Produced by | Bullet Finance
Author | Reading the night
Edit | lightning
American Editor | Li Yufei
Audit | Ode
As domestic beauty listed companies have successively announced their 2023 report cards, the domestic beauty market pattern has ushered in new changes - the industry's TOP1 has changed hands for the first time, and Proya Cosmetics Co., Ltd. (hereinafter referred to as Proya) has reached the top with a revenue of 8.905 billion yuan.
In the past two years, Proya ranked 5th and 2nd among listed domestic beauty companies with 4.633 billion yuan and 6.385 billion yuan respectively. In terms of revenue growth, it will more than double its growth in 2023 compared with 2021. With such breakthrough growth and faulty leadership, Proya broke through the ceiling of domestic beauty products and set a new record - the revenue of listed domestic beauty companies exceeded 8 billion yuan for the first time.
This is not an easy achievement, especially against the backdrop of a general downturn in the global beauty market. What is the reason for Proya's success?
1 new "top of the list",
Multiple all-time highs
In the past decade, the domestic beauty market has been very lively and growing rapidly. There are representatives of continuous reform and transformation such as Shanghai Jahwa, the new force of Perfect Diary's parent company, Yatsen E-commerce, which is at its peak, Bethany, which was supported by Winona's overnight popularity, and Proya, which can maintain sustained long-term growth momentum and profit growth.
"Jiemian News Bullet Finance" found that since its listing on the A-share market in 2017, Proya has achieved stable growth in revenue and net profit. Especially in 2023, Proya's revenue and net profit will exceed 8 billion yuan and 1 billion yuan respectively, hitting a record high. In addition, the year-on-year growth rate of Proya's revenue and net profit in 2023 will also be the highest in recent years.
Proya is unbeatable in the domestic beauty track. In this regard, Proya said that the continuous growth of its performance in 2023 is mainly due to the guidance and implementation of its firm 6N strategy (i.e., new consumption, new marketing, new organization, new mechanism, new technology, and new intelligent manufacturing).
At the same time, based on R&D strength and relying on the ability to respond quickly to internal organizations, Proya continues to improve the company's large-scale single product product strength and continue to build and optimize the core large-scale single product matrix. At present, it has formed a multi-brand matrix with the popular exquisite skin care brands Proya and Yue Fuyuan, the makeup brand Caitang, and the washing and care brand Off&Relax.
(PHOTO / CAITANG TIMAGE OFFICIAL MICRO)
Among them, the main brand Proya is still the main force supporting the company's revenue and profits. According to the financial report, in 2023, Proya's brand revenue will increase from 5.3 billion yuan in 2022 to 7.177 billion yuan, a year-on-year increase of 36.36%, making it the first domestic beauty brand with a revenue scale of more than 7 billion yuan.
In addition, after years of development, the proportion of its revenue in the company's total revenue has also increased from 5.53% in 2021 to 11.26% in 2023, becoming Proya's second growth curve.
2. Large single products carry the flag, and the second growth curve is gaining momentum
In the consumption track, there are many companies that have succeeded by relying on the strategy of large single products, such as the Oriental Leaves of Nongfu Spring.
After 13 years of cultivation, Oriental Leaf's performance ushered in explosive growth in the eighth year of listing. Although Oriental Leaves is not listed separately in Nongfu Spring's financial report, according to Nielsen data, its annual growth rate in 2023 will exceed 100%, and the compound growth rate in the past three years will exceed 90%, and it is expected to become another large single product of Nongfu Spring exceeding 20 billion yuan in 2026.
It is also a large-scale product strategy, unlike the tea industry, skin care products have their own uniqueness, and need stable efficacy, formulation, and reputation to finally establish a brand moat. This is also destined to make it difficult to implement the large-scale single product strategy of the cosmetics track, and once successful, its effect will be very obvious.
Proya's large-scale product strategy began in 2020, mainly focusing on the "essence" category. At that time, a market research said that from the supply side, the optional products of water and milk on the market were already relatively rich; From the demand side, some consumers are experiencing consumption upgrades and have higher requirements for the type and efficacy of skin care products.
At that time, Proya reached cooperation agreements with Lipoture and BASF, thus having a high-quality supply of raw materials, which also laid a solid foundation for it to enter a period of explosive growth.
As a result, in 2020, Proya launched a number of products on the market, such as ruby essence, double antibody essence and source power essence, etc., which have enjoyed excellent sales for several consecutive years after their launch. At this point, Proya's strength in creating large items began to be highlighted.
(Photo / Proya PROYA official WeChat)
It is revealed that after years of precipitation, up to now, Proya has formed three family series of bispecific antibodies, rubies and yuanli, all of which have been upgraded and iterated to version 2.0 or 3.0, and the categories have expanded to essences, masks, creams, eye creams and lotions; In 2023, the energy series will be launched to provide consumers with scientific solutions for root anti-aging, and constantly improve the matrix of large single products.
Of course, at the time of the explosion of the strength of large single products, Proya did not completely rely on this, but was actively looking for a second growth curve.
From the financial report, it can be clearly seen that Caitang is the seed player. In 2019, Proya acquired Caitang, a professional makeup artist brand, and created it in the same way as the main brand, through a large single product strategy and marketing promotion. In 2023, Caitang's revenue will exceed 1 billion yuan, becoming the second brand after the main brand Proya, accounting for 11.26% of revenue.
And the growth rate of Caitang is still improving. Its core products, such as "Three-color Contour Palette", "Two-color Highlighter", "Two-color Highlighter", "Master Primer" and "Three-color Concealer Palette", all rank among the top two in the corresponding categories on Tmall.
(PHOTO / CAITANG TIMAGE OFFICIAL MICRO)
In this way, Proya's product matrix advantages are becoming more and more obvious: super large products are the most powerful "armored soldiers", and the second brand is the flexible and exquisite "Charger". The two perform their own duties and jointly promote Proya to move forward towards a 10 billion beauty company. And the achievement of this goal is not far off.
3. Forward-looking omni-channel layout, online channels have become the main battlefield
How to reach more consumers with good products? This is a proposition shared by almost all consumer goods companies, especially at a time when consumers have multiple channels and more complex consumer decisions.
In this regard, Proya has not been affected, but has achieved a series of breakthroughs in the channel. In the era of "channel is king", this is tantamount to mastering the market.
According to the financial report data, Proya's online business will contribute 8.274 billion yuan in revenue in 2023, a year-on-year increase of 42.96%. Specifically, during the reporting period, online direct sales channels contributed 6.748 billion yuan in revenue, an increase of more than 50% year-on-year, accounting for 75.91%; At the same time, online distribution, offline daily chemical and other channels maintained a slight growth.
Mainstream e-commerce platforms such as Tmall, Douyin, Vipshop, Pinduoduo, and JD.com have become the main battlefield of Proya's layout.
According to public information, in 2023, the turnover of Proya's Tmall flagship store will rank 2nd in Tmall beauty and 1st in domestic products; During the Double 11 event, the turnover of Proya's Tmall flagship store successfully topped the Tmall beauty rankings.
Let's take a look at the Douyin channel. In 2023, Proya brand turnover ranked 3rd on Douyin Beauty and 2nd in domestic products; During the Double 11 event, Proya's brand turnover ranked first in Douyin beauty.
Similarly, during the 2023 Double 11 event, Proya also won the first place in JD.com's domestic beauty.
Behind these achievements is Proya's R&D investment based on a keen insight into consumer needs. According to the financial report data, in 2023, Proya's R&D expenses will be 174 million yuan, a year-on-year increase of 35.59%. In the same year, Proya Hangzhou Longwu R&D Center and Shanghai R&D Center were officially put into use, empowering the product strength of large single products with R&D strength, continuously building and optimizing the core large single product matrix, strengthening brand tension and enhancing brand vitality.
(Photo / Proya PROYA official WeChat)
After a series of layouts, Proya's online channel contribution has become increasingly prominent. According to the data, in 2023, the sales ratio of its online channels has increased to 93.07%.
Actively embracing online e-commerce channels, Proya has plugged in the wings of take-off, which is bound to bring a new round of growth.
"In the past 20 years, Proya has witnessed the courage to make waves in the torrent of the times, from its establishment, to its survival, to its development, to its growth." Fang Yuyou, co-founder and CEO of Proya, concluded at the company's 20th anniversary press conference.
Indeed, from the early deep cultivation of CS channels, to growing up in the era of traditional e-commerce, and then to today's era of interest e-commerce, Proya has completely experienced the channel changes in China's cosmetics industry, and has seized the market dividends brought by each channel change.
China's cosmetics industry is a sunrise industry, with an overall scale of nearly 800 billion yuan in 2023. The overall consumption age group has broadened upwards and downwards at the same time, from women to men, and the consumer base has been expanding, and it may reach a trillion scale in three or five years, and there is still a lot of room for development in the future.
Proya's strategy of multi-brand layout and multi-category development has achieved phased results, laying a good foundation for long-term sustainable growth.
In this process, its insight into consumer needs has captured "people", the strategy of large single products has seized "goods", and the success of new channels has seized the "field", and finally Proya has formed a unique virtuous circle. From this point of view, Proya's future performance is even more worth looking forward to.
*The title picture in the article comes from: Proya PROYA's official WeChat.