The shadow of the perfect diary under the light of domestic products

category:Finance
 The shadow of the perfect diary under the light of domestic products


In May this year, perfect diary was rumored to be an IPO. In July, it was reported that the company was considering the listing location. The official explanation is even more evocative. The rapid development of its capital, as a capital, is bound to boost the development of the brand.

Although perfect diary has achieved excellent results in the past four years in terms of online sales, the company has also proposed to become LOreal China. But now the perfect diary, no matter from the R & D investment, product line integrity, or product quality word-of-mouth, the gap between perfect diary and international brands such as LOreal is still not small.

For this kind of brand with strong Internet temperament, its popularity and performance are usually directly proportional to the results of its early marketing. Perfect diary can be said to spare no effort in laying publicity channels. For example, 270000 relevant notes can be found in the app little red book of weeding class which girls gather together. Through the cooperation and promotion with some beauty bloggers on the platform, the perfect diary with fair quality and affordable price ushered in its first wave of traffic.

This is just the beginning, the most able to reflect the perfect diary marketing skilful, is its co branded series. But unlike those brands that occasionally link names across different sectors, perfect diary almost makes co branding a normal operation.

Since the beginning of 2019, every three months, perfect diary will launch joint brand with major IP, and has cooperated with discovery channel, Metropolitan Museum and China National Geographic magazine. At the same time, the founders were well aware of the strong appeal of the head net red. More than 100 thousand of the stock was sold out on the day of the sale of the Eyeshadow on the theme of Li Jiaqi pet dog never.

The popularity of sales does not mean that the perfect diary is profitable. In June this year, it was reported by the media that the gross profit margin of the perfect diary industry was at the bottom of the list. The marketing expenses alone consumed 40% - 50% of the revenue. Perfect diary once proposed to be Chinas LOreal, but in fact, in the field of cosmetics, the gross profit margin of major international brands generally reached about 70%. According to the annual report of LOreal in 2019, its sales expenses account for only 20.3%.

The narrow profit space and high marketing expenses will inevitably affect the performance of perfect diary. According to 36 krypton, investors in the perfect diary said the perfect diary didnt make a profit in 2019. Since June last year, perfect diary began to lay out offline stores. At present, it has opened more than 100 stores in 47 cities across the country. However, it remains to be seen whether offline stores can improve the companys profitability.

Online lack of power, layoffs rumors

China.com reported a while ago that perfect diary has laid off more than 400 employees since the end of April this year and has laid off more than 400 people by the middle of May. In the know of the problems with the perfect diary company, Guangzhou Yat Sen Agel Ecommerce Ltd, you can see many Tucao make complaints about their former employees.

Others said: those who are still in the company and have worked for more than half a year are considered as old employees; there are more than 80 small partners on the day of entry, and now only less than five are left. Under such a heavy layoff, its hard for employees to avoid unemployment. A former employee said: recently, the company is cutting staff crazily. The staff mobility is very high. When they enter the company, they say good benefits will disappear.

In the construction of private traffic, the perfect diary xiaowanzi have made great contributions, and this mode has also won the praise of many netizens. But in fact, youzhihu has disclosed that the company has set extremely high KPI for xiaowanzi. Every day when you open your eyes and pick up your mobile phone, you have to stare at the news in the group even when you eat. If xiaowanzi fails to complete KPI, he can only get the basic salary, and there is no welfare. The five insurances and one fund are also paid according to the minimum standard (2100 yuan) in Guangzhou.

The above information may be able to show from the side that the current financial situation of perfect diary is not optimistic, even to the point of saving money by relying on HR blood transfusion and bloodletting, reducing welfare and improving KPI.

At the same time, the perfect diary, which has always been the leader in online sales, has also begun to fall into the plight of weak growth. According to the data released by Guojin securities, the first round of pre-sale promoted by 6.18 this year greatly increased the sales of cosmetics category. However, under such a hot background, the sales volume of perfect diary on tmall fell by 38% compared with last year.

However, the total sales volume of Gmv (RMB 0.05 billion) and that of Gmv (Gmv) were RMB 0.05 billion and RMB 0.02 billion, respectively.

Marketing is the main factor to support the sales performance of the perfect diary which pays more attention to marketing than R & D. As more and more players enter the market of affordable beauty brands, the limited marketing channels are increasingly crowded, and the marketing price naturally rises. If you want to make a living, you cant be complacent. It is the most important thing to have our own core technology and improve our R & D ability.

Research and development of lameness, only 8 appearance patents

At present, the perfect diary adopts the OEM / ODM production mode. What the company has mastered mainly includes marketing and sales channels as well as product design. However, the lack of R & D links makes the company lack the moat to resist the competition of other similar brands.

Any other company, as long as it has enough funds to seek cooperation with OEM manufacturers and lay its own marketing and sales channels, is enough to become the second perfect diary and take a share in the affordable beauty market.

The field that best reflects the weakness of perfect diary in R & D is its skin care product line. In the videos of several beauty up owners on station B, they all said that the audience was not recommended to buy skin care products with perfect diary. The reason is that the most influential factor in the use effect of skin care products is the patent ingredients contained in them. For the perfect diary which lacks research and development ability, it is impossible for them to sell things that cannot be produced by OEM factories.

Perfect diary once said that he was determined to be LOreal of China, but in fact, there is a difference between perfect diary and LOreal.

The R & D strength of the two companies is quite different. According to the data in the annual report of LOreal Group in 2019, LOreal invests as much as 985 million euro in R & D every year. There are nearly 4000 R & D personnel in 20 R & D centers around the world, with an average of nearly 500 patents applied for each year.

However, according to the information from the company, Guangzhou Yixian, the parent company of the perfect diary, currently has only eight design patents. But that doesnt mean the perfect diary is not enterprising in research and development. In March this year, perfect diary announced the plan to cooperate with cosmetz, the worlds largest cosmetics OEM company, to build a R & D and production base with an investment of 700 million yuan, which is expected to be put into production in 2022.

Although the construction plan of the R & D center has been put on the agenda, cosmetz, the partner of the project, is still an OEM enterprise. OEM products mean that the same product may come from different OEM factories. Different quality control standards will make the quality of finished products vary.

When B station UP is one fish chapter Ellen, she points out that perfect diary, small black diamond lipstick, plastic paste is too crisp, the cover of the concealer will fall off, and must be pressed to pull out. Bullet screen comments have been made by the audience. These small defects in the products reflect not only the negligence of quality control, but also the gap between the perfect diary and the international famous brands in product design level.

Source: investor.com editor in charge: Yang Qian_ NF4425