Core Viewpoint - Blue Moon, a leading brand in clothing care, is experiencing significant challenges with a loss of over 1 billion HKD in its main product line, prompting a rapid adjustment in marketing strategies to control costs while still facing uncertainty in achieving profitability [2][3]. Marketing Strategy and Financial Performance - In 2024, Blue Moon's marketing expenses reached nearly 60% of its revenue, nearly doubling since 2020, leading to a loss of 749 million HKD despite a revenue increase of 16.8% [5][13]. - The company has reduced its sales and distribution expenses to 19.1 billion HKD in the first half of 2025, down from approximately 22.01 billion HKD in the same period last year, marking a 13.2% decrease [6]. - Advertising expenses in 2024 were 2.12 billion HKD, 3.87 times that of 2020, while promotional expenses surged to 25.49 billion HKD, a 156% increase from 2023 [7][13]. Revenue and Market Share - Blue Moon's online channel revenue exceeded 5.1 billion HKD in 2024, accounting for 59.7% of total revenue, breaking a previous stagnation between 3.7 billion HKD and 3.8 billion HKD [8]. - However, the company reported a decline in key financial metrics, with cash reserves decreasing by 17.3% to approximately 4.36 billion HKD and gross profit dropping by 3.9% to about 1.765 billion HKD [15]. - The core product line, clothing care products, saw a sales decline of 1.26 billion HKD in the first half of 2025 compared to the same period in 2024, contributing to an overall revenue drop of about 3% [16][17]. Competitive Landscape - The domestic clothing care market is highly competitive, with Blue Moon's market share fluctuating between 24.4% and 27.9% from 2020 to 2024, while facing challenges from emerging brands and private labels [20]. - New product categories such as laundry pods and specialized detergents are rapidly growing, with the pod market expanding from 1.4 billion HKD to 6.985 billion HKD between 2020 and 2024, indicating a shift in consumer preferences [20]. Future Outlook - Despite the challenges, Blue Moon's operational loss decreased by 43.9% to approximately 526 million HKD in the first half of 2025, suggesting potential for a turnaround if cost control measures continue [21].