Investment in New Channels to Fuel Top-Line and Profit Growth for Blue Moon

As one of the major players in the home care sector in China, Blue Moon has been an early mover in terms of product innovation and channel penetration, which has driven above-industry sales growth in recent years. The majority of Blue Moon’s sales come from laundry detergent, where the market has expanded at a mid-single-digit compound annual growth rate in the past decade. Consumption premiumization coupled with rising per capita income has led to a market transition from powder detergent to liquid detergent. Blue Moon was one of the early movers in the latter category and has been the market leader in terms of value share for the past 10 years. The company’s early entrance in the liquid soap market with competitive offerings has helped secure its number-one position during the same period, despite the advent of international peers such as Procter & Gamble and Reckitt Benckiser. These investments in products that could cater to shifting consumer preferences have resulted in satisfactory returns for Blue Moon.