Author | Liu Ran
Title Map | IC photo
#This article belongs to the new column “Shiny IPO” launched by Huxiu. This column aims to focus on newly listed companies this season, dismantle their industry and investment value, and provide the public with a more comprehensive and accurate business interpretation, including articles, long pictures, short videos, live broadcasts and other forms.
The perfect diary, who is only three years old, has been on the stage of the New York Stock Exchange with the title of “the first stock of domestic beauty makeup”.
On the evening of November 19, Yixian E-commerce, the parent company of Perfect Diary, was successfully listed with the stock code “YSG” at an issue price of US$10.5. After that, the opening rose by nearly 70%, and the stock price closed at US$18.4 on the first day. As of press time, the market value of Yixian e-commerce has exceeded 13 billion US dollars.
From the establishment of the brand to the No. 1 cosmetics ranking on Tmall, and then to the listing, Perfect Diary has gone smoothly. Of course, there is the help of capital behind this. Since 2018, Yixian e-commerce has maintained the rhythm of financing at least once a year. This year, it has won two financings of 100 million US dollars in April and September. On the list of investors, there is no shortage of leading institutions such as True Fund, Hillhouse Capital, Gaorong Capital, and Hopu Investment.
We have always followed the brand willIn order to shift the domestic beauty market, why can Perfect Diary and other “net celebrity” beauty products stand out and become a phenomenon-level brand? This is not just relying on the labels of “domestic products” and capital, the bigger cause is considered to be the victory of the new marketing era. In a media interview on the night of listing, Huang Jinfeng, founder and CEO of Yatsun E-commerce, did not deny this initial impression, but he also said that from the perspective of Yatsen’s e-commerce model, after the initial investment, in a certain period of time in the future There must be a payback period.
So how exactly should we define the perfect diary? What kind of challenges does Yixian e-commerce face after listing? How far can the dividends of the new traffic era help it go? These issues are still worth studying.
Yixian e-commerce has come to today, and this “diary” has actually only been written to the first few pages.
1. Does cost-effective beauty make money?
In less than two years, the valuation of Perfect Diary rose from US$1 billion to US$4 billion, and its value soared four times. It was not until the IPO was written that the dark horse in the beauty industry finally revealed the mystery: revenue increased from 640 million yuan in 2018 to 3.03 billion yuan in 2019, a year-on-year increase of 377.1%; the first three quarters of 2020 Net income was 3.27 billion yuan, a year-on-year increase of 73.2%.
There is no need to repeat the story of the rise of Perfect Diary. Under the conditions of mature Internet infrastructure, social and short video platforms have brought new traffic dividends, and platforms such as Xiaohongshu, Douyin, Station B and Tmall have become The promised land of the perfect diary.
According to the prospectus, Yixian e-commerce is the first beauty brand to use online KOLs on a large scale. As of September 30, 2020, there are nearly 15,000 KOLs cooperating with Yixian e-commerce, of which more than 800 KOLs with more than 1 million fans.
So far, Yixian e-commerce products often appear in the video and live broadcast rooms of various KOLs. Even if you have never used its products, under the education of various forms of advertising on these platforms, you may They also called out the names of popular products such as animal eyeshadow palette, feather satin pressed powder, little Oting eyeliner, cat and mouse joint blush.
Perfect Diary