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Internet celebrity Simba made a high-profile comeback and went berserk as soon as he made his move.

When promoting the "Dellus" laundry detergent, Blue Moon was mentioned:

"Six bottles of laundry detergent that costs 7 or 8 yuan are sold for 139 yuan. What do they think of ordinary people?"

After the incident fermented, some netizens even went to question Blue Moon:

How can you sell laundry detergent for 139 when it costs only 7 yuan?!

I think the rumor that "cost is 7 yuan but sold for 139 yuan" is because people didn't examine the questions carefully!

Simba's original words were that the laundry detergent cost 7 or 8 yuan, but 6 bottles were sold for 139 yuan...

So the cost for 6 bottles is 42-48 yuan, and the selling price is 139 yuan.

Regarding this matter, Sister Mao just wants to say: Internet celebrities are also quite that in order to attract traffic!

Of course, I am also very curious about the cost of Blue Moon laundry detergent.

Coincidentally, Blue Moon released its latest semi-annual report.

No need Simba, let Cat Sister disassemble it for you first!

You don’t know until you see it, and you’ll be shocked when you see it!

During the Paris Olympics some time ago, the elevators in Maojie’s neighborhood were full of Blue Moon advertisements.

But Blue Moon, which spent a lot of money on marketing at the Olympics, ended up losing money!

What's going on?!

Look at the performance first.

Revenue is still okay.

In the first half of the year, Blue Moon's sales were still very good - it achieved revenue of HK$3.131 billion, a year-on-year increase of more than 40%.

But, it just doesn’t make money!

Revenue increased by more than 40%, but the net profit was actually a loss!

In the first half of the year, Blue Moon suffered a loss of HK$674 million, setting a new record.

What's going on?!

After taking a look, Sister Mao found that Blue Moon’s gross profit margin is still very good.

The gross profit margin even increased in the first half of the year, from 55.2% to 58.7%.

This means that if you buy a Blue Moon product for 10 yuan, the cost may be just over 4 yuan.

A rough calculation shows that a product worth 139 yuan costs about 57 yuan, which means the average cost per bottle is more than 9 yuan.

It’s a bit higher than the 7 or 8 yuan that Simba said, but it’s pretty close, right?!

Well, the gross profit from selling laundry detergent is indeed high!

But even so, Blue Moon still suffered a loss, and the loss was not small, reaching HK$664 million.

What's the problem? !

Sister Mao took a look and found that Blue Moon earned a lot and spent a lot!

In the first half of this year alone, sales and distribution expenses amounted to HK$2.2 billion, more than double that of the same period last year!

Where did all this money go?!

Looking through Blue Moon's expense details, Sister Cat found the answer:

Look, the promotional expenditure was HK$1.095 billion, compared to only HK$266 million in the same period last year;

Advertising expenditure was 200 million, compared to 86.93 million in the same period last year;

At this point, the answer is clear -

Blue Moon spent a lot of money on advertising and marketing, which certainly contributed to the return of performance growth, but also led to losses!

Blue Moon suffered losses because of advertising and promotional marketing. I don’t know how to evaluate this.

In fact, this is not the first time that Blue Moon has incurred losses due to advertising.

During the 2008 Beijing Olympics, Blue Moon signed the "Diving Queen" Guo Jingjing with a sky-high endorsement fee of 200 million yuan.

At that time, Blue Moon's annual revenue was only 400 million yuan. The huge advertising expenses also caused the company to fall into serious losses.

But relying on Guo Jingjing's fame and a strong sales team, Blue Moon quickly gained popularity across the country, with sales soaring and its market share exceeding 30%, thus becoming the "number one laundry detergent brand."

But times have changed.

Today, Blue Moon’s popularity is no longer in doubt.

But faced with the dilemma of revenue growth, Blue Moon's "prescription" is still advertising, which makes people feel a little...

In fact, Blue Moon’s problem has always been its over-reliance on the single product of laundry detergent.

Nearly 80% of the revenue comes from laundry detergent and clothing cleaning and care products.

Once upon a time, Blue Moon was popular all over the world with its laundry detergent and hand soap, becoming the "number one laundry detergent".

But in recent years, the clothing cleaning industry has undergone innovation.Laundry Pods and Concentrated Laundry DetergentsIt is very popular, and Liby, Omo and Ariel seize the opportunity to innovate.

In contrast, Blue Moon’s flagship product is still laundry detergent.

The company has poor performance, an overly single product structure, and no successful new products to predict the future.

This is probably the reason why Blue Moon reached its peak as soon as it went public.

Look, Blue Moon's share price is now less than HK$2, down more than 90% from its peak.

In more than three years, the market value evaporated by nearly HK$100 billion.

Now, Blue Moon is once again using its advertising tactics, hoping to recreate the miracle of that year.

Can it succeed? ! I'm afraid it's difficult!

What do you think about this?!