In the past Double Twelve, Perfect Diary, a brand of Yatsen, became the sales champion of the cosmetics category of “1212 Tmall Year-end Celebration”. So far, Perfect Diary has won the Tmall Domestic Makeup Grand Slam, becoming the first domestic cosmetics brand to win the Tmall 2019 annual promotion. With online and offline linkage, Yatsen’s new retail exploration has also been successful. More than 30 offline experience stores have been opened across the country, deeply loved by consumers everywhere.
On December 26, Yatsen Global held a new retail sharing session in Shanghai with the theme of “Evolving New Retail, Future Unbounded.” At the meeting, the new retail headquarters of Yatsen Global was inaugurated, and the post-95 beauty consumption report was officially released. Secretary of the Fengxian District Committee of Shanghai Zhuang Mudi, Deputy District Mayor of Fengxian District, Shanghai Gu Yi, Founding Partner of CMC Capital Li Ruigang, Founder and Chairman of Yatsen Global Huang Jinfeng, Director of CMC Capital Xia Bei, Yatsen Global New Retail Business Department President Feng Qiyao, Chairman Tian Yong of Shanghai Zhenchen Cosmetics Co., Ltd., Chief Editor Yang Yudong of CBN and other guests and reporters from more than 20 domestic mainstream media attended the event.
Yatsen Global’s new retail headquarters unveiled
On December 26, Yatsen Global held the “Evolving New Retail, Future Unbounded” Shanghai Yatsen Global New Retail Sharing Session in Wujiaochang, Shanghai. As an explorer and leader of new cosmetics retail, Yatsen Global combined with one year’s practical experience to share with government leaders, well-known investors, and senior media professionals the staged summary and thoughts on cosmetics. In Feng Qiyao’s view, Perfect Diary can summarize the starting point and end point of the exploration and experimentation of Yatsen in the past year in four words, user value: “Future retail has no distinction between old and new, only whether it can create value for consumers.”
The new retail headquarters of Yatsen Global was inaugurated and established.
Subsequently, Xia Bei, director of CMC Capital, Tian Yong, chairman of Shanghai Zhenchen Cosmetics Co., Ltd., and Yang Yudong, editor-in-chief of CBN, and Feng Qiyao, president of the new retail division of Yatsen Global Dimensional, had an in-depth round-table discussion.
The guests discussed that with the continuous growth of the national economy and the country’s strong support for local culture, domestic cosmetics has become one of the crucial tracks in the beauty industry, and the industry has entered the fast lane of development. The market scale of our country’s beauty industry continues to expand steadily. In this process, international brands dominate and play a leading role in developing the domestic beauty market’s industrial chain. On this basis, local cosmetics companies have a clear competitive advantage in the mass market through their familiarity with local culture, in-depth channels, and deep understanding of consumers. However, it cannot be ignored that the development of domestic beauty products still faces many challenges.
Yang Yudong, editor-in-chief of CBN, participated in the round-table discussion
For example, accroding to Yang Yudong’s observations, although the new domestic products have performed very well in recent years, most of them are currently concentrated in the mass market. There are still significant obstacles for domestic brand to enter the high-end market and skincare industry. Xia Bei mentioned that they are facing fast-changing consumer groups, how should domestic brands keep up with them; at the same time, the upstream and downstream of the industrial chain are becoming complicated, and all links need to be highly coordinated to cope with the rapidly changing market and consumers.
CMC Capital Director Xia Bei participated in the round-table discussion
From the perspective of the supply side, Tian Yong pointed out that ensuring rapid innovation and ensuring product safety are the two critical challenges they are most concerned about from the perspective of the supply side.
Tian Yong, Chairman of Shanghai Zhenchen Cosmetics Co., Ltd. participated in the round-table discussion.
Following the wave of new retail, domestic brands began to explore the combination of beauty and new retail. How to perfectly integrate online and offline so that merchants can obtain the dual advantages of e-commerce and physical stores at the same time is the key to exploring new retail models. For example, the establishment of a data center and data standardization for online and offline businesses allows the company to make better decision analysis. Meanwhile, unfiy platform management and data, and standardize the process. Omnichannel membership management allows a more convenient shopping experience anytime, anywhere. The aforementioned are the directions that can be developed and explored in new retail. Besides, stores can also be set up more intelligently, such as setting up smart screen terminals, which integrate product knowledge, promotion, smart recommendation, user communication, online and offline member drainage, and other devices.
In the exploration of beauty × new retail,Yatsen Global is at the forefront. At the new retail sharing meeting, the new retail headquarters of Yatsen Global was officially inaugurated, marking the close cooperation between Yatsen Global and Shanghai Fengxian and the entire East China region. The progress of opening stores in East China shows that Yatsen Global has opened perfect diary experience stores in Shanghai, Hangzhou, Suzhou and, Nanjing, and stores in Changzhou and Ningbo are about to open. Yatsen Global will further accelerate the speed of opening stores in East China. It plans to open 200 stores in East China within three years.
Zhuang Mudi, Secretary of Shanghai Fengxian District Party Committee, delivered a speech.
After the unveiling ceremony, Zhuang Mudi, secretary of the Fengxian District Committee of Shanghai, delivered a speech on behalf of Fengxian District to express his warm congratulations on the establishment of the new retail headquarters of Yatsen Global, and placed high hopes on the future development of Yatsen Global and blessed Yatsen Global. Become an industry leader in Oriental Beauty Valley. He said: “We are willing to be your backing, and we are willing to pay for you. Our goal is to be a good ‘Gold Medal SA’. This is not empty talk. We have real goods, and a good legal environment will become the first goal of our “Gold Medal SA”
Li Ruigang, the founding partner of CMC Capital, pointed out that Yatsen Global’s pursuit of consumer group understanding, channel innovation, supply chain transformation, product quality research and development, and other aspects are entirely consistent with many concepts of CMC investment. He blessed and expected Yatsen to represent domestic products and a world-renowned Chinese cosmetic company.
Li Ruigang, a founding partner of CMC Capital, delivered a speech.
Post-1995 cosmetic consumption behavior data report released
For the consumer goods industry, to study an era, the most important thing is to learn the people behind it. The post-95s and post-00s born under the Internet era’s background have gradually become the leading force in the consumer field. Based on this, as the leading brand of the new generation of beauty in the industry, Perfect Diary, a brand of Yatsen Global, teamed up with the research team of the Southern Metropolis Daily Retail Laboratory to provide portraits of beauty consumers of the post-95s population (mainly from 1995 to 1999). In-depth research on consumption characteristics and consumption trends was conducted to form the “Post-95 Cosmetics Behavior Data Report”. The report was officially released at the new retail sharing meeting, using big data to outline young beauty consumers’ portraits and refine consumer insights .
Feng Qiyao, CEO of Yatsen Global New Retail Division, giving a speech and introducing the “Post-95 Cosmetics Behavior Data Report”
The report shows that the post-95s interviewed put on makeup more to please themselves, 34.79% of the respondents said they put on makeup almost every day, 92.46% of the respondents said they would put on makeup when they “go out for shopping and dating”, and nearly 55% would Make up in the workplace.
On the opening day of Perfect Diary’s Wanda concept store in Wujiaochang, Shanghai, a senior makeup artist introduced the products to fans.
It is worth noting that while the post-95s generations favor European and American brands, they also like domestic products. The proportion of respondents who have bought European and American brands and domestic brands is about 78%. This may be related to the improved quality and high-cost performance of domestic products. Over 90% of the interviewees said they had purchased “Perfect Diary” products. According to the data released by Tmall, domestic brands have accounted for 40% of the TOP 10 cumulative sales of cosmetics stores from January to September this year, and Perfect Diary ranks first. Respondents generally said that domestic products have become more cost-effective in recent years, and packaging has become more nad mroe exquisite. The sense of use is not worse than that of European and American brands.
The survey results also show that the proportion of consumption in offline stores is increasing gradually. Nearly 40% of respondents purchase beauty products through both online and offline channels. Almost 50% of respondents said that they made purchases definitely or usually when going to offline stores . 38.34% of consumers buy 4-9 lipsticks within a year.
How does Perfect Diary create “Baopin” (The top-ranked or best-selling product among the industry in a certain category)
At the new retail sharing meeting, Feng Qiyao, president of the new retail division of Yatsen Global, introduced several vital nodes of Yatsen Global along the way to the guests. Behind the phenomenal growth of Perfect Diary, product strength is the core of building its brand moat. There are traces to follow among one “Baopin” after another.
Feng Qiyao, CEO of Yatsen Global New Retail Division, answering questions from reporters
From the perspective of product development, Perfect Diary has a consumer-centric product development philosophy and process. Compared with traditional brands, Perfect Diary has many opportunities to interact directly with consumers. Perfect Diary talk to consumers and KOLs directly with product solutions and communicates with consumers in-depth in all aspects. Every consumer has opportunities to be a product designer. For example, after learning that “co-branded” and “high facial attractiveness” makeup significantly trigger the desire of post-95s generations to buy. Perfect Diary has successively released animal eye shadows co-branded with Discovery and eye shadows co-branded with China National Geographic magazine. They became “Baopin” as soon as they were launched.
Another example is the ampoules of Perfect Diary. Unlike most ampoule serum on the market that emphasizes anti-oxidation or anti-aging, Perfect Diary revolves around its fan users to develop products that focusing on the problems of non-compliance before makeup and repair after makeup to solve consumer pain points intimately.
Yatsen is preparing to build a cosmetics production base from the perspective of production and build its own factory. After completion, it is expected to become the most extensive cosmetics production base in Asia. At the same time, Yatsen increase investment in independent research and development, including formula research and development, improvement and upgrading, and hire top research and development experts to polish more and better products.
Perfect Diary Concept Store at Wujiaochang Wanda, Shanghai
Yatsen will increase investment in building its own quality system in terms of quality control, covering the entire production cycle of raw materials, production, and transportation. In November this year, Yatsen and SGS Standard Technology Service Co., Ltd. (SGS) signed a strategic cooperation agreement for in-depth cooperation in quality management, product evaluation, technical regulations, and other fields.
The whole link escorts the “explosive products” and builds a brand moat with product strength. Feng Qiyao said that the future competition point must be a competition between brands, not traffic, and Yatsen Global should be a beauty company with “chips”
Year-end summary of Yatsen Global
The full name of Yatsen Global is Guangzhou Yatsen Global Co., Ltd., which was founded in 2016 by three Sun Yat-sen University alumni. Yatsen Global is headquartered in Pazhou Artificial Intelligence and Digital Economy Experimental Zone, Haizhu District, Guangzhou. It is a fast-growing new Internet beauty retail company.
2019 is an excellent year for Yatsen. In 2019, Perfect Diary, a brand of Yatsen, became the first domestic brand to top the Tmall Double Eleven cosmetics list in history and was rated as the second most popular domestic product by Tmall during the 618 periods. Besides, Perfect Diary also won the Tmall makeup sales champion for 12 consecutive months, and took the Tmall 2019 annual sales promotion champion, with more than 20 million fans online. In offline channels , Yatsen Global e-commerce began to develop a new retail strategy across the country. More than 30 offline experience stores have been opened in various places. The country’s largest single-brand cosmetics offline store was launched on Chunxi Road, Chengdu, Sichuan in September, and the Tmall×Perfect Diary offline store was launched in Hangzhou in late December. In Shanghai, Wujiaochang opened a fashion and futuristic art makeup concept store.
Also in 2019, Yatsen Global and its brand Perfect Diary successively were awarded the “Top 100 Chinese Innovation and Growth Enterprises” by Entrepreneur State, “The Most Influential Innovative Enterprise in New Consumption of the Year” by Lieyun.com, “Consumer Company of the Year” by Sansheng , “2019 Most IN New Consumer Brand” by Guangdong e-Business Association, “Annual National New Domestic Product” by China Business News, “Annual New Consumer Brand” by Titanium Media and other major awards.
Next, Yatsen Global will adhere to the original intention of creating value for users, continue to introduce more high-quality, well-designed, and easy-to-use beauty products for consumers, continue to explore the new retail field of beauty, and move forward to the goal of opening 600+ stores within three year firmly.
Perfect diary concept store close-up
1.Shanghai Wujiaochang Concept Store: Provide customers with an immersive art experience
Perfect Diary Concept Store at Wujiaochang Wanda, Shanghai
On December 25, Perfect Diary Concept Store was opened officially at Wujiaochang Wanda, Shanghai, built with aesthetics and artistic concepts. It has two floors which covers nearly 600 square meters, and sets up various experience spaces, focusing on the theme of “searching for secrets without boundaries”. There are different color changes and levels of design on different floors. Also, the unique black BOX art installations whose interior allows colors and music to blend, breaks the boundary between art and makeup, and provides customers with an immersive artistic experience. There are no limits on space, no limits on vision, no limits on experience.
2.Hangzhou’s first store: equipped with “BLACK TECH” equipment to try makeup mirror
Perfect Dairy Longhu・Hangzhou Binjiang Sky Street Experience Store
On December 23, the Perfect Diary Longhu·Hangzhou Binjiang Tianjie Experience Store was opened officially. This is the 35th offline experience store of Perfect Diary. It is equipped with a “black tech” equipment trial mirror and an interactive platform for beauty products. Under the existing business model of the beauty industry, Yatsen Global utilizes digitization to empower its new retail strategy. It hopes to use the Perfect Diary Hangzhou experience store as a pilot to build a benchmark store for online and offline linkage.
3.Chengdu Chunxi Road Concept Store: The largest single-brand makeup offline store in China
Watch the video to take a look at the Concept store of Perfect Diary Chengdu Chunxi Road.
On September 7, Perfect Diary opened its largest concept store in China on Chunxi Road, Chengdu City, Sichuan Province. The Chunxi Road Concept Store is the country’s largest single-brand cosmetics offline store, with a mixed business format of more than 1,000 square meters. There are check-in points, product display, cafes, and member experience centers in it. Its role is to help Perfect Diary test the performance of a single-brand large-space store, and test its brand preference among consumers on Chunxi Road where brands are gathered. Since opening for more than three months, the concept store on Chunxi Road has delivered a surprising report card.
38F Poly Midtown Plaza, 23 Xuanyue East Rd, Haizhu District, Guangzhou Building 35 and 36,
No. 2519 Xingang East Road, Haizhu District, Guangzhou.