Yatsen Holding who started up the rapid-growing China cosmetic brand Perfect Diary, has its laser focus on the social media generation nowadays.
For your information, Yatsen nearly quintupled their revenue in just a year. It has boasted a market capitalization of around $11 billion. In 2019, The company’s revenue boosts up to 3 billion yuan ($457 million) from the year-earlier 635 million yuan.
Yatsen said in its November prospectus that their typical process from concept to launch only take less than six months. According to the CIC Report, his is much faster than international brands that typically takes seven to 18 months for new product development.
About the company of Perfect Diary
CEO Huang Jinfeng has co-founded Perfect Diary in 2016. His resume includes a stint at Procter & Gamble’s China business. After that, Yatsen established Perfect Diary in the following year.
Initially, Perfect Diary sold its product online, the group then expanded it into brick-and-mortar stores. Building such cosmetic brand among Generation Zers helped Zhang fueled the brand’s rise.
Although Chinese beauty production have long struggled in the local market, but Generation Z tend to show a strong preference for domestic brands. it is indeed a trend eroding outdated notions regarding cosmetics.
How Perfect Diary took advantage via social media
Perfect Diary took advantage via three secrets: speed, social media approach and affordability.
For example, Perfect Diary’s eye shadow palettes are packaged with the image of wild animals and China’s landscape. People would post photos of the product and photo of themselves wearing the products on social media. Hence, it will draw many customers to pay interests to the brand.
Yatsen is also selling its cosmetic products globally by launching an e-commerce site in Japan and also selling to Southeast Asia through Singaporean e-tailer Lazada, owned by China’s Alibaba Group Holding.
Furthermore, their cosmetic products are affordable as the price is less than half of what Western upmarket brands offer. Hence, it took advantage over common Chinese strength of price-competitiveness and put Perfect Diary’s lineup within reach for young generations.
The production is also outsourced to Italian and South Korean contract manufacturers that collaborated with European cosmetic brands. This enables Perfect Diary to have similar product quality with them.
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