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Perfect Diary

Perfect Diary

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When former P&G manager Huang Jinfeng (黄锦峰) launched Perfect Diary in 2017, his ambition was audacious—create "the Chinese L'Oréal (欧莱雅)" and prove that domestic brands could compete on innovation rather than just price. Seven years later, Perfect Diary became China's first publicly traded beauty brand with a $4B peak valuation, catalyzing Chinese beauty's transformation as domestic brands doubled their market share among top color cosmetics—proving emerging market founders could win on digital sophistication, not just cost.

Export Primarily China-focused with international exploration
Founded 2017 (Zero traditional advertising at launch)
Production KOL-driven demand across Tmall, JD, Douyin, Xiaohongshu
Scale $916M peak revenue (2021)
Uniqueedge First Chinese beauty IPO catalyzing domestic market share growth

Huang Jinfeng (黄锦峰)’s years at Procter & Gamble provided a master class in how multinational beauty companies operated—but also revealed where these giants were fundamentally blind. While L’Oréal (欧莱雅), Estée Lauder (雅诗兰黛), and Shiseido (资生堂) controlled 78% of China’s $60 billion beauty market through traditional strategies, Huang saw that the market wasn’t shifting from offline to online—it had already shifted. Legacy advantages in retail distribution and traditional media meant nothing when consumers made purchasing decisions based on Xiaohongshu (小红书) reviews, Douyin (抖音) livestreams, and KOL recommendations rather than magazine advertisements.

Timeline

2017 Founded by Huang Jinfeng (黄锦峰) with zero traditional advertising strategy
Former P&G executive (2007-2010, CMK division) launches digital-native beauty brand targeting Chinese Gen Z. Contrarian bet: building trust networks through KOL partnerships rather than traditional advertising spend. Huang previously VP at Yunifang (御泥坊) after Harvard MBA.
Setup
2018 Austin Li (李佳琦) becomes key KOL partner, validating livestream commerce model
Austin Li (李佳琦, 'Lipstick King'), who famously sold 15,000 lipsticks in 5 minutes during a livestream competition with Alibaba (阿里巴巴) founder Jack Ma (马云), became one of Perfect Diary's most powerful KOL partners. Validated influencer-driven marketing model and livestream commerce viability for Chinese beauty brands.
Catalyst
2019-11 First Chinese brand to break ¥100M ($14M) single-day Tmall (天猫) sales (Double 11)
Reached ¥100M during first sales period, broke ¥200M two hours later. Top-selling makeup brand on Tmall (天猫) Singles Day 2019. Validated digital-first strategy could generate massive demand without traditional advertising. Demand driven by community engagement, not discounting.
Breakthrough
2019 Gen Z consumers rank Perfect Diary #2 favorite domestic brand after Huawei (华为)
Tmall (天猫) Gen Z consumer survey. Cultural acceptance milestone: Chinese consumers choosing domestic brands based on quality and relevance, not patriotic obligation. Founder quote: 'In 2019 when Tmall asked Gen Z about their favorite domestic brands, we came second to Huawei (华为).'
Triumph
2020-11 NYSE IPO at $4.46B valuation (ticker: YSG, Yatsen Holding)
November 19, 2020: Raised $617M at $10.50/ADS (top of range). First-day close $18.40 gave market cap of $7.82B. China's first publicly traded beauty brand, marking Chinese beauty industry's arrival on global stage.
Triumph
2021 Revenue peaks at ¥5.84 billion ($916.4M), 11.6% YoY growth
Peak revenue year for Yatsen Holding (Perfect Diary parent). Demonstrated scale achievement of digital-native Chinese beauty brand. Growth moderated from 2020's 72.6% surge as market matured.
Triumph
2022 Chinese beauty brands double market share from 14% (2017) to 28% among top color cosmetics brands
Ecosystem effect from Perfect Diary's IPO success. Multiple Chinese beauty startups raised significant capital: Florasis (花西子, $200M at $1.2B valuation), Colorkey, Judydoll, INTO YOU. Domestic players like Perfect Diary, Florasis (花西子), and Proya (珀莱雅) successfully competing against international giants on innovation and digital sophistication rather than just price.
Triumph
2022 Post-IPO valuation corrections reflect growth sustainability concerns
Market adjustments as investors question unit economics and rising customer acquisition costs. Reality check: viral growth strategies face scrutiny when capital markets demand profitability. Marks transition from hypergrowth to sustainable operations focus.
Crisis
2023 Revenue declines to ¥3.41B ($481M), focus shifts to profitability
7.9% revenue decline from 2022. Non-GAAP net loss improved 34.6% to ¥296.1M. Market maturity and increased competition impact growth. Company prioritizes sustainable unit economics over hypergrowth.
Struggle

Perfect Diary’s 2017 launch strategy would have seemed insane to traditional beauty executives: zero traditional advertising spend. No magazine spreads. No television commercials. No celebrity endorsement contracts. Instead, Huang built relationships with thousands of Key Opinion Leaders across every major Chinese social platform—not paid sponsorships where influencers read scripts, but authentic partnerships where beauty enthusiasts genuinely tested and recommended products. When Austin Li (李佳琦)—who famously sold 15,000 lipsticks in 5 minutes during a 2018 livestream competition with Alibaba (阿里巴巴) founder Jack Ma (马云)—became one of Perfect Diary’s most powerful KOL partners, it validated Huang’s contrarian bet: building trust networks faster than traditional advertising could build brand awareness, and doing it at a fraction of the cost.

The breakthrough came during 2019’s Double 11 shopping festival when Perfect Diary became the first Chinese brand to break ¥100 million ($14M) in Tmall (天猫) sales in a single day. Not through discounting—through demand generated entirely by digital community engagement. When Gen Z consumers told Tmall that Perfect Diary was their second-favorite domestic brand after Huawei (华为), it proved that Chinese consumers were ready to embrace domestic brands based on quality and cultural relevance, not national pride or patriotic obligation.

Huang’s November 2020 NYSE listing at $4B peak valuation wasn’t just Perfect Diary going public—it was China’s entire beauty industry announcing its arrival on the global stage. Within two years, multiple Chinese beauty startups raised significant capital: Florasis (花西子, $200M at $1.2B valuation), Colorkey, Judydoll, INTO YOU—all competing on innovation rather than cost. Chinese beauty brands doubled their presence among top color cosmetics brands from 14% in 2017 to 28% by 2022, with domestic players like Perfect Diary, Florasis (花西子), and Proya (珀莱雅) successfully competing against international giants on innovation and digital sophistication rather than undercutting on price. Perfect Diary’s success didn’t just build one company—it catalyzed an industry transformation validating that emerging market brands could compete on quality, digital sophistication, and cultural relevance.

Data Deep Dive

Business Model & Distribution

  • Business Model: Digital-native D2C evolved to omnichannel + portfolio holding (Yatsen)
  • Distribution Platforms: Tmall (天猫), JD (京东), Weibo (微博), Xiaohongshu (小红书), Douyin (抖音) - multi-platform presence
  • Offline Expansion: Strategic physical retail complementing digital-first foundation
  • Portfolio Evolution: Single brand (Perfect Diary) to multi-brand holding (Yatsen Holding)
  • International Presence: Primarily China-focused with selective international exploration

Financial Performance

  • IPO: NYSE listing November 19, 2020 (ticker: YSG)
  • IPO Terms: Raised $617M at $10.50/ADS (top of range)
  • Peak Valuation: $4.46B at IPO pricing, $7.82B first-day close, ~$11B intraday peak
  • Revenue Peak: ¥5.84B ($916M) in 2021, 11.6% YoY growth
  • Revenue 2023: ¥3.41B ($481M), 7.9% decline from 2022
  • Profitability: 2020 loss ¥2.69B, 2023 non-GAAP loss ¥296M (improving but unprofitable)
  • Double 11 Record: First Chinese brand to break ¥100M ($14M) single-day Tmall (天猫) sales (2019)

Marketing Innovation

  • Launch Strategy: Zero traditional advertising at launch (2017)
  • KOL Partnerships: Thousands of authentic partnerships across all major platforms
  • Austin Li (李佳琦) Collaboration: Key partner, “Lipstick King” who sold 15,000 lipsticks in 5 min (2018)
  • Platform-Native Content: Custom content for each platform (Douyin 抖音 ≠ Weibo 微博 ≠ Xiaohongshu 小红书)
  • Cost Efficiency: Digital community building at fraction of traditional advertising costs

Founder Background

  • Name: Huang Jinfeng (黄锦峰, David Huang)
  • Education: Sun Yat-sen University (中山大学, Guangzhou 广州), Harvard MBA (2013)
  • P&G Experience: 2007-2010, CMK (Consumer Market Knowledge) division, interviewed 10,000+ consumers
  • Pre-Perfect Diary: VP at Yunifang (御泥坊, domestic skincare brand, 2013-2016)
  • Founding Insight: Multinationals misunderstood Chinese digital consumer behavior (2017)
  • Key Obstacle: Overcoming decades of conditioning that foreign brands = quality

Product & Quality

  • Philosophy: “Product is king. Great products make great companies.” - Huang Jinfeng (黄锦峰)
  • Development Speed: Rapid iteration based on real-time consumer feedback
  • Platform Advantage: 18-month multinational cycles vs. weeks for Perfect Diary
  • Quality Positioning: Premium-accessible (competing on quality, not just price)
  • Portfolio Brands: Multiple brands under Yatsen serving different segments post-IPO

Market Position

  • Gen Z Recognition: #2 favorite domestic brand after Huawei (华为) - Tmall (天猫) 2019 survey
  • Market Share Impact: Chinese color cosmetics brands doubled from 14% (2017) to 28% (2022) among top 20
  • Category Validation: First Chinese beauty IPO opened capital access for entire sector
  • Industry Ecosystem: Florasis (花西子), Colorkey, Judydoll, INTO YOU followed with significant funding
  • Competitive Edge: Innovation and digital sophistication, not cost leadership

Strategic Evolution

  • 2019-2020: Digital-native to omnichannel, strategic offline retail added
  • Ongoing: Price competition to premium-accessible positioning
  • Post-IPO: Single brand to portfolio (Yatsen Holding acquiring multiple brands)
  • International: Testing whether model translates beyond China
  • Current Focus: Balancing expansion with operational excellence and unit economics

Industry Impact

  • Chinese Beauty Validation: IPO proved domestic brands could achieve unicorn valuations
  • Capital Access: Multiple Chinese beauty startups raised significant funding following Perfect Diary
  • Market Share Shift: Catalyzed Chinese brands’ growth from 14% to 28% among top color cosmetics (2017-2022)
  • Digital Standards: KOL strategies became industry benchmarks across Chinese beauty
  • Consumer Behavior: Validated Chinese consumers choose domestic brands based on quality, not just patriotism

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