Jul 30, 2022
In Welcome to the Forum
The retail sales of China's beauty and skin care market has shown a growing trend. Except for the slowdown in 2018 (4.18%), the growth rate in recent years has fluctuated around 10%, and in 2019, the growth rate has reached 14.24% , the overall industry has not yet entered the mature stage of the industrial life cycle, and there is still a large room for growth and profit. (Data source: iResearch) When segmenting the cosmetics market, it can be found that the high-end market in the industry has a faster growth rate, much higher than the mass market. It is expected to maintain a growth rate of 30% in the future. Among the product categories, loose powder, makeup sets, lip gloss The demand for lip gloss and lip gloss is growing rapidly. (Data source: iResearch) (Data source: iResearch) From the fluctuation of the Baidu index, it can be seen that the average search volume of Perfect Diary is higher than that of Huaxizi, and both peaked during the Double Eleven event, but in mid-2021, Huaxizi’s search volume will overtake Perfect Diary In the same period last year, the search volume of Perfect Diary was higher than that of Huaxizi, which means that compared with Perfect Diary, in 2021, the attention of Nianhuaxizi brand has increased. (Source: Baidu Index) The figure below selects the Taobao sales data of the two brands in the three months before and after Double Eleven in 20 years. It can be seen that the sales volume of Perfect Diary is much higher than that of Huaxizi (about 2-3 times that of Huaxizi), and its country email list market share is much higher than that of Huaxizi. The share is larger, but the gap in sales between the two is significantly smaller than the gap in sales volume, which is related to the average unit price of the two products sold. The average product sold by Huaxizi is more than 140 yuan, which is about twice that of Perfect Diary. The following picture shows the development history of the two brands. It can be seen that their development time and history are relatively similar. Both brands were established in 2017 and launched many co-branded products in 2019. After 2020, they will open up markets abroad. s plan. The only difference is that Perfect Diary chose the online and offline development model after two years of development, while Huaxizi adopted the pure e-commerce model. Perfect Diary has frequent financing activities in recent years, which is favored by capital, and achieved an IPO listing in November 2020. The intensive financing activities provide conditions for Perfect Diary's "burning money" operation mode, which can make stable profits before it has formed. In the model, there is a large amount of funds to support the business activities of the enterprise. But in the long run, if it cannot turn losses into profits within a certain time frame and lose the favor of capital, it will be difficult to maintain the current operating model.