Core Viewpoint - Blue Moon, a leading brand in clothing care, is facing significant challenges as its marketing expenses rise sharply while its net profit declines, leading to concerns about its sustainability and profitability in the long run [2][3][5]. Marketing and Financial Performance - Blue Moon has significantly increased its marketing expenses since its IPO in 2020, with marketing costs expected to account for nearly 60% of revenue in 2024, doubling since 2020 [3][7]. - Despite rising revenues, Blue Moon reported a net loss of over 6 billion HKD in 2024, marking its first annual loss, raising questions about its strategy of prioritizing revenue growth over profitability [3][6][7]. - The company's promotional expenses surged to 25.49 billion HKD in 2024, a 156% increase from the previous year, contributing to the erosion of net profit [7][8]. Sales Channels and Revenue Breakdown - In 2024, online sales revenue exceeded 51 billion HKD, accounting for 59.7% of total revenue, marking a significant shift from previous years [8][9]. - The sales performance during promotional events like the "618" shopping festival was notable, with Blue Moon achieving top rankings in various e-commerce platforms, yet this did not translate into profitability [6][10][12]. Competitive Landscape - Blue Moon remains a top player in the clothing care market, but faces intense competition from both international giants like Procter & Gamble and Unilever, as well as emerging local brands [14][15]. - The market has evolved into a multi-category competition, with new product types and brands entering, which poses a risk to Blue Moon's market share [15][16]. Research and Development - Blue Moon has maintained a low investment in research and development, with expenses not exceeding 100 million HKD from 2021 to 2024, indicating a continued focus on marketing over innovation [13][16].