Perfect Diary

 

“Unlimited Beauty”

Founded: 2017 in Guangzhou, China

Category: E-Commerce, Cosmetics

Primary office: Guangzhou, China

Core technical team: Guangzhou, China

Status: Private

Employees: 3,000+

Amount raised: $100 million  (2 rounds – March  2020)

OVERVIEW

  • An e-commerce-based cosmetic brand that is committed to exploring the trends in international cosmetics and the frontiers of fashion to provide high-quality and precise-designed cosmetics products for young Asian women
  • Enhances branding by launching co-branded cosmetic products with Key Opinion Leaders (KOLs), idols and famous organizations such as the British Museum
  • Supports the Chinese fashion industry, determined to create an internationally influential Chinese Beauty Icon

 

PERFORMANCE METRICS

  • Valuation: $1 billion
  • Estimated annual revenue: $423 million (2019)
  • Number of fans: 13.77 million on Taobao; 1.68 million on Xiaohongshu; 3.22 million on Kuaishou, 1.34 million on Douyin

 

ACHIEVEMENTS

  • Entered the “Super Brand Day” of Kuaishou: attracted 10 million participants and achieved 16+ million sales in a single live event (2020)
  • Became the only unicorn company in the domestic beauty industry (2019)
  • Achieved gross merchandise volume $46 million in a single month through online live promotion (June 2019)
  • Ranked first in the transaction value in Double Eleven Festival among all makeup brands (2019)
  • Ranked the No.1 color cosmetics brand and Top 3 beauty brand on T-mall (2019)
  • Ranked Top 3 most popular brands among Chinese Gen-Z consumers
  • Awards: 2019 ELLE Beauty Star Awards, The Fifth China Cosmetics Innovation Conference – Black swan, 2018 COSMO Beauty Award, 2018 Harper’s Bazaar beauty awards
  • 70% of Perfect Diary consumers are Gen Z Chinese females

Sells

  • Make up – a complete spectrum of makeup products applied to face, eye, lip and cheek
  • Skin care – moisturizers, cleansers, masks
  • Beauty tools – makeup brushes and applicators, accessories
  • Gift pack – exquisite bundles of products
  • Fragrance – the floating light series perfume “daydream” created with internationally renowned director い わ い し ゅ ん じ (Shunji Iwai)

Channels

  • Uses popular online platforms such as Taobao, Tmall, Xiaohongshu, Douyin, JD and WeChat store
  • Hosts three Pop-up stores in Shanghai, and owns 40 offline stores in China
  • Actively participate in online shopping festivals (e.g., Double 11, JD’s 618 Festival)
  • Intense engagement with social media (e.g., Xiaohongshu, Bilibili, Douyin, Kuaishou)
  • Effective advertising and KOL strategy: hire celebrity and internet celebrity endorsements, targeting different customer segments precisely
  • Private traffic marketing:
    • Create a virtual KOC (Key Opinion Consumer presented as a cartoon character [3]), personal WeChat accounts with identical profiles operated by employees to help with sales service, providing beauty advice and free samples and coupons
    • Each KOC runs hundreds of WeChat groups with brand customers and manage high quality content, attracting followers through private traffic on social media
  • Develop cheap alternatives to famous international brands
  • Provide immersive marketing experience in offline stores

Competencies

  • Leverages KOL strategy and creates brand recognition on social media platforms in order to stimulate purchases
  • Direct communication bridges with customers/end users through public and private traffic
  • Create high-end luxury image through unique co-branded joint products

Resources

Assets

  • Excellent and talented founding team
  • Partnership with major online shopping platforms and social media
  • Co-branding collaboration with popular organizations such as the Discovery Channel, the British Museum and the New York Metropolitan Museum of Art [16] [17]
  • Influential celebrity, online KOLs, brand owned KOC
  • 20 million fans across the web

Processes

  • In-depth research on the demand, public opinion and other competing products in the market and the data from its own consumers
  • D2C (direct-to-consumer) business model via WeChat, bypassing online sales platforms and broadening sales channels
  • Partners with leading beauty companies like Intercos and Cosmax (OEM, ODM factory) to develop full lines of cosmetics products with over 700 SKUs (Stock Keeping Units)

Priorities

  • Omni channel access to customers
  • New retailing driven by big data
  • Digital selection of product design choices
  • Management of private traffic
  • Use web traffic on other platforms and online sale promotion
  • Open 600 offline stores within 3 years

Assertions That Best Describe What the Company Did to Scale Early, Rapidly & Securely

  1. Apply big data analytics to produce insightful information about users, suppliers and customers to enhance shopping pattern analysis, improve customers experience, predict market trends, provide more secure online payment solutions, increase personalization, optimize and automate pricing, and provide dynamic customer service
  2. Use platforms and software that can cost effectively enable your company to scale early and rapidly without losing control of your operations, marketing, and development programs
  3. Apply ecommerce to provide customers with buying options that are quick, convenient, and user-friendly
  4. Integrate sales via website and social media platforms with company’s sales strategy; provide information on company’s products and services via social media platforms; drive audience and prospects to a company’s online presence (e.g., social media platforms, website pages, blogs, forums, etc.); enable communication and motivate audience engagement (e.g., use infographics and photos to capture and sustain interest on social media and encourage online audience to seek more information; make social media a primary or complementary sales channel; co-create value on social media platforms (e.g., engage customers and encourage them to offer their feedback and ideas regarding their experience with the product/service); and provide real-time pricing and services
  5. Use cultural tools and identity claims such as images, symbols, and language to strengthen company’s image
  6. Attract traffic and new customers by targeting and retargeting users from search engines, referrals, adds and social media
  7. Brand the company and build the brand into one that has a strong market presence
  8. Build a community around company brand, products and services, assemble community feedback and adapt
  9. Constantly monitor customers buying habits and deliver offers that are convenient, cater to customer demands, are secure and offer excellent customer experience
  10. Make each channel a seamless brand extension to enable the customer to pick up the conversation on any channel in seamless and unified experiences

References

  1. 36kr.com. (n.d.). 通过数据挖掘,我们研究了完美日记的两大增长策略_详细解读_最新资讯_热点事件_36氪. [online] Available at: https://36kr.com/p/1724247719937 [Accessed 25 May 2020].
  2. Anon, (n.d.). 《2020完美日记品牌分析报告》详解完美日记增长模式:直播、私域、爆品全都有!(完整报告67页) | 互联网数据资讯网-199IT | 中文互联网数据研究资讯中心-199IT. [online] Available at: http://www.199it.com/archives/1039781.html [Accessed 25 May 2020a].
  3. Anon, (n.d.). 完美日记成功的原因,虚拟影响者小完子功不可没!-茂石虎博客. [online] Available at: http://www.maoshihu.com/1700.html [Accessed 12 Jun. 2020b].
  4. baike.baidu.com. (n.d.). 百度百科——全球最大中文百科全书. [online] Available at: https://baike.baidu.com/item/%E5%AE%8C%E7%BE%8E%E6%97%A5%E8%AE%B0/22119286 [Accessed 25 May 2020].
  5. Crunchbase (2015). Crunchbase. [online] Available at: https://www.crunchbase.com/organization/perfect-diary [Accessed 25 May 2020].
  6. Jing Daily. (2019). What is a KOC? Behind China’s Latest Influencer Trend. [online] Available at: https://jingdaily.com/what-is-a-koc-behind-chinas-latest-influencer-trend/ [Accessed 9 Jun. 2020].
  7. Jing Daily. (2020). D2C Brand Perfect Diary is Disrupting China’s Beauty Market | Jing Daily. [online] Available at: https://jingdaily.com/d2c-brand-perfect-diary-is-disrupting-chinas-beauty-market/.
  8. Jing Travel. (2019). The New Product NYC’s Met Museum Designed for China’s Consumers. [online] Available at: https://jingtravel.com/the-new-product-nycs-met-museum-china/ [Accessed 9 Jun. 2020].
  9. PerfectDiary Beauty. (n.d.). PerfectDiary Beauty. [online] Available at: https://www.perfectdiary.com/ [Accessed 25 May 2020].
  10. Runwise (2020). 案例分析:爆款品牌完美日记的KOL投放策略 (上). [online] Available at: https://runwise.co/growth-strategy/23431.html [Accessed 26 May 2020].
  11. TechNode. (2019). Perfect Diary plans to open 600 offline stores over next 3 years · TechNode. [online] Available at: https://technode.com/2019/12/27/cosmetics-upstart-perfect-diary-offline/ [Accessed 9 Jun. 2020].
  12. www.cbndata.com. (n.d.). 全面解读完美日记:从组织架构到增长策略 | CBNData. [online] Available at: https://www.cbndata.com/information/40929 [Accessed 25 May 2020].
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  14. Zhao, H. (n.d.). June 2019 Cosmetics E-commerce Data Tracking Report. [online] GREAT WALL SECURITIES. Available at: http://pg.jrj.com.cn/acc/Res/CN_RES/INDUS/2019/7/16/add34fc7-c6ae-4307-b188-b5026cc3719c.pdf.
  15. 希言 (n.d.). 铅笔道. [online] www.pencilnews.cn. Available at: https://www.pencilnews.cn/p/33423.html [Accessed 12 Jun. 2020].
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Contributors

  • Nan Yang