The closing of the store has constituted a breach of contract, and both parties will negotiate the contract. Hubin 88 store is the first store of Haydon black hole in Hangzhou and opened in September 2021. In the press release, Haydon black hole called the store a brand 2.0 image concept store.
The store is of great significance to Haydon black hole, which is its first store in East China. After the store opened, Haydon black hole successively opened two new stores in Shanghai, one of which is close to the Bund, which is a manifestation of accelerated expansion. In December 2021 alone, Haydon black hole opened six new stores.
During the same period when the Hangzhou store opened, Haydon black hole announced that it had completed the round a + financing of US $100 million, with a post investment valuation of US $1 billion. According to the official official account of Haydon black hole, there are 14 stores in total, which means that the average value of each store exceeds 70million US dollars. However, affected by the epidemic, four stores in Haydon black hole cannot operate normally, accounting for nearly 30%.
Interface fashion sought a response from Haydon black hole on the closing of Hangzhou store and the current operation status, but as of press time, no reply has been received.
The phone of Haydon black hole Hangzhou store on the public comment page shows that it has been shut down. The latest comment comes from April 12, but Hubin 88 customer service reconfirmed that the store has been closed, and the store is no longer displayed on the list of Haydon black hole official applet stores.
According to the plan, Haydon black hole will enter many key cities in China to open more than 20 stores in 2021, and achieve the goal of more than 100 stores in 2023. However, from the current situation, the total number of Haydon black hole stores has not been opened to 20, and the opening time of Xi’an and Wuxi stores under decoration has not been determined.
In recent years, the beauty collection store track broke out, and Haydon black hole has also been a potential seed.
In the trend of beauty collection stores rising in 2020, the first batch of brands represented by toner and wow color established the marketing mode of social media clock in communication with colorful beauty egg wall, and became popular through sales parity of local beauty brands.
The subsequent Haydon black hole opened its first store in Wuhan Chuhe Han Street on December 31, 2020, selling beauty samples and formal clothes in a 1000 square meter creative space on the upper and lower floors. This model is favored by investment institutions. Haydon black hole obtained Angel round financing from Hillhouse and Tencent at the beginning of its establishment.
People will compare Haydon black hole with harmay Huamei, which was established earlier. They are mainly selling medium and high-end beauty brands. Harmay Huamei was the first to sell niche beauty brands through Taobao. Its first offline store was located in Hong Kong, and its first store in the mainland was opened on Anfu Road, Shanghai.
The model of selling beauty samples has sprung up from harmay Huamei. In the early stage of opening new stores in Beijing and Shanghai, it often attracts a large number of consumers to queue up. The rugged industrial style in the store has become the decoration mode of offline stores of new consumer brands. This mode can be summarized as turning the soft decoration into a device that changes at any time, and the hard decoration on the wall without decoration has the effect of soft decoration to show the style.
Similar decoration styles can also be seen in Haydon black hole stores. However, unlike harmay Huamei’s early focus on first tier cities such as Beijing and Shanghai, after the establishment of Haydon black hole, it expanded to cities outside the first tier at a very fast speed. The location covers cities such as Yinchuan, Hohhot and Urumqi to avoid positive competition.
Tianyancha information shows that the suspected actual controller of Haydon black hole is wow color Investment Hong Kong Limited, which is the controlling shareholder of wow color, a beauty collection store brand. It can also be seen that Haydon black hole is wow colour’s upgrade attempt at the beauty collection store track.
However, from Haydon black hole to wow color, the recent performance is not satisfactory. According to wow colour’s official website, as of January 2022, the total number of stores recorded across the country was about 135, half less than 300 in the peak period, and the number of stores in Beijing, Shanghai, Guangzhou and Shenzhen was 3, 4, 11 and 3.
Zhong taipeng, co-founder and chief operating officer of harmay Huamei, said in an interview with interface fashion that the mode of large-scale distribution of cosmetics collection stores has developed to the ceiling. Other local high-end beauty collection stores with similar operation mode and decoration style in the market make the competition of this track more intense.
To improve the revenue level of emerging high-end beauty collection store brands, one way is to speed up the opening of stores and increase the source of income; The other is to adjust the operation and marketing mode to attract new consumers and improve the loyalty and repurchase rate of old consumers.
This explains to some extent why both harmay Huamei and Haydon black holes have accelerated the pace of opening stores in the near future.
However, in terms of operation mode, harmay Huamei has become a few sales channels of these brands in China because of its early attention to minority brands, so as to improve the repurchase rate. In addition, harmay Huamei has also recently reduced its dependence on the collection store business by investing in other brands.
Haydon black hole focuses on high-end big brand products and competes with other beauty collection stores and brand official channels. The beauty industry media cosmetics Finance Online quoted sources as saying that the gross profit margin of Haydon black hole is likely to be less than 10%, which is related to the measures taken by some Haydon black hole stores to sell high-end products at high discounts to attract consumers.
Under such circumstances, it is undoubtedly worth asking how long Haydon black hole can continue to expand by burning money and opening stores. In recent years, the hot wave of beauty collection stores may also lead to a new inflection point.