---
title: "Crossing Cycles: Decoding Blue Moon"
description: "On April 20, Chnbrand released the 2021 (11th) China Brand Power Index (C-BPI) report, ranking Blue Moon's laundry detergent and hand soap products first for the 11th consecutive year (2011-2021). On April 22, data from the China General Chamber of Commerce and the China National Commercial Information Center showed Blue Moon's laundry detergent ranked first in comprehensive market share for 12 consecutive years (2009-2020), and its hand soap ranked first for 9 consecutive years (2012-2020)."
author: "秦淮"
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published: "2021-04-28"
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---

# Crossing Cycles: Decoding Blue Moon

> On April 20, Chnbrand released the 2021 (11th) China Brand Power Index (C-BPI) report, ranking Blue Moon's laundry detergent and hand soap products first for the 11th consecutive year (2011-2021). On April 22, data from the China General Chamber of Commerce and the China National Commercial Information Center showed Blue Moon's laundry detergent ranked first in comprehensive market share for 12 consecutive years (2009-2020), and its hand soap ranked first for 9 consecutive years (2012-2020).

On April 20, Chnbrand, an authoritative Chinese brand rating agency, released the 2021 (11th) China Brand Power Index (C-BPI) brand ranking and analysis report. Blue Moon's laundry detergent and hand soap products ranked first in the C-BPI industry brand power index for the 11th consecutive year (2011-2021).

On April 22, the China General Chamber of Commerce and the China National Commercial Information Center released data showing that Blue Moon's laundry detergent achieved the highest comprehensive market share in China's laundry detergent market for 12 consecutive years (2009-2020); Blue Moon's hand soap achieved the highest comprehensive market share in China's hand soap market for 9 consecutive years (2012-2020).

On December 16 last year, Blue Moon was listed on the Main Board of the Hong Kong Stock Exchange, becoming the first large Chinese daily chemical company to list in Hong Kong. On March 29, 2021, Blue Moon released its first annual report after listing: Blue Moon's total revenue in 2020 was HK$6.996 billion, with net profit of HK$1.309 billion for the year, a year-on-year increase of 21.3%.

**When these impressive results are presented, they also spark heated discussion. This validates Mr. Zhang Ruimin's words: There are never successful enterprises, only enterprises of the era.**

In the past, in the FMCG industry, when it came to daily chemicals, one had to mention P&G and Unilever. Now, through Blue Moon, we also see the future of local brands. Founded in 1992, Blue Moon has been at the forefront for nearly 30 years. What it has done, what it has not done, and why it has been able to cross this volatile, rapidly iterating industry cycle and become a standout, is worth our reflection and learning.

**-01- Continuously Crossing—the Consumption Cycle**

To discuss how Blue Moon crosses cycles, let's start from the consumption cycle dimension. If simply divided, I think there are three cycles: **from basic commodities, to reliable brands, and now to the era of consumption upgrade.**

Before the 1990s, consumers were satisfied with the most basic needs; having a product was enough, and quality was not a concern. From the 1990s to the early 21st century, the concept of brands began to emerge, and brands were seen as a guarantee of reliable quality.

Before 2008, laundry powder dominated the domestic laundry detergent market, with laundry liquid accounting for less than 4%. Blue Moon, by being the first to promote laundry liquid nationwide, opened the era of China's laundry "liquid" age and became a reliable and well-known brand at that time.

From the 21st century to the present, with the information revolution brought by the internet, consumers' ability to recognize brands has improved, and the rise in economic level has led them to pursue product quality and individuality. Consumers have begun to take the lead, with more and better choices. Typically, demand selection based on segmented scenarios has become an increasingly mainstream consumption characteristic.

During this period, Blue Moon also initiated product innovation based on changing needs. In 2015, Blue Moon broke through technical difficulties and launched the first domestic "concentrated+" laundry liquid with pump-head metered packaging, "Machine Wash Supreme." Subsequently, in 2018, it upgraded to launch the Supreme Biotechnology laundry liquid, continuously promoting quality optimization through technological innovation and standing at the industry's high point.

In the innovation of the hand soap category, Blue Moon's performance is also outstanding. In 2000, it launched Aloe Antibacterial Hand Soap, and over the following years, it successively launched Vitamin E Moisturizing Hand Soap, Children's Hand Soap, and Fruit Bubbles Children's Foaming Hand Soap. In 2019, in line with the consumption upgrade trend, it launched "Pure Enjoy Amino Acid Hand Wash," achieving a leapfrog upgrade in hand soap products. In 2020, it launched new foam antibacterial hand soap and Foam Time Kitchen Hand Soap, and in 2021, it launched automatic hand soap dispensers and no-rinse antibacterial hand soap.

**The continuously extending product chain has gradually covered most life scenarios, meeting the diverse and segmented hand-washing needs of consumers.**

Whether in the laundry category or the hand-washing category, Blue Moon's products embody deep insights into consumer groups, usage scenarios, usage methods, and user experience. Especially around hand washing and laundry, in specific scenarios, Blue Moon can basically provide corresponding cleaning solutions for the cleaning problems consumers want to solve.

Looking at Blue Moon's product matrix along the historical axis, we can see that Blue Moon has made corresponding cycle layouts in different consumption cycles. Of course, if we extend our perspective further, what is the next consumption cycle? It is quality consumption.

And Blue Moon has also made full preparations in the laundry field. In recent years, Blue Moon has continued to increase its focus on concentrated products and has achieved results: Blue Moon's prospectus shows that from 2017 to 2019, for three consecutive years, Blue Moon's laundry liquid, hand soap, and concentrated laundry liquid products ranked first in market share in their respective markets.

**It is foreseeable that with the advent of the quality consumption era, easy, convenient, efficient, and environmentally friendly concentrated laundry liquid will be favored by more people.**

**-02- Continuously Crossing—the Market Cycle**

**What is a market cycle? I believe that in the FMCG field, the market cycle is the iteration and upgrade of how to reach consumers and the forms (channels) of reaching them.**

Before 2004, the mainstream channel form was small grocery stores. In 2004, the golden age of KA stores arrived. After 2013, online e-commerce flourished, and now there is an omni-channel layout of online and offline. Facing market cycles, Blue Moon has always maintained channel insight, taking the lead in layout and continuously deepening and refining operations.

According to the financial report, in 2020, Blue Moon's offline revenue was HK$3.222 billion, direct major customer sales revenue was HK$994 million, and offline distributor revenue was HK$2.228 billion. On the online side, since July 2012, Blue Moon began its strategic layout of online e-commerce channels, with online revenue of HK$3.774 billion in 2020.

According to Frost & Sullivan's report, in 2019, Blue Moon's laundry liquid online channel retail sales ranked first with a market share of 33.6%, more than twice that of the second-ranked Chinese laundry liquid company. During the 2020 Double 11 shopping festival, Blue Moon won first place in sales rankings for clothing cleaning categories on multiple e-commerce platforms such as Tmall, JD.com, and Suning.com. Offline, from 2017 to 2019, calculated by retail sales price, Blue Moon has maintained the first share in China's offline laundry liquid market.

In the current omni-channel layout, Blue Moon develops both online and offline. Offline, it focuses on the sinking market and continuously consolidates offline presence. As of June 2020, Blue Moon had 2,600 retail sales outlets offline, covering nearly 70% of all provinces in China, with 1,403 offline distributors from third-tier and below cities. At the same time, it actively expands to new retail points such as gas stations, pharmacies, and cosmetics stores.

In addition, online, besides deeply cultivating mainstream e-commerce platforms, Blue Moon also actively lays out emerging e-commerce channels, such as social e-commerce.

**We often say that changes in channels bring about market reshaping. And in this, there will be the rise and fall of enterprises. It can be seen that Blue Moon has maintained keen observation and made positive responses in the face of channel changes in recent years.**

According to public reports, benefiting from the dual dividends of e-commerce rise and channel sinking, Blue Moon has significant advantages in omni-channel layout and has gradually established a full-channel layout of "e-commerce platforms + direct-sales major customers + offline distributors," helping the brand penetrate every channel and scenario where consumers are.

**-03- Decoding: Behind Crossing Cycles**

With the addition of honors such as listing and awards, Blue Moon has become a microcosm of a new-era enterprise.

Back to the origin, let's think again: In an era of rapid change, why can Blue Moon continuously cross cycles and keep pace? I think besides a series of measures such as product upgrades, marketing innovation, and rapid response, it also cannot be separated from the underlying logic of business operations.

**1. Centered on consumer demand**

You might think that being consumer-centric means that as long as you research and produce good products, you can meet consumer needs, but the reality may be more than that. In Blue Moon's understanding, behind demand is not a single good product, but based on the different scenarios, different groups of people, and different experiences behind the demand, providing differentiated solutions.

Looking back at Blue Moon's development history, we can see that Blue Moon has always been close to consumers, but also walks ahead of consumer needs. It not only provides innovative and differentiated good products, but also provides a complete set of solutions: product + method + service, conveying the correct cleaning concept to consumers. For example, Blue Moon provides consumers with a 24-hour 400 hotline service, so that consumers can call for consultation at any time if they have cleaning problems; cleaning consultants provide online services and customized cleaning plans; and in terminal stores, it carries out knowledge marketing activities to explain product knowledge and usage methods, getting close to consumers and solving their problems.

**2. With science and technology as the starting point**

Science and technology are the primary productive forces. Without good technology, it is impossible to stand at the industry's high point. On this point, Blue Moon's research in the field of concentrated laundry liquid is the most prominent. From the first domestic "concentrated+" laundry liquid with pump-head metered packaging, Machine Wash Supreme, in 2015, to the upgraded version in 2018, Supreme Biotechnology laundry liquid, Blue Moon's innovation is evident.

It is understood that the "concentrated+" formula was an ideal formula launched by Blue Moon after two years of design, with more than 1,000 formulas designed and more than 10,000 tests conducted. I think these are enough to show the importance Blue Moon attaches to product technology innovation.

Without this "obsession" with technological innovation, it would have been impossible to remain at the forefront of the industry for 29 years and lead the industry's progress and development.

**3. Guided by a focus on cleanliness**

Regarding the focus on cleanliness, we have to go back to the founder Luo Qiuping. He graduated from Wuhan University with a degree in organic chemistry and has been deeply involved in the washing market for more than 30 years, which is enough to show his love and focus on the cleaning cause.

The past 30 years have been the 30 years of China's economic takeoff. Many people would continuously expand and invest in other industries to seek phased dividends. But since its establishment in 1992, Blue Moon has always focused on the cleaning cause. And Blue Moon, which has ranked first in comprehensive market share and brand power index for many consecutive years, has not relaxed its continuous focus on its main business because of its success.

**Always focus, resist temptation, and devote wholeheartedly to washing.** I think this may be Blue Moon's unchanging purpose.

Why can it cross cycles? To summarize, it is these three sentences: centered on consumer demand, with science and technology as the starting point, and guided by a focus on cleanliness. These seemingly simple three sentences have been practiced by Blue Moon for nearly 30 years, and in my opinion, without the guidance of these underlying principles, an enterprise cannot become big, let alone go far. Find the right track, move forward with focus and persistence, and do not get lost in short-term dividends. Patiently cultivate the market and wait for the next wave to come.

Just like Amazon founder Bezos's annual letter to shareholders, the core business philosophy behind it is the same: everything revolves around long-term value.

Tips will be paid 400-2000 yuan once adopted.


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