The top spot of domestic beauty cosmetics is changed to the main one. Polaiya eats the ＂big single product＂ bonus. When the second brand is built,

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　　Source: China Times

　　Just promoted to the "new champion" of domestic beauty cosmeticsPolaiyaCan’t wait to start building the second curve. At the performance briefing held on April 25th,PolaiyaFang Yuyou, director and general manager, mentioned in response to investors’ questions about how to ensure the status and stability of his own brand, "We will serve the second brand echelon with embryonic form and the brands in continuous incubation, and form a brand matrix with skin care, make-up and personal care as embryonic forms."

　　In 2023PolaiyaThe revenue growth rate reached a new high, exceeding the 8 billion level.shanghai jahwa corporation, boarded the throne of the first domestic beauty. However, "it’s easier to fight the country than to defend it", and the company is currently facing the risk of dependence on the main brand. In recent years, the revenue of the main brand has been about 80%. Now Polaiya, who has reached the top of the local rivers and lakes, has begun to build a second brand according to the gourd painting.

　　Channel dividend

　　After several years of rapid development, Polaiya finally surpassed.shanghai jahwa corporationIn 2023, its operating income increased by 39.45% year-on-year to 8.905 billion yuan, far exceeding.shanghai jahwa corporation6.598 billion yuan; The net profit attributable was 1.194 billion yuan, a year-on-year increase of 46.06%. It is worth mentioning that the growth rate of these two indicators has reached a new high since Polaiya went public.

　　In the first quarter of 2024, Polaiya continued its growth trend, achieving an operating income of 2.182 billion yuan, up 34.56% year-on-year, and a net profit attributable to 303 million yuan, up 45.58% year-on-year. In this regard, Polaiya said that it is due to the revenue growth of its online channels.

　　Polaiya was founded in 2006 and listed in 2017. It is an old brand of domestic cosmetics. Two years before and after listing, the company also experienced a period of time. From 2014 to 2017, its revenue did not change much, and it did not take off until 2018. In that year’s annual report, the company mentioned the channel structure adjustment.

　　In recent years, thanks to the rapid development of the Internet, online e-commerce has become more and more prosperous. According to the annual report, from 2018 to 2020, the company’s online channel revenue basically maintained an increase of about 60%, and the growth rate from 2021 to 2023 was also over 40%. In this process, in 2019, the online channel revenue of Polaiya was 1.655 billion yuan, accounting for 53.09%, which officially exceeded the offline channel revenue of 1.462 billion yuan, accounting for 4.691%. After that, the gap between the two sides further increased. In 2023, the online channel revenue of Polaiya was 8.274 billion yuan, accounting for 93.07%, and the offline channel was.

　　At the investor exchange meeting in May 2023, Polaiya said that 2023 is the first year of offline opening. According to the annual report, the company’s offline channel revenue experienced a slight increase of 7.35% in 2023 after experiencing a decline in 2021 and 2022.

　　In this regard, Zhan Junhao, a well-known strategic positioning expert and founder of Fujian Huace brand positioning consulting, said in an interview with the reporter of China Times that "Polaiya’s tropic of cancer is mainly based on the comprehensive consideration of market trends and company strategy. As consumers’ demand for offline shopping experience gradually picks up, Polaiya sees the potential and opportunities of the offline market. At the same time, the company also hopes to further enhance brand awareness and market share through the expansion of offline channels. "

　　As we all know, in the current market environment, the offline market of beauty products is basicallyEstee LauderInternational beauty giants such as L ‘Oreal occupy it. How will Polaiya end up "grabbing food" with international beauty giants? At the performance exchange meeting held on April 25th, Fang Yuyou replied to a reporter’s question from China Times, saying that the offline channel planning of the main brand Polaiya in 2024 is mainly divided into daily chemical channels and department stores, in which the daily chemical channel will continue to explore and explore the incremental opportunities of channel outlets and explore cooperation opportunities with different formats/industries. The department store channel level will focus on influential business circles and large department stores groups, and plans to open offline stores in many shopping centers across the country. In addition, the company will continue to upgrade.

　　Create a second brand

　　Polaiya’s own brands include skin care brands Polaiya, Yuefushi, makeup brand Caitang and Off&Relax, among which the main brand Polaiya has always accounted for about 80% of its revenue. The rise of the main brand Polaiya is inseparable from the successful implementation of the big single product strategy. In the 2020 annual report, the company first proposed to implement the strategy of large single products, and created large single products such as ruby essence and double anti-essence. After that, the company continuously upgraded and expanded these products, and at the same time, it was assisted by marketing promotion.

　　In those years, Polaiya continued to expand the popularity and influence of its products by inviting celebrity spokespersons, official announcements and China Aerospace IP to jointly launch marketing projects on important social issues such as gender equality, family responsibilities and the growth of young people.

　　This also means that Polaiya needs to spend a lot of promotion expenses. Since 2020, its sales expense ratio has increased continuously, from 39.9% in 2020 to 44.61% in 2023. From 2020 to 2022, the company’s sales expenses were 1.497 billion yuan, 1.992 billion yuan and 2.786 billion yuan respectively, of which the image promotion expenses reached 1.226 billion yuan, 1.673 billion yuan and 2.786 billion yuan respectively. In 2023, its sales expenses were 3.972 billion yuan, an increase of 1.186 billion yuan or 42.59% year-on-year. In this regard, the company said that it was mainly the incubation of new brands, the exploration of offline channels and overseas channels that led to an increase of 1.114 billion yuan and an increase of 4.604% year-on-year.

　　While successfully building the main brand, Polaiya also wants to build a second brand. At this performance briefing, when Fang Yuyou replied to investors about ensuring their own brand positioning, he not only said that he would continue to enhance the strength of the company’s large single product, and continue to build and optimize the core large single product matrix, but also said that he would serve the second brand echelon with embryonic form and the brands that are constantly incubating to form a brand matrix with skin care, make-up and personal care as embryonic forms.

　　At present, Caitang is the most powerful player in its second brand. In 2019, Polaiya acquired the professional makeup artist brand "Caitang". For Caitang, the company chose the same building method as the main brand, through the big single product strategy and marketing promotion. In 2023, the brand’s revenue was 1.001 billion yuan, second only to the main brand Polaiya, accounting for 11.26% of the revenue. It should be noted that from 2021 to 2023, the revenue growth rate of Caitang was 103.48%, 132.04% and 75.06% respectively.

　　In this regard, Zhan Junhao believes that the slowdown of Caitang’s revenue growth is mainly related to factors such as fierce market competition and changes in consumer demand, but it still has great potential. As long as it can accurately grasp market trends and consumer demand, it is possible to achieve sustained and steady development.

　　For the planning of Caitang in 2024, at the performance conference, Fang Yuyou replied to a reporter’s question and said that mainly from the aspects of brand, product, marketing and channel, the brand continued to take "China makeup is original and beautiful" as the brand expression, and the product continued to consolidate the strategy of big single product, maintaining the TOP position of the existing facial makeup industry, focusing on the category of big makeup, and marketing penetrated the mind and channel of "professional makeup artist brand customized for face of china"JD.comAs the core channel, strive for top ranking.