Nearly 1 Billion Yuan of Annual Sales! UNIFON Can Sell 100,000 Masks in a Minute
- Chaileedo Press
- Apr 29, 2022
- 4 min read
On April 27, the Chinese cosmetics company S'YOUNG released its 2021 annual financial report with its net profit increasing by nearly 70% year-on-year. S'YOUNG's core brand UNIFON also achieved more eye-catching results in 2021. Founded in 2006, UNIFON is positioned as a national skincare brand that inherits the culture from the flourishing period of the Tang Dynasty. In 2016, the revenue of UNIFON was close to 1 billion yuan (approximately $151 million). And during the Double Eleven shopping festival in 2020, UNIFON's best-selling products achieved a proud result of selling 100,000 bottles in 1 minute and 17 seconds.
In 2021, S’YOUNG achieved sales revenue of $758 million, an increase of 34.86% year-on-year, with a $35.7 million of net profit attributable to shareholders of listed companies, an increase of 68.54% year-on-year.
S’YOUNG said that the main reason for the growth of revenue, net profit and net profit attributable to shareholders of listed companies in 2021 is the continuous growth of its brand and the rapid growth of its agency business. At the same time, the product structure improvement has improved the gross profit with an increasing level of profitability and a positive operating situation.
It is understood that UNIFON is the core brand of S’YOUNG.
S’YOUNG said in the annual report that in 2021, UNIFON is committed to promoting the precipitation of brand equity, the creation of production systems, and the expansion of Omni-channels.
In terms of brand, UNIFON deepened the transmission of the culture from the flourishing period of the Tang Dynasty, focusing on combing the brand management system, continuously strengthening brand awareness, and systematically enhancing brand perception.
In terms of products, in collaboration with the academician Chen Jian of the engineering academy, they broke through the technical barriers of hyaluronic acid, created the industry's smallest molecular weight of 800 Da hyaluronic acid, and launched a micro-800 hyaluronic acid repair secondary ejection essence. UNIFON continued to promote the intensity of scientific and technological innovation and the research and development of products.
In terms of channels, the omnichannel operation ability of UNIFON has been further improved. It has set up a channel benchmark on TikTok to create the top 1 beauty activity on the platform. It has deeply cooperated with Xinxuan on Kwai to create the top 3 domestic beauty products on the platform. In VIPs, it has topped the annual ranking of mask brands and also won the Excellence National Tide Mask Gold Award on the top List on JD.com. At the same time, under the influence of the epidemic, offline channels still doubled, and the sales of masks ranked in the top two in the share of Watsons domestic products.
Founded in 2006, UNIFON is positioned as a national skincare brand that inherits the culture of the flourishing period of the Tang Dynasty.
In 2007, UNIFON was mainly based on online channels, relying on Taobao, with e-commerce traffic dividends, online sales continued to soar, and even once contributed more than 90% of UNIFON's sales, becoming a popular star brand on Taobao.
On the day of the Double Eleven shopping festival in 2016, the sales of UNIFON exceeded 100 million yuan (over $15.13 million) and won the championship among mask categories. The number of followers on Wetao exceeded 3 million, ranking first in the skincare category in the country. According to the listing prospectus of S’YOUNG, the sales revenue of UNIFON reached 958 million yuan (approximately $145 million) in 2016, accounting for more than 80% of the main revenue.
However, with the weakness of online traffic, and e-commerce channels for several cosmetics, especially mask brands, the dividend period is no longer obvious and products have entered the era of low profits.
According to the data disclosed by Taobao and Tmall and Everbright Securities Research Institute, the sales volume of the flagship store of UNIFON on Tmall began to decline to various degrees from negative 18.21% to negative 60.13% from December 2018 to June 2019.
Since then, UNIFON has made adjustments in a variety of ways by striving to create hot products and increasing marketing expenses. It created a joint model with the internet popular milk tea brand "cha yan yue se" and carried out brand upgrading and transformation. From some data in recent years, it has made small achievements.
During the 2020 Double Eleven shopping festival, the Amino Acid Mask was sold 100,000 bottles in 1 minute and 17 seconds with the cumulative sales revenue of this single product exceeding 7 million bottles throughout the year, becoming a genuinee "mask sales champion". UNIFON has once again become the first brand in the annual mask sales on Tmall.
In 2021, UNIFON won the "Golden Makeup Award on Tmall", and its single amino acid essence mask stood out from many brand masks and won the "2021 Mask of the Year Award".
In October 2021, the live streaming influencer Dandan on Kwai released a new product of UNIFON in live streaming: FIRMING GINSENG SNAIL SLEEPING MASK. Due to its high-end quality and many advantages such as giveaways, the product sold out 53,000 singles after going public, with a single sale's revenue of more than 20 million yuan (about $3.03 million).
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