The ＂hard work＂ of domestic products： domestic beauty cosmetics, who can laugh at the end？

Yixian e-commerce has held the pause button pressed by the economy.

On the evening of November 22nd, Yixian E-commerce disclosed its performance report for the third quarter of 2022: The announcement showed that Yixian E-commerce achieved revenue of 858 million yuan in the third quarter.

Yixian e-commerce can almost be regarded as "one of the most incredible Internet companies in China".

The first is incredible. In the fast and unbreakable Internet competition in China, Yixian E-commerce completed its revenue from 0 to 3 billion yuan in only three years, which is the fastest brand in the history of China cosmetics industry.

The second incredible thing is that in the beauty field dominated by international giants, many brands, such as Perfect Diary and Little Odin, owned by Yixian E-commerce, have created explosions that are representative of the industry.

In the past, the outside world paid more attention to the growth rate of Yixian e-commerce, but ignored its efforts in product strength and strategy.

What is the growth way of Yixian e-commerce to hold the cycle?

Nowadays, in the beauty marathon, who has the endurance and determination to run the whole course?

Overall, the enhancement of hematopoietic capacity and the improvement of development resilience are the core keywords of this financial report.

At the beginning of this year, Huang Jinfeng, the founder of Yixian E-commerce, said frankly at the company’s internal meeting: "2022 is a very critical’ year of transformation’ for Yixian E-commerce, and we need to focus on hematopoiesis and transformation."

Under the impact of the epidemic, brands are facing great challenges, consumer habits on the demand side and public consumption awareness will also be reshaped, and demands for product quality will rise.

Yixian e-commerce has developed "muscles" in overcoming these challenges.

As can be seen from the financial report,In the third quarter of 2022, the focus of Yixian e-commerce is no longer the opponent, but how to strengthen its own advantages and achieve "reducing blood fat and increasing muscle".

What are the highlights of this financial report? Let’s draw a key point together.

1. Play combination boxing more decisively.

In the past, Yixian e-commerce was always equated with the perfect diary, but in fact Yixian e-commerce not only has a perfect diary. The data in this financial report is very telling:

The skin care business maintained a strong growth momentum, with revenue of 269 million yuan in the third quarter, a year-on-year increase of 33%, accounting for 31.4% of the total revenue; Among them, three mid-to-high-end skin care brands, including DR.WU Daerfu, EVE LOM and Galénic, saw their revenues increase by 69% year on year.

You know, high-end skin care and mass skin care are one of the hot tracks in the beauty market in the past two years.It is also a key step for Yixian e-commerce to "play high-end".

Looking back, Yixian E-commerce has successively acquired high-end skin care brands Kelanli Galénic and Eve Lom in high profile, and won the business right of efficacy skin care brand DR.WU in Chinese mainland, which is already being laid out.

Holding a high-end brand in one hand and the ability to create explosive products in the other, Yixian e-commerce did not live up to expectations.

Galenic, a high-end skin care brand, cut into the anti-aging track with the new platinum "Xuezao" essence, and the double eleven ranked in the top five of Tmall’s import essence hot sale list. The single product "Anti-oxygen No.1" VC essence double eleven achieved a sales increase of 580%, ranking the new brand Top1 of Tmall.

EVE LOM, a luxury skin care brand, is committed to continuously consolidating the mind of the SPA brand. Together with Harold Tea Room, it launched afternoon tea with the theme of "Secret Manor".

In terms of products, create a new 3R constant gold essence and cut into the core anti-aging track. This year’s double eleven ace single classic cleansing cream won the first place in Tmall’s high-end makeup remover. The brand as a whole has achieved steady growth in China and overseas markets.

This means that Yixian e-commerce has mastered a set of mature and reusable growth methodology. After starting with cosmetics products, Yixian e-commerce’s "second growth curve" has taken shape.

2. More decisive market play.
Once again, you can find an interesting thing by breaking and disassembling this financial report:

In the third quarter of 2022, the total operating expenses decreased by 33.1%, from 1.28 billion yuan in the same period of last year to 857 million yuan; Sales and marketing expenses were 564.8 million yuan, compared with 911.3 million yuan in the same period of last year, which was also shrinking.

This represents that at the critical moment of strategic transformation,Yixian e-commerce has a more decisive market play, and strives to make every penny spend on the cutting edge.

For example, during the Double Eleven period, the sales of Pink Bear Pico Bear X Sanliou co-branded products exceeded 20 million, ranking top 1 in Tmall’s lip glaze sales list; The sales volume of explosive silkworm pens in Odin, Jr. exceeded 10 million, and it became the list of explosive products of eyeliner of silkworm pens in Tik Tok and the category TOP1 of silkworm pens in JD.COM.

The data shows that during the reporting period, many of its brands have made outstanding achievements on the Tik Tok platform, and the live broadcast business in Tik Tok has also become a new growth engine of Yixian e-commerce.

In the third quarter, Perfect Diary Tik Tok channel achieved a year-on-year growth rate of ninety-seven percent, and the ranking of makeup shops rose from the third to the second.

In terms of brands, the new Odin Sleeping Silkworm Pen exploded in July, selling 30w+ pieces, and it ranked No.1； on the list of explosive products of eyeliner in Tik Tok. The total exposure of Pink Bear vibrato short video content exceeded 100 million in August, and the sales volume of the new product "Breathing Lip Glaze" ranked TOP1 within 30 days.

By incubating and absorbing new brands, Yixian has formed eight brand matrices of the Group.

More precisely, a multi-brand and group-based beauty company in transition is getting better and better, aiming to grow into a beauty group that understands needs, can innovate and has high quality.

Affected by multiple factors, the current offline retail and online ecology of beauty cosmetics have changed dramatically, and the overall GMV growth rate on the line has slowed down, and offline has been subjected to many tests of declining passenger flow.

The epidemic is a test for all enterprises. Is it just "surviving"?

Absolutely not.

The test is whether an enterprise has its own "immune" system and can return to a healthy state; What is more testing is the attitude towards the future.

In the context of the cold industry, Yixian e-commerce can adjust quickly, thanks to a key word: "hard power".

In research and development, Yixian e-commerce dares to save money, is willing to save money, and will also save money.

In the first three quarters of 2022, Yixian e-commerce invested more than 100 million yuan in R&D, and R&D expenses accounted for 3.83%. This investment ratio belongs to the head level in domestic beauty listed companies.

Look at last year, the annual R&D investment of Yixian e-commerce increased by 113.6% year-on-year, exceeding 142 million yuan.Even if it is taken out, it is not inferior to the global industry R&D investment.

The original open innovation system of Yixian, Open Lab, is different from the traditional closed R&D model, with Yixian e-commerce as the leading core, including the world’s top partners such as raw materials, R&D and production.

Take the small category of eye shadow as an example. At present, Yixian Open Lab has more than 500 exclusive raw materials, from matte to pearlescent, covering almost all the textures of eye shadow products.

In the traditional mode, brands will cooperate with some upstream suppliers through their own factories or OEMs, but the difference of Open Lab is that it can integrate brand research and development, and cooperate with each other from raw materials, formulas, production processes to quality inspection to jointly break through technical difficulties.

This is not a simple "template", but a real innovation.

Yixian e-commerce has established in-depth cooperation with many well-known institutions at home and abroad, such as Institute of Chemistry, Chinese Academy of Sciences, National Nano-drug Engineering Technology Research Center of Huazhong University of Science and Technology, Morin Technology Group, 3D Skin Research Institute of Medical College of Lyon University, France, and Naolys, a training institution in plant stem cell, France.

The new Perfect Diary Concealer also uses SmartLOCK? technology.

As of March 2022,Yixian e-commerce has 121 patents worldwide, including 39 invention patents, which is strength and confidence.

It can be seen from these that Yixian E-commerce has continuously deepened its research and development strength from single brand to multi-brand, from makeup to multi-category development, and aims to grow into a beauty enterprise with global career.

Conclusion:

The outbreak of the consumer side is also forcing the evolution of the production-side enterprises.

In the field of domestic beauty, many people are gearing up, and they don’t lose one move in technology, supply chain, talent, traffic and operational experience.

However, in the face-to-face training of young people, Yixian e-commerce has obviously formed its own unique product strength and values, and is very good at continuously iterating and updating products according to user feedback.

Might as well give domestic beauty a little time.

The future of China’s beauty brand has just begun.

Author | Zhang Yiqi