“Perfume is a seriously underestimated track.”
It was learned that recently, the perfume and fragrance company “Yu Fan” received tens of millions of strategic financing from Europe Travel Group ,Qingsen Capital acts as the exclusive financial advisor. This round of financing will be used to sort out brand positioning, increase marketing investment, integrate talents, and optimize company management. In August 2019, Yufan received an angel round financing of millions of yuan from Fengwu Capital.
The predecessor of Yufan is a perfume and fragrance daily chemical company with a supply chain history of nearly 40 years. The new company will officially operate in 2019. The founder Cao Huixing told that China’s perfume fragrance market has a scale of 200 billion yuan, and the sales volume of offline channels has increased by more than 25% for three consecutive years. The perfume supply chain is relatively special and requires professionalism. Due to safety considerations such as explosion protection, factories have certain thresholds to apply for qualifications. The government has tightened factory qualification approvals in recent years. Therefore, Yufan’s supply chain and R&D capabilities are themselves core barriers.
Yu Fan “Balio” product map
With this barrier, Yufan has carried out both To B and To C businesses at the same time. The supply chain started production last year. As of press time, the company’s To B business sales in 2020 are about 160 million yuan, and To C business sales The amount is about 50 million yuan.
Yu Fan’s To B business is based on OEM, ODM and OBM foundry models for companies that require perfume or olfactory products. About 50% of its business is connected overseas , Has served Anna Sui, Disney, Emirates and other brands. Utilizing digital technology and intelligent warehousing, Yufan introduced automatic guided transport vehicles and track-guided vehicles to improve the safety and efficiency of internal transportation in the factory. At present, the workshop has realized unmanned production in some production lines. The Yufan factory covers an area of about 24,000 square meters, has 24 automated production lines, and has a production capacity of nearly 2 billion yuan throughout the year.
Cao Huixing told that if the same amount of productionThe integrated production line requires a factory of 60,000 to 80,000 square meters. Yufan uses digitalization to gather production capacity and set up a three-dimensional warehouse, which can reduce costs by more than 20% and increase land utilization by 5 times. The rapid response capability of the supply chain is also a core advantage of Yufan after the production capacity is gathered, which has competitive barriers for its brand to build explosive models.
Yu Fan’s To C business mainly faces young college students and new white-collar users. It already owns the perfume brand “Ballio”. Based on a complete supply chain, Yufan reorganized the relationship between brand positioning and consumers, combined the existing “lambskin” product line with the concept of portable salon fragrance, targeting non-heavy users of perfumes and encouraging users to Perfume becomes a part of itself, creating new usage scenarios. After about one and a half years, the penetration of Yufan into the mass market will be basically completed, and the brand tonality will be further enhanced, eliminating the niche users who already have fragrance usage habits.
Next, the team will use the existing R&D and market data to connect with the data center of Europe Travel Group, gain insight into consumer needs, create explosive products, and further expand the product line with fragrance as the core. 10ml and 30ml small bottles are mainly available, and SKUs such as balm and hand cream are expanded. In terms of channels and marketing, Yufan will focus on the tonality of products and brands, using trend and entertainment resources to plant KOL, and the products will be sold in all channels.
Yu Fan “Balio” product map
As for the team, the founder and CEO Cao Huixing has 15 years of experience in the perfume industry, upstream and downstream resources of the fragrance industry chain and offline channel resources, as well as brand planning, new category expansion, OEM and ODM management experience. Co-founder Zhang Aidong has more than 10 years of experience in corporate management and public relations management. He is mainly responsible for the daily management of Yufan and the coordination of corporate and government relations. Another co-founder, Zhang Wei, has 8 years of experience in the fragrance industry. He has worked for Konka Group, Ping An Shanghai Headquarters, Fosun Group, etc.
Su Cheng, the founder of Ouyou Group, the investor, said that Ouyou Group mainly judges whether a project is feasible from the four dimensions of product, brand, channel and capital. Yufan’s team of perfumers, the stability and texture of the perfume Taking the lead in the market, Ouyou Group will provide Yufan in brand management, traffic empowerment, team building, and entertainment.The introduction of the book and beauty industry partners provides strategic empowerment to create a perfume fragrance production chain.
Su Cheng believes that the penetration rate in the fragrance industry is a major pain point. In the general environment of China, the category is not yet mature, and there are few big names in China. Perfume is a seriously underestimated track , Foreign and domestic are seriously disproportionate, and new opportunities will appear within 3 years.