In the first half of this year, it was a period of pain and struggle for many domestic brands in the beauty industry, in addition to the "dimensionality reduction attack" of international enterprises, as well as the impact of factors such as raw materials.
As an old domestic beauty brand, Proya's position and achievements are surprising. It not only adapts to the new "rules of the game" in the era of social media, but also makes efforts in products, launches its own ultimate large single products, and occupies the ...... of consumers' mindsWhether it is product innovation, marketing communication, or brand resonance, Proya has shown new vitality.
In the semi-annual report just released today, Proya achieved marketing revenue of 262.6 billion yuan, a year-on-year increase of 3693%, net profit attributable to the parent company 29.7 billion yuan, a year-on-year increase of 3133%, in the stressful year of 2022, it still achieved rapid growth against the trend.
How does Proya adapt to the new market environment, maintain evergreen, and how does it complete further strategic upgrading?
At the site of the 2022 annual conference hosted by Jumei and titled by the professional skin care brand BaizhicuiFang Yuyou, co-founder and CEO of ProyaPublished on the topic of:"Competition has entered a new stage, and domestic brands have risen from awakening".The following is a summary of the highlights of the speech:
Entrepreneurship is a non-stop long march
Looking back on the nearly 20 years of Proya's development, it has completely experienced the transformation of the cosmetics industry. Proya started from the original CS channel, and has experienced the era of e-commerce, the era of TV and the current era of social media, and each stage needs to conform to the big melody of the times.
In the initial "channel era", we started from the initial "9-person team" and ran every province and ** store to bring the human efficiency to the extreme. However, around 2008, we found that the model of relying on channel distribution began to have growth bottlenecks, and relying solely on policies and sales did not bless brand power.
As a result, from 2008 to 2012, Proya began to carry out publicity and marketing on TV: CCTV, Zhejiang Satellite TV, Hunan Satellite TV and other TV channels; In "Ruili", "Fashion Cosmo" and other fashion**; Proya can be seen in public spaces such as buses and building billboards. The overall results have also been good, and the annual sales have almost doubled.
In the third period - the era of e-commerce, we are also slowly groping out a way, once because of the big promotion crazy discount** caused dissatisfaction of channel providers, from experiencing **chaotic prices to slowly improving the ** system, slowly solving the contradictory relationship between online and offline dealers and retailers. Now we realize that we should treat both online and offline consumption equally.
In the era of social media, we have solved the contradiction between online and offlineStarting from the product, we came up with a large single product strategy。In 2020, Proya launched two major products, ruby essence and double anti-drug essence, which were recognized by consumers. With the promotion of sales of large single products, the company's product sales have increased rapidly. At present, Proya's online channels can empower offline channels, because the online explosive products are all recreated, which will not affect offline products, but increase the brand premium.
Here, my advice to all brands isOnline and offline products are separated, try not to use offline products to sell in online channels such as live broadcast rooms, Proya can feed back to offline channels after opening online channels through large single products, which is a win-win situation for channel providers.
For Proya, although it has been upgraded and transformed through four eras, it has also made certain achievements, but in the future, Proya still needs to continue to "upgrade and fight monsters".
The mountain of scientific and technological strength on the new journey is the biggest challenge at present
On the new journey, we must emphasize the strength of science and technology, and emphasize that science and technology are real productive forces. This is also the biggest challenge for many functional skincare brands today, and these pressures come from:
1. Consumers are becoming more and more demandingBecause of the influence of factors such as party bloggers and the development of the Internet, modern consumers are very professional. Research-based buying is the way to go.
2. Stricter national laws and regulationsStarting a business to make cosmetics with a low threshold has become a thing of the past, and the cost of raw materials and time will increase compared with before. It can be said that the state is making cosmetics according to the standards of making medicines.
3. Historical precipitation of international brandsWhile domestic products are developing, the sales of international brands are also growing, and the two driving forces of international brands come from brand precipitation and scientific and technological power. It takes at least 10 years for a product to land from basic research to raw materials, formulas and final products, while international companies themselves have research barriers at the raw material and technical levels, which requires domestic brands to catch up.
4. Relative lack of talents:Not only in the cosmetics industry, but also in the pharmaceutical industry, there is a shortage of real R&D talents.
In order to enhance the competitiveness of science and technology, Proya's initiatives in this regard are:
Effectiveness R&D, that is, insight into the present + ** future
The future refers to future consumer trends based on technology trends. Proya's current R&D team has more than 100 people, and our research directions include science, biology, medicine, etc., which can inspire a lot of research on cosmetics. Therefore, according to the whole general trend and the research direction of various fields, Proya is in full swing.
Insight into the present, that is, based on the analysis of the current situation, insight into consumer demand, from consumers to consumers. Proya pays attention to the data of various platforms such as Tmall, Douyin, and Xiaohongshu every day to analyze consumer needs and what raw materials can be used to solve these functional needs. For Proya, there is research from the field of R&D, and there is also research from the needs of consumers, and for start-ups, starting from the needs of consumers is the most efficient.
Currently Proya'sR&D pathYes: Tech Trends Demand Insight (Capture data from various platforms to gain insight into needs) > demand demonstration > Set up a R&D team > laboratory to evaluate the matching degree of R&D results and needs (R&D personnel and marketers communicate with each other to form a joint force, Proya has set up a special position, which needs to understand the language of both parties at the same time and coordinate communication) > Audience Research (Consumer KOL Experts) > Listing > Sales Feedback > new Wheel Hole Insight (This is also an important reason why Proya's star products have been iteratively upgraded)
Collaborative R&D: Internal and external collaboration to break down organizational barriers
Product development requires internal and external collaboration, and organization is very important. For example, the product and the content are one, and the product needs to be developed to think about the content that can be produced.
Proya's product research and development is based on small groups, including consumer research department, consumer service department, product planning department, sales operation department, marketing department, R&D department, design department, and chain department, of which the R&D department, design department, and chain department have external scientific research, design, raw materials and packaging partners, etc., and the entire organization works together in a "network" manner.
In the past two years, Proya's rapid development is inseparable from organizational synergy. There is no obvious subordinate within Proya company, everyone calls each other "classmates", everyone has a point to learn from each other before, what we need to do is to break the barriers of the department. The leader of each department is to provide support and service, not to make a decision, and Proya's internal decision-making is the collaborative team of each project.
Forward-looking R&D: self-construction and cooperation in parallel, international layout
This requires us to base ourselves on the best science and technology of the Chinese people, extend the needs of Asians, and learn from European and American technologies and methods
- Hangzhou headquarters R&D center has been established, including basic research, applied research, raw material research, etc
- Hangzhou Wu National Technology Center is under construction
- Preparations are underway for the establishment of research centers in Shanghai and Japan, giving full play to the advantages of local R&D talents
- Cooperate with top raw material laboratories at home and abroad, such as Xinyang, Paipeptide, CEVA, CODIF, Lipoture, BASF, Yashilan, etc
I think Proya has been growing. Because we want to study the post-90s and post-00s consumers, we must be at the same frequency as them, and we must maintain a state of continuous learning. Therefore, our R&D has been innovating, the organization has been reforming, the brand has been precipitating, and the service has been improving ......
The road is long and difficult, but Proya is always on the way!