antibacterial hand sanitizer and Jingxiang amino acid hand sanitizer and other new products.

The data looks pretty good. In 2020, Blue Moon recorded revenue of HK$836 million in personal cleaning and care products, a significant increase of 99.7% compared to the same period in 2019, accounting for approximately 11.9% of total revenue. At the same time, household cleaning and care products also achieved a year-on-year growth of 24.5% with revenue of HK$565 million.

However, compared to Blue Moon’s famous “laundry detergent”, these new products have not caused much splash in the market. The sales volume of is very average compared to other competing products, and some of the new products are even unknown to the public.

has caused a large number of employees to leave, and tactics have repeatedly hindered it.

The problem lies in: Blue Moon’s strategy is right, but its tactics have hindered it.

In the current daily necessities industry, there are a wide variety of daily chemical products, but there is no obvious difference in function.

If a product wants to "suddenly emerge", it must rely on promotion and marketing to "look familiar" and "find a sense of presence" in front of consumers.

But Blue Moon doesn’t believe this. As we mentioned above, Blue Moon has been compressing sales expenses (sales and distribution expenses) in recent years.

Especially in the e-commerce channel, Blue Moon is much behind its competitor, Liby.

Liby has done a very good job in new media Internet marketing such as Douyin. It has not hesitated to invite popular celebrities such as Wu Yifan, Zhou Bichang, and Zhang Ziyi to attract young fans.

Blue Moon has not made any efforts on the social e-commerce platform to please young consumer groups, which is why few people are interested in Blue Moon’s new products.

Even the young consumers, the main consumer groups in today’s society, are too lazy to maintain it. Blue Moon can only rely on the “laundry detergent” market to maintain some face.

In fact, Blue Moon has always been a master of good strategies but slow tactics.

Around 2014, the micro-business model and direct sales were very popular on the market. Blue Moon also saw the prospect in this regard and decided to follow suit.

It’s just that Blue Moon’s thoughts are beautiful, but what it does is quite “disgusting”.

In order to increase profit margins, Blue Moon requires employees in all positions to work part-time in WeChat Moments to sell goods. Even HR in charge of recruitment is not "immune", otherwise their wages will be deducted.

In 2015, Blue Moon became obsessed with direct selling again. directly reduced the wages of grassroots promoters to 0 and only gave sales commissions to employees.

This kind of operation was not a big deal, and a large number of Blue Moon employees chose to leave. Before leaving, I did not forget to go to the Labor Arbitration Commission to complain to Blue Moon.

This is Blue Moon’s typical “tactics holding back the strategy”.

In addition, there is also the big event of Blue Moon "abandoning" supermarkets.

Blue Moon has always relied on selling its products in supermarkets. Even though it is the "King of Laundry Detergents", it still has little bargaining power in front of supermarkets and is tightly manipulated.

Blue Moon also thought of changing this situation, but as a result, Blue Moon directly "abandoned" the supermarkets and set up its own direct sales channel, Moon House, to negotiate with the supermarkets to gain pricing power.

As a result, Blue Moon was "anti-abandoned" by supermarkets and major shopping malls, and Blue Moon products were removed from the shelves.

In 2019, Blue Moon, who couldn’t stand it anymore, returned to the supermarket in despair.

From this point of view, Blue Moon really needs to attract a wave of talents and change the previous "tactical hindrance".