Benchmarked against the Winona? Yuyuan Enters the Market for Sensitive Skin
- Chaileedo Press
- Jul 14, 2022
- 4 min read
Abstract: Recently, CHAILEEDO has learned that Shanghai Yuyuan Tourist Mart (Group) Co., Ltd. (hereinafter referred to as "Yuyuan Inc.") has launched a skin care product brand that is fully developed and incubated by itself - YoganDerma.
As introduced by the relevant brand principal of YoganDerma to CHAILEEDO, "YoganDerma is positioned as a dermatological-grade skin care brand focusing on sensitive skin repair. It is expected to open a Tmall store at the end of July this year and use it as its main channel. The product will be priced between USD28 to USD49." The other party also stated that the products of YoganDerma have an exclusive and researched ingredient "Yohealix-4R™", and the product packaging is made of environmentally friendly materials, medical-grade packaging, aseptic filling and Braille applications.
It is worth mentioning that after seeing the relevant promotional materials of YoganDerma, an industry insider thinks, "This looks like benchmarked against the Winona." The insider said that no matter the brand positioning or the characteristics of the first series of products, as well as the first impression of the packaging design, coupled with the claim of focusing on sensitive skin repair, etc., it is difficult not to think of Winona, the "top brand" in the sensitive skin market.
It is undeniable that the market track targeted by YoganDerma has indeed grown rapidly in recent years. According to Euromonitor statistics, the market capacity of dermatological-grade skin care products in China in 2021 was about USD3.72 billion, and the compound annual growth rate of the dermatological-grade skin care products market from 2016 to 2021 reached about 32.50%, which was much higher than the overall growth rate of the cosmetics industry.
Among them, "sensitive skin" repair has attracted much attention from consumers. On Xiaohongshu, there are more than 1.78 million notes related to it. In May of this year, a research report released by Shengang Securities showed that from 2022 to 2025, the scale of China’s sensitive skin care market is expected to be USD4.667 billion, USD5.816 billion, USD7.201 billion, and USD8.862 billion, respectively, with a year-on-year growth rate of 25.62%, 24.63%, 23.79%, and 23.07%.
Because of the great market potential, many cosmetic companies have been involved in this track in recent years. However, it is worth noting that consumers are more clear about the consumption purpose of professional sensitive skin brands. According to the "White Paper on Market Trends of Sensitive Skin" released by Taobao Tmall's FMCG business department, the TOP10 brands preferred by people with severe sensitive skin are mainly professional sensitive skin brands, with Winona, Freeplus, Curel, Avène and other brands becoming the first choice.
According to Euromonitor data, in 2021, Winona brand ranked first in the domestic market of dermatological-grade skin care products, and its market share increased by about 2 percentage points compared with 2020. Compared with 2020, Winona brand continues to expand its leading advantages over the second and third places. Its domestic market share is close to the sum of the second and third places, and the leading effect is significant.
That is to say, YoganDerma is involved in the sensitive skin track at this time, and will face the competitive pressure of veteran players such as Winona, La Roche-Posay and Avène. In this regard, the relevant brand principal of YoganDerma said, "Compared to some mature brands, we are mainly too new." In her opinion, it is difficult for a brand to debut being the climax of the career. The brand has to go through constant exploration and testing, as well as the verification of the market.
In recent years, Yuyuan Inc. has also significantly strengthened the layout of the cosmetics business. Although the overall proportion of cosmetics in Yuyuan Inc. is not high at present, revenue is increasing significantly. According to the 2021 annual report of Yuyuan Inc., the revenue of the company's cosmetics segment was USD72.22 million, a year-on-year increase of 13.05%.
In June 2020, Yuyuan Inc. incorporated Fosun Jinmei (Shanghai) Cosmetics Co., Ltd. (YoganDerma brand is owned by the company) and its beauty brands such as AHAVA and WEI into Yuyuan Beauty and Health Group through investment and acquisition. On January 19, 2021, Yuyuan Inc. also established the Fosun Jinmei Global Science and Technology Innovation Center to intervene in the field of scientific and technological innovation in cosmetics.
Although Yuyuan Inc.'s current performance in the cosmetics field is not outstanding, many industry insiders believe that with Fosun Group's resources and scientific research advantages in the medical field, the competitiveness of the YoganDerma brand cannot be ignored. The principal of a functional skin care brand under a listed company said that the product power of most of the cutting-edge brands can pass the test, mainly depends on whether they can find their own subdivided track and survive in the cold winter.
On the whole, for a new brand like YoganDerma, there is still a great opportunity for the "sensitive skin" track, but whether it can make good use of its own resource advantages and ultimately win with quality, industry insiders generally believe that this is the key to determining whether a brand can open up the market.
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