Perfect Diary Cooperates with Chinese Well-known E-commerce Platform
- Chaileedo Press
- Jul 5, 2022
- 3 min read
Abstract: The first flagship store of The J Shop of JD, a collaboration between Perfect Diary and Jingdong, will land in Chengdu, Sichuan, China. As of 2020, Perfect Diary's market share in the Chinese beauty market reached 6.7%, making it the second largest single brand of color cosmetics after Maybelline.
According to CHAILEEDO's observation, since the completion of the online channel launch in May this year, The J Shop of JD has completed the pilot operation of innovative cooperative stores in five places, including Xi'an, Shenzhen, Chengdu, Yinchuan and Beijing, since May 20. The vice president of Perfect Diary's parent company, YSG, said that based on The J Shop of JD's deep experience and strong technical support in the online retail field, it is believed that both parties will provide customers with more high-tech and intelligent convenient services, personalized shopping experience and jointly create an immersive shopping space.
It is understood that the store is built by the in-depth cooperation between JD and Perfect Diary and the two sides have complemented each other in various aspects such as product layout and operation services of the store. The store in Chunxi Road has also received a new upgrade of scenes and experiences. Relying on JD's digital supply chain and omnichannel advantages, The J Shop of JD will provide one-stop solutions and region-specific customized services such as efficient speed of selected products, online and offline integration experience, multiple interactive games, and full-link services to fully meet the new fashion life consumption needs of young consumer groups. Perfect Diary also brings a new color cosmetics series.
It is reported that Perfect Diary is the main brand of YSG. Founded in 2017, as the main brand of YSG, Perfect Diary has been on a roll since its birth. During the Chinese Double 11 Shopping Festival in 2018, Perfect Diary, which was established just one year ago in 2017, became the first makeup brand with sales revenue of more than 100 million on Tmall. During the Double Eleven Shopping Festival in 2019, Perfect Diary became the first domestic brand to top the makeup list on Tmall. At 15:14 on November 1, 2020, the payment amount of Perfect Diary's flagship store exceeded $47.08 million, becoming the first makeup brand on Tmall to break $47.08 million with the sales volume topping in the beauty category. During the Double Eleven Shopping Festival in 2021, Perfect Diary's cumulative sales exceeded $94.16 million, ranking first in the makeup categories on Tmall.
As of 2020, Perfect Diary's market share in the Chinese beauty market reached 6.7%, becoming the second-largest makeup single brand after Maybelline, while the overall market share of Perfect Diary's parent company, YSG, reached 8.3% in the same period, ranking fourth in market share, making it the only local enterprise in the top five of the beauty group.
During the Double 11 Shopping Festival in 2021 on Tmall, Perfect Diary won the top one place in domestic brands in the makeup categories on Tmall with the omnichannel sales volume of the star products of the "NEW! 207 PERFECT DIARY README LIQUID LIPSTICK EVER-STAY PD029" achieving 974,000 pieces and the "SLIM LIPSTICK" 1.074 million pieces respectively.
But the 2021 financial report issued by its parent company, YSG, is not optimistic. All along, YSG has been criticized for emphasizing marketing over its R&D. In the prospectus, YSG mentioned that from 2018 to 2021, its marketing expenses were $46.1 million, $186.6 million, and $509 million and $597.7 million. The proportion of annual revenue accounted for by marketing expenses rose from 48.2% to 68.6%.
The research and development expenses of YSG, from 2018 to 2021, were RMB 2.6410 million $394 thousand, $3.46 million, $9.92 million, and $21.2 million, respectively. Thus, although the difference between the R&D expenses and the marketing expenses of YSG is large, it can be seen that the group has also been making efforts in R&D in the past two years. In comparison, according to the Ping An Securities report, L'Oreal's R&D expenses in 2020 were nearly $179 million, the number of global R&D staff was as high as about 4,000, and the number of global patents in the past five years was as high as 1,368.
YSG has also said that the group's success in the first 5 years was due to the traffic dividend, while the next 5 years have to be driven by product power and productiveness. In fact, since the establishment of Perfect Diary in 2016, it has been to create a "healthy beauty explorer in the new technology era" as the vision and committed to becoming the leader of China's beauty. This joint venture with The J Shop of JD will bring the brand one step closer to the dream of accompanying users to become more beautiful.
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