In 2008, M&G built the "M&G Partner Pyramid" marketing structure, which attracted a large number of agents and stores through a distribution system and high subsidies.
Image source: M&G shares prospectus, Internet
The "M&G Stationery Model Store" has rapidly grown to an astonishing list of lebanon whatsapp phone numbers of about 50,000 stores in just five years. M&G Stationery has once again carried out unified upgrades and renovations on its departments and outstanding stores, transforming them into "M&G Premium Sample Stores."
This S2B2C business model enables M&G to firmly bind the interests of suppliers, merchants and consumers together, achieving a win-win situation for all three parties.
It is worth mentioning that M&G not only earns steady sales revenue from stationery products, but also increases revenue through its own supply chain services and management fees.
Source: Huachuang Securities Research Report
M&G Holdings describes its revenue structure as "one body and two wings", with the "one body" being the company's traditional stationery business, and the "two wings" being the flagship retail store business (M&G Lifestyle Store and Jomoo Sundry Store) and office direct sales (M&G Kolip) business.
Source: M&G's 2024 third quarter report
These "two wings" are new directions that M&G has been continuously exploring after its traditional business. However, even though both of them have shown encouraging revenue growth trends, the declining gross profit margins also reveal the reality that it is difficult for them to make a profit.
The main "one body" is not growing fast enough, and the newly added "two wings" are difficult to make profits. This is the main reason why Chenguang is currently in trouble.
03
