Chinese Beauty Agency Lalami Heads for A-share IPO
- Chaileedo Press
- Jun 22, 2022
- 3 min read
In just one year, Lalami, the Chinese beauty agency operator that ranks first in sales on Tmall International, officially launched its IPO. This means that China's listed cosmetics management companies are expected to be enlarged.
Recently, according to the information disclosed on the China Securities Regulatory Commission's online service platform, Guangzhou Lalami Information Technology Co.(hereinafter referred to as "Lalami"), Ltd.'s "Approval for the Company's Initial Public Offering of Shares (A Shares on the Main Board of the Shanghai Stock Exchange and the Main Board of the Shenzhen Stock Exchange, B Shares)" has entered the stage of receiving materials. Once the materials are passed, the Chinese beauty cross-border agent operator can submit the materials to impact the A-share IPO.
According to the official website information, Lalami was established in August 2012 with a registered capital of more than 7.445 million US dollars. At present, Lalami is mainly engaged in international beauty, skin care, and maternal and child care products. It introduces cross-border brands through an exclusive agency or trademark acquisition, building brand image while conducting online and offline omni-channel sales management via professional teams.
According to the observation from Qeyes, the store brands operated by Lalami on Tmall International and JD Worldwide include Avène, BYPHASSE, Naris, French dermatology brand Evoluderm, Korean brand I'M CMIC, and many other beauty brands.
Among them, in the Tmall International NARIS overseas flagship store operated by Lalami, "Essence in UV Cut Spray"(SPA++++, SPF 50) is the single product with the highest monthly sales in the store, with a monthly sales of 600,000+ and a price of $13 -$17.
It is understood that in 2014, Lalami's operating income was $3.4572 million and net profit was $95,900; from January to June 2015, Lalami's revenue was $10.4479 million and net profit was $499,700. The data for the six months of 2015 was an increase of more than 202% compared to the full year of 2014. In just over a year, Lalami's "Global Shopping Overseas Franchise Store" has ranked No. 1 in sales on Tmall International.
Also in 2015, Lalami received investment from several listed companies. According to public reports, in August 2015, Lalami introduced a round of financing of $7.445 million. The investors in this round of financing were listed companies SouYute Group and Shengkun Juteng, with investment amounts of $6.7005 million and $744,500 respectively. In September of the same year, Lalami also received $10.423 million in Series B financing from A-share listed company jewelry brand CHJ Jewellery. According to the 2021 annual audit report released by CHJ Jewellery, the current shareholding ratio of it in Lalami is 15.96%.
With the continuous changes in the gameplay of China's e-commerce industry, the listing is only the first step for operators to enter a new stage of the competition. Whether the exploration of new business models can be completed in the future is a difficult problem that needs to be solved urgently. On the whole, the revenue growth rate of Internet e-commerce platforms shows signs of slowing down in the environment of intensified competition and sluggish consumption. The entire Chinese e-commerce agency operation industry has entered a critical period of transformation, where they are all urgent to find new growth points.
Some industry insiders pointed out that with the tightening of China's e-commerce platform traffic, the proportion of brand sales through online channels is getting higher and higher. While large international beauty groups are gradually planning to operate their own e-commerce business, the profits of the beauty e-commerce agency operation industry are no longer as prosperous as they used to be.
Lalami is taking the route of niche brands in terms of cross-border e-commerce, so it can be distinguished from other operators. However, being niche means that it is not well known to the public, and consumers do not have so much trust in it. In addition, internationally renowned beauty brands have already occupied most of the market share. If niche brands want to break through, they can only start from R&D, production, and organizational capacity upgrades. When you have a good product, word of mouth will follow as well.
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