After experiencing the nightmare of four consecutive drops in revenue and starting a five-year transformation plan, Perfect Diary Beauty's parent company Yixian E-commerce recently handed over its latest report card. Unfortunately, there was no surprise to the market: revenue declined, losses continued, the main beauty business is deteriorating, as the new growth curve of skin care business failed to lead...

The report card, in many ways, is hardly optimistic. Will be relaxed, Yi Xian e-commerce experience is but a Chinese beauty brand epitome. With the efforts of international brands, the time and space left for domestic beauty brands are getting smaller and smaller, and the anxiety of domestic brands is also a little deeper.

The rise of perfect diaries is due to the right circumstances: the grass-growing community represented by Little Red Book provides a steady flow of beauty brands; The rise of live streaming e-commerce, its cost-effective advantage to the extreme. But now those advantages are being eroded.

Look at the Yi Xian e-commerce financial results, the biggest problem is that revenue continues to decline. Data showed that the total revenue of Yixian e-commerce in the fourth quarter was 1.005 billion yuan, down 34.23% year on year; Revenue in the 2022 fiscal year was 3.706 billion yuan, down 36.54 percent year on year.

From the growth curve, the decline of Yixi e-commerce has lasted for a long time: by the fourth quarter of last year, its revenue recorded five consecutive year-on-year declines, from the fourth quarter of 2021 to the third quarter of 2022 year-on-year declines of 22.12%, 38.3%, 37.57% and 36.11% respectively. Although the decline in the fourth quarter narrowed slightly, and the peak is still a big gap.

If the Perfect Diaries want to make a comeback, they need to find a new formula.

The popularity of the perfect diary can be traced back to 2018. This year, Yi Xian e-commerce to strengthen in the small red book, Douyin and other platforms, and a large number of KOL established a cooperative relationship. The overwhelming viral publicity, coupled with cost-effective, new and fast products, help Perfect Diary quickly harvest the hearts of Generation Z.

However, there is a shelf life for any type of play. Flow dividend decline, low price strategy failure, the perfect diary is difficult to stay young forever. Huaxizi and other competitors are facing the same problem and need to adjust their strategies. Incubation and acquisition of new brands, improve the proportion of skin care business, is an attempt to respond to Yee Xian e-commerce. Whatever the effect, at least the first step has been taken.

In fact, Perfect Diary this batch of local brands from popularity to decline, but only a few years, the existence of deficiencies is normal. Estee Lauder, Lancome also experienced a low tide, but also rely on years of accumulation to climb to today's high.

Chinese beauty makeup has a long way to go, Yi Xian e-commerce is not necessarily the ultimate climber. But the spark has been lit, and the domestic beauty industry will not stop exploring.