Chinese cosmetics brand “Perfect Diary” acquires Galeénic and plans to list on The New York Stock Exchange

Yatsen, the parent company of Perfect Diary, the online sales king of the new Chinese beauty makeup, formally submitted its prospectus on Oct. 30, US time.

At this point, the newcomer in the industry, which has been at the forefront of the wind and waves in recent years, has finally embarked on the road of listing in the United States. 

According to the prospectus, the total sales of Yatsen in 2019 was 3.5 billion yuan, an increase of 363.7% over the same period last year, and the net income was 3 billion yuan, a substantial increase of 377% over the same period last year. The adjusted net profit (Non-GAAP net income) was 150 million yuan; net income in the first three quarters of 2020 was 3.272 billion yuan, an increase of 73.20% over the same period last year. 

The number of users of Perfect Diary is also growing rapidly, mainly thanks to the company’s omni-channel DTC (Direct-to-Consumer) model. As of Sept. 30, 2020, the official accounts of all Yatsen brands had more than 48 million followers. Among them, the number of DTC buyers of Yatsen in 2019 and the first nine months of 2020 was 23.4 million and 23.5 million, respectively, an increase of 236.3% and 50.0% over the same period last year. The annual unit price of DTC users has also increased from 114.1 yuan per person in 2019 to 120.7 yuan per person in the first three quarters of 2020. 

Perfect Diary is a Chinese cosmetics brand founded in 2018 with e-commerce as the core sales channel. It has grown into the local cosmetics brand with the largest online sales in China, and is known as “the light of domestic beauty”.

The company’s target consumer group is young women born in the post-90s, committed to exploring European and American fashion trends, while combining the facial and skin characteristics of Asian people, aims to develop a series of high-quality, beautifully designed and easy-to-use national make-up products with high performance-to-price ratio for the new generation of women, so as to create an internationally influential Chinese Beauty Icon. 

The most striking feature of the Perfect Diary brand is that it is extremely good at marketing through social networks and has a very good publicity strategy. The company’s marketing channel emerged from Little Red Book, an online celebrity e-commerce platform, and has since expanded rapidly through live streaming on Taobao, and is now available on all Chinese Internet social platforms, including Douyin, Kuaishou, Weibo and Wechat. 

In addition to adhering to the cost-effective route, Perfect Diary is also trying a high-end route. On the same day that the prospectus was submitted, Yatsen officially announced that it had signed an agreement with Pierre Fabre, one of the largest dermatology and care groups in Europe, to acquire a majority stake in French high-end cosmetics brand Galena é nic from the group, and to establish a group-level strategic partnership with Pierre Fabre in the areas of product development and production.