Recently, we released Rebecca's in-depth report, “Double-track extension of brand channels, cross-border e-commerce sailing”. Through continuous tracking of the company, we believe that the company's domestic market development and the progress of the salon channel are worthy of attention. In 2015, the company restarted. Fan Bingbing, as the brand spokesperson, saw a sharp increase in the Rebecca brand's attention index in May, and the laying of the fashion salon channel was also actively preparing. We further summarize the investment points of Rebecca:

The company's wig business has three major points of view: Aspect 1: The US market is recovering, the high-end products are structurally warming up, the company's order growth rate is picking up, and the dealers are going to complete it; Aspect 2: The African wig market contains hundreds of billions of consumption space, the company channel The layout turned to the first price, the wholesale channel volume became the strategic focus; Aspect 3: The company's domestic brand channel positioning extension, "brand segmentation + e-commerce plus code" to expand the target group, "store display + online marketing" dual-track parallel, " Double-brand, dual-channel "optimized market management mechanism, the hair salon channel is just around the corner.

Fan Bingbing returned strongly and the star effect heated up rapidly: Rebecca took the example of Fan Bingbing in 2009, and first developed the domestic market and established the image of the first brand of domestic wigs. At present, the company has accumulated a strong brand advantage, and the Rebecca brand's repeated purchase rate exceeds 30-40%. In 2015, the company restarted Fan Bingbing's endorsement and increased the advertising quality of the company's high-end wig quality, which will further enhance the company's brand recognition and boost the market purchasing power of wig consumption.

It is a common perception that celebrity endorsements are more likely to impress consumers, especially for brands with strong luxury attributes or fashion features. According to the StarKPI Star Energy Survey, 56% of consumers believe that “an advertisement with celebrity endorsements is more likely to leave an impression”, and this ratio is higher in the 20-29 age group, reaching nearly 80% (76%). China's wig consumption has a strong fashion attribute, showing women's pursuit of fashion and beauty at different ages. The 22-30 year old young consumer group accounts for the largest proportion (about 32%), and the new women and fashion people with a material basis over the age of 30 are also important target customer groups.

Fan Bingbing, the 2014 Chinese celebrity list released by Forbes, topped the list. Fan Bingbing, who is also the most valuable advertising actress, is also listed in an authoritative business magazine in China, “China Advertising Star Endorsement Value Report”. Fan Bingbing’s endorsement of the advertisement not only covers many domestic and international brands of “high-end”, but also far exceeds the average level of many popular first-line stars. Its endorsements are LouisVuitton, Louisy, and L. ''OREAL Paris L'Oreal, Cartier Cartier, Mercedes-Benz Mercedes-Benz, adidasoriginals, Haagen-Dazs are among the hottest international fashion luxury brands.

Judging from the domestic sales of Fan Bingbing's endorsement brand, the “star effect” and “commercial efficiency” showed a certain correlation (the domestic sales growth of brands such as Mercedes-Benz, L'Oreal and Rebecca increased their growth during Fan Bingbing’s endorsement) Especially for the personal fashion consumer goods such as wigs, the publicity effect is more prominent. In 2009-2011, Fan Bingbing endorsed Rebecca during the wig period that the company's domestic wig sales revenue increased by more than 70% annually, and the compound annual growth rate in 2012-2014 fell to 8%. At the same time, from the Baidu search index, after Rebecca restarted Fan Bingbing as the brand spokesperson in 2015, the Rebecca brand's Baidu search index soared. Fan Bingbing's image as a “Queen of Fashionable Fashion” fits Rebecca's high-end wig positioning and can still cause more consumers to resonate.

Exploring or achieving phased results in the hair salon channel:

The salon channel is closest to consumers and is the blue ocean channel for wig sales to be developed. According to statistics from the Ministry of Commerce, the annual turnover of the hairdressing industry is as high as 118.3 billion yuan, 60 times the size of China's wig manufacturing market. In 2013, there were 140,000 professional hairdressing units in China, and 480,000 professional hairdressing employees.

The average turnover of a single company is nearly 1 million yuan. The hairdressing shop is deep in the streets and lanes, and is the closest to consumers. It is also the best to grasp the fashion trends of the season. The company tried to let consumers understand the hair products through the salon channel, improve the brand awareness of Rebecca wigs, and then lay the salon channels.

China's hairdressing industry is mixed, and there are only a handful of national chain salon brands. Chain stores in the beauty and hairdressing industry are only 1% of the industry in terms of the number of stores and turnover. At present, the well-known high-end chain salon brands include Dongtian Model, V-Star, Toni&Guy, Sassoon, and Tiffany.

Positioning the high-end hair salon for brand cooperation: Since Rebecca is positioning the mid-to-high-end wig brand, in line with the brand image positioning, the company plans to cooperate with the high-end hair salon, and start from the group of hair stylists and hairdressers. Promotion. The development of the company's salon channel has been through 1-2 years of trial preparation, we expect a major breakthrough this year, the salon brand channel will be accelerated.

Dongtian is one of the few high-end fashion styling chain salons in the country. As a star brand in the forefront of the fashion industry, it has been favored by the capital market in recent years. Dongtian styling is a famous fashion stylist in China. Li Dongtian, the godfather of Chinese makeup, founded in 1999 the domestic professional authority style and fashion communication and education with core business such as hair styling, makeup styling, image consultant, photography production and hairdressing makeup teaching. mechanism. Dongtian modeling currently has about 30 image stores in Beijing, Shanghai, Chongqing, Nanning, Wuhan, Wuxi and Weihai.

On the 7th of 2009, Beijing Xinzhongli Investment invested in Dongtian Fashion (Beijing) Culture Communication Co., Ltd., involving 21% equity. In November 2010, Sequoia Capital China Fund, Shenzhen Chuangfang Investment and Advantage Capital (Private Investment) invested in Dongtian Fashion (Beijing) Culture Communication Co., Ltd. with an investment of RMB 55,548,700, involving 18.62% of the shares. In January 2011, Shenzhen Innovation Investment Group Co., Ltd. completed its investment in Dongtian Fashion (Beijing) Culture Communication Co., Ltd. with an investment of RMB 55.25 million and a shareholding of 9.98%. In November 2012, Zhongjin Jiatai's Zhongjin Jiatai (Tianjin) Equity Investment Fund Partnership (Limited Partnership) invested in Dongtian Fashion (Beijing) Culture Communication Co., Ltd., and subscribed for 8.181 million registered capital, accounting for 21.43%.

Cross-border e-commerce set sail: In addition, we are very optimistic about the company's cross-border e-commerce channel development. The company adopts a self-built platform model to control the channel construction, operation, traffic and big data management, and consumer feedback. Stronger, on the other hand, will further highlight the brand image and international status of the company's global wigs. The cross-border e-commerce platform not only can bring the incremental international market to the company, but also deepen the product sales in the original market. The B2C model reduces the traditional foreign trade circulation, reduces the channel cost and improves the profitability (we expect the platform retail price to be better than the distribution wholesale). The price is 30-40% higher).

The Group's Baiyunshan project progressed smoothly: Rebecca Group spent RMB 180 million in September 2014 to acquire 100% equity of Baiyunshan Tourism Company in Luoyang County. The group's development ideas for Baiyun Mountain are divided into Baiyunshan high-end leisure health resort, Foping Alpine Sports and Leisure Resort, Checun Valley National Agricultural Park and Checun Tourism Resort. The group plans to complete the first phase of construction within one year, including the construction of the Baiyun Mountain and Zhengzhou Expressway exit tunnels (currently 120 kilometers apart, shortened to 15 kilometers after completion, the project is funded by the government) and the construction of the ropeway in the scenic area. The construction of a small holiday town will begin next year.

Maintain “Buy” rating: We forecast the company's 2015-17 EPS to be 0.21, 0.24, and 0.31, respectively, with a year-on-year growth rate of 26%, 17%, and 27%, corresponding to PE of 51X, 45X, and 35X. The demand for foreign markets in the wig industry is picking up, the domestic consumption concept is being cultivated, the company's performance is bottoming out, the camp is expected to recover, the low cost is locked, and the profit rebounds. At the same time, the company's cross-border e-commerce has been launched, and we expect to cooperate smoothly with the hair salon. The channel will be greatly enhanced. We are optimistic that Rebecca will maintain a “Buy” rating for the next stage of excess returns for new varieties with larger expectations.