Subject category:
Strategy and General Management
Published by:
Asia Case Research Centre, The University of Hong Kong
Version: 13 July 2023
Length: 21 pages
Data source: Published sources
Share a link:
https://casecent.re/p/196328
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
Perfect Diary is the first Chinese beauty brand based on a direct-to-consumer (DTC) business model. Launched by Yixian E-Commerce in 2017, it is designed to be an affordable alternative to foreign cosmetics brands, targeting Gen Zs and millennials in China. It was the number one brand in China's online color cosmetics market in 2019. Its parent company Yixian went public under the name Yatsen Holding Limited (NYSE:YSG) in November 2020. The brand had achieved enviable growth from startup, with revenue reaching USD655.2mn in 2021. However, things soon took a downturn for Perfect Diary. Growth stalled, and eventually its sales started to decline in 2022. The case aims to (1) illustrate how Perfect Diary used a blue ocean strategy and internet strategy to grow and expand; (2) identify the key reasons of its rapid decline; and (3) explore strategic options for the brand to regain success.
Teaching and learning
This item is suitable for undergraduate and postgraduate courses.Geographical setting
Region:
World/global
Country:
China
Featured company
Yixian E-Commerce
Employees:
1001-5000
Type:
Public company
Industry:
Media, retail & wholesale
Featured protagonist
- Jinfeng Huang (male), Founder, Chief Executive Officer and Director of Yatsen Holding Limited
Subject category:
Strategy and General Management
Published by:
Asia Case Research Centre, The University of Hong Kong
Version: 13 July 2023
Length: 9 pages
Data source: Published sources
About
Abstract
Perfect Diary is the first Chinese beauty brand based on a direct-to-consumer (DTC) business model. Launched by Yixian E-Commerce in 2017, it is designed to be an affordable alternative to foreign cosmetics brands, targeting Gen Zs and millennials in China. It was the number one brand in China's online color cosmetics market in 2019. Its parent company Yixian went public under the name Yatsen Holding Limited (NYSE:YSG) in November 2020. The brand had achieved enviable growth from startup, with revenue reaching USD655.2mn in 2021. However, things soon took a downturn for Perfect Diary. Growth stalled, and eventually its sales started to decline in 2022. The case aims to (1) illustrate how Perfect Diary used a blue ocean strategy and internet strategy to grow and expand; (2) identify the key reasons of its rapid decline; and (3) explore strategic options for the brand to regain success.
Teaching and learning
This item is suitable for undergraduate and postgraduate courses.Settings
Geographical setting
Region:
World/global
Country:
China
Featured company
Yixian E-Commerce
Employees:
1001-5000
Type:
Public company
Industry:
Media, retail & wholesale
Featured protagonist
- Jinfeng Huang (male), Founder, Chief Executive Officer and Director of Yatsen Holding Limited
Related
Subject category:
Strategy and General Management
Published by:
Asia Case Research Centre, The University of Hong Kong
Version: 13 July 2023
Length: 9 pages
Data source: Published sources