A few days ago, Sun Huaiqing, chairman and CEO of Marubeni, said in an exclusive interview with a reporter from China Securities Journal that in recent years, the company has firmly promoted strategic transformation and achieved comprehensive breakthroughs, and in the future, the company will build a more advantageous brand, and insist on being an industry builder to promote the continuous and high-quality development of the mainland beauty industry.
In-depth transformation through the industry cycle
Founded in 2002, the company is based on dermatological and biological science research, focusing on the research and development, design, production, sales and service of various cosmetics, and its main brands include "Marubeni" and "Love Fire", among which "Marubeni" has been focusing on eye care and anti-aging for 22 years. In 2019, the company successfully landed on the Shanghai Stock Exchange and was known as the "first share of eye cream".
Sun Huaiqing introduced that Marubeni originated from the philosophy of oriental aesthetics - "circle is beauty", from the beginning to the end, endlessly. Since its establishment, the company's development has roughly gone through three stages. From 2002 to 2007, Marubeni took root in the development stage, the company focused on the eye care track, and completed the national offline network and team building. From 2007 to 2019, the company's brand and popularity continued to improve. Since 2020, in the face of major changes and challenges in the traditional business model, the company has deepened its transformation and development, and achieved comprehensive breakthroughs in channels, products, brands, people, and supply.
"Transformation is never easy, especially when everyone is transforming, and the road to transformation is even more difficult." Sun Huaiqing said that Marubeni also encountered many difficulties in the process of transformation. The company continues to promote transformation, from product development to marketing promotion, from procurement and supply to logistics and distribution, as well as from organizational structure to process mechanism and other aspects have carried out comprehensive iteration and reform.
In 2023, Marubeni will achieve operating income of 2.226 billion yuan, a year-on-year increase of 28.52%, a new high since its listing. Among them, online channels achieved operating income of 1.871 billion yuan, accounting for 84.11%; The offline channel achieved operating income of 354 million yuan, accounting for 15.89%, marking a fundamental change in the company's sales model.
In 2023, the company will achieve a net profit attributable to the parent company of 259 million yuan, a year-on-year increase of 48.93%, reversing the trend of decline for three consecutive years. In the first quarter of 2024, the company achieved operating income of 661 million yuan, a year-on-year increase of 38.73%; The net profit attributable to the parent company was 111 million yuan, a year-on-year increase of 40.62%. "Since 2023, the company's operating income and net profit have grown steadily, indicating that the company's transformation is on the right path and has basically achieved the right transformation." Sun Huaiqing said.
On the road of transformation, Marubeni shares always maintain a high degree of sobriety. In Sun Huaiqing's view, it is too early to say that the transformation has been successful. "Marubeni has been around for 22 years, and it's easy to be rigid in organization. All aspects of the company are constantly consolidating on the right path, and we dare not slack off for a moment. Sun Huaiqing said that if the company's profit exceeds the profit level of 2019 by 2025, it will mark the success of the company's transformation.
Forging the core competitiveness of the "Diamond Age".
Sun Huaiqing said that the past 20 years are the golden age of China's cosmetics industry, and the future will be the diamond age of China's cosmetics industry.
Since its establishment, Marubeni has always regarded scientific research as the core strategy of the company's development, and is committed to building leading scientific and technological competitiveness. "Marubeni adheres to the mission of 'technology-driven beauty and health', and has firmly believed that technology can change the world and technology can disrupt the industry from the beginning of its establishment." Sun Huaiqing said.
After years of continuous investment in scientific research, Marubeni has built six R&D platforms, including a basic research center, a pilot test center, and an evaluation and testing center, and built a full-link R&D system of self-research, self-production and self-inspection. At the same time, the company focuses on the precise needs of key markets and key products, establishes a periodic R&D grading mechanism, builds an innovative R&D model, breaks through the R&D and transformation of key technologies and core raw materials, creates products with core competitiveness, and establishes a "moat" of brands and products through scientific communication with temperature.
In recent years, Marubeni has successively launched core ingredients such as "Type I + Type III Triple Helix Recombinant Double Collagen", "Split Fold Polysaccharide (SPG)", "Supramolecular Kapok", and made breakthroughs in core technologies such as CelCaper directional low-temperature cold brew technology and C-PRO buckle ring reinforcement technology. In 2023, the company will launch supramolecular elastin, achieve the successful filing of the first new raw material "finger orange extract", and complete the international registration of SPG raw materials. As of the end of 2023, the company has applied for a total of 510 patents, including 400 invention patents, ranking at the forefront of the domestic beauty industry. A total of 278 authorized patents have been obtained, including 191 authorized invention patents.
Promote the development of industry standards for recombinant collagen
According to Wind ESG Ratings, Marubeni's ESG rating was rated A again this year. In the past three years, the company's ESG rating has been A, and it has continued to be at the leading level in the industry. In recent years, the company has adhered to the guidance of "becoming an excellent enterprise, but also an excellent corporate citizen", established a systematic and comprehensive ESG management system, forged its own new quality productivity through the coordinated development of digital and green innovation, and continuously built a solid foundation for the company's sustainable development.
In Sun Huaiqing's view, an excellent enterprise must first be an excellent corporate citizen, have good sales growth and profitability, and must also be an industry builder and have the ability to go through the cycle. "The company will stick to the road of its own brand positioning." Sun Huaiqing said that Marubeni should not become anyone, but to become herself, and grow into a more advantageous brand in her own advantageous fields.
Recently, Marubeni's 4th Recombinant Collagen Science Forum with the theme of "Collagen Core Growth" was held in Guangzhou. Sun Huaiqing introduced that the company has held recombinant collagen science forums for four consecutive years, and major cutting-edge achievements have been released in each session. In 2021, the company held the first Recombinant Collagen Science Forum to release recombinant double collagen components consistent with the amino acid sequence of the body's own collagen. At the latest scientific forum this year, Marubeni, as one of the leaders of the recombinant collagen industry rules, took the lead in initiating the formulation of national industry standards for recombinant soluble collagen, and launched the five high-quality standards for recombinant collagen.
"Marubeni insists on holding itself to high standards and aspires to be a builder of industry standards." Sun Huaiqing said that the company will adhere to the concept of "adults achieve themselves and become others", insist on being a builder of the industry, and make greater contributions to the high-quality development of the mainland beauty industry.
(The pictures in the article are all provided by the company)