(April 26, 2024) According to the 2023 financial report recently disclosed by Fuerjia, in the 2023 fiscal year, Fuerjia's operating income was 1.934 billion yuan, a year-on-year increase of 9.29%, and the net profit attributable to the parent company was 749 million yuan, a year-on-year decrease of 11.56%.
According to the financial report, in fiscal year 2023, the continuous growth of online direct sales revenue has driven the company's overall revenue growth, while the continuous increase in investment in channel construction, northern beauty valley construction, research and development and other aspects is the main reason for the decline in net profit. Throughout 2023, Fuerjia will make efforts in scientific research, products and channels, and steadily adjust its layout according to market demand, showing the tenacity of continuous growth.
Bravely enter the raw material track, and the "machine brand" license accumulates stamina
In the past two years, the biggest change in the demand side of the beauty and skin care industry is the rise of the ingredient party, and a new generation of consumers has entered the era of precision skin care. The so-called precision skin care means that consumers are more aware of their facial problems, and the requirements for the efficacy of skin care products are becoming more and more stringent. This undoubtedly poses a severe challenge to the scientific research level of the enterprise.
Fuerjia, who was born in a pharmaceutical company and has a deep accumulation of scientific research and technology, is not satisfied with its existing advantages, but will increase investment in scientific research in 2023 and build high barriers to scientific research. According to the financial report, in 2023, Fuerjia will increase the construction of the R&D team, with a total investment of 32.8388 million yuan in scientific research, a year-on-year increase of 112.88%. In the average R&D expense rate of 1.5%~3.5% of international brands, it is full of sincerity.
In 2023, Fuerjia has strengthened its advantages in the field of medical device dressings, and is currently actively deploying the R&D and production of three types of devices with the highest degree of risk and the most stringent supervision. At the same time, in order to consolidate the competitive barriers of its own raw materials, Fuerjia forward-looking extends its R&D tentacles to the upstream raw material track. At the end of last year, the new raw material β-nicotinamide mononucleotide (INCI name: Nicotinamide Mononucleotide) produced by the brand has also completed the filing of new raw materials with the State Food and Drug Administration, which is the first new cosmetic raw material to complete the filing, and Fuerjia has also become one of the only few skin care brands in China with raw material filing.
In terms of overall strategy, Fuerjia continues to adopt the R&D model of "self-research and self-development + internal and external collaboration", and while continuously enriching its own R&D team, it continues to integrate external resources and establishes a sound, complete and standardized R&D system. Internally, relying on the pharmaceutical background of Huaxin Pharmaceutical, Fuerjia has gained a firm foothold in the market by virtue of its R&D strength of medical dressings and functional skin care products; externally, Fuerjia has cooperated with Northeast Forestry University, Harbin Institute of Technology (Shenzhen), Jiangnan University, Sichuan University, Kunming Institute of Botany, Chinese Academy of Sciences and other universities and research institutes to carry out diversified cooperation to create and share scientific research results, providing a steady stream of power for the brand's scientific research and innovation development.
Strengthen the awareness of the mask category, and break through the functional skin care track with the posture of a dark horse
According to the financial report data, the sales volume of medical dressing products in 2023 will be 850 million yuan, a slight decrease of 1.79% from the same period last year, and the sales proportion of functional skin care products will continue to expand, from 51.05% in 2022 to 56.02% in 2023, with sales of 1.083 billion yuan. This year, Fuerjia produced 5 single products with sales of more than 100 million yuan, including: Medical Sodium Hyaluronate Repair Patch (White Film), Fuerjia Acne Cleansing Repair Patch, Medical Sodium Hyaluronate Repair Patch (Black Film), Fuerjia Centella Asiatica Soothing Repair Patch and Fuerjia Niacinamide Whitening and Spot Repair Mask.
In the field of functional skin care, the product line also covers acne, whitening, anti-aging, sensitive skin repair and other categories that consumers just need and consume frequently, and has launched water, essence, lotion, spray, freeze-dried powder and other forms of products. Among them, Fuerjia Niacinamide Whitening and Spot Repair Mask and Fuerjia Niacinamide Whitening and Spot Repair Essence have obtained the special cosmetics registration certificate of the State Food and Drug Administration, and experts have taken action to ensure the safety of consumers and meet the efficacy needs of consumers.
Revitalize the growth of channels, and build a new sales pattern through marketing
In terms of channels, Fuerjia adopts the online and offline "two-wheel drive" marketing strategy, opening up multiple forms such as distribution, direct sales and consignment sales, and widely reaching consumers across the whole region.
Offline, at the beginning of its establishment, Fuerjia quickly opened up the marketing network and distribution channels through dealers, and formed a close community of interests under years of tacit cooperation, and encrypted the layout of all parts of the country in 2023. Online, Fuerjia has a comprehensive layout of traditional channels on platforms such as Tmall, JD.com, Pinduoduo, and Koala Overseas Shopping, and at the same time actively seizes new traffic depressions such as Douyin, Xiaohongshu, and Kuaishou, expands interest in e-commerce, and tries live broadcasts, grass planting and other tricks to bring goods.
However, in the face of increasingly fierce channel competition and possible price war traps, Fuerjia adheres to the brand values of positive, altruistic and long-termism, and is committed to creating a value experience for consumers that goes beyond the product itself. On Women's Day, the well-known host Li Xiaomeng delivered a female-friendly annual speech "Hello Us", and joined hands with the powerful actor Ren Suxi to shoot a short film on the attitude of "Auntie", conveying the brand temperature from a delicate perspective and issuing a female declaration of "being yourself, you will shine";
Linked with the Harbin Ice and Snow Season, spoke for his hometown, actively undertook corporate social responsibility and mission, and took advantage of the hot stalks on the Internet, not only launched hot topic discussions online, such as #What is the relationship between Erbin and Erjia#, and created copywriting such as "I am Erbin's sister Erjia", but also implemented this marketing campaign by distributing 50,000+ masks for free in the Ice and Snow World Warm House;
The data gave positive feedback to Shierjia. According to the financial report, in 2023, Fuerjia's online channel revenue will further increase, accounting for 40.62% in 2022 to 47.77% in 2023, and the channel layout will be further optimized.