The 2023 (16th) China Cosmetics Conference, hosted by Cosmetics Watch and CIE Beauty Innovation Exhibition, officially kicked off at the Shanghai International Convention and Exhibition Center. At the meeting, Fang Yuyou, co-founder and CEO of Proya, delivered a speech entitled "Strategic Organizational Change Through the Cycle".
At the scene, Fang Yuyou shared that since Proya was listed in 2017, its market value has increased 10 times to 45 billion, and its performance has increased by 35 times, in this process, from online to offline, from online to online, from online to brand, Proya has also faced all kinds of problems, but they have been transforming themselves.
In his view, in the unpredictable market wave, strategic power * brand power * entrepreneurship is the password for enterprises to go through the cycle.
Strategic power: consumer-centered iteration mechanism
At the beginning of the speech, Fang Yuyou shared Proya's strategic changes in recent years.
He especially remembers that after the listing in 2017, many brokerages asked him a question: "What is Proya's future plan?" ”
But at that time, I thought it would be good to go public, and I didn't think deeply about this issue, so I began to slowly learn whether there was a better strategy to promote the development of the enterprise. ”
He shared that initially, Proya formulated a troika strategy, focusing on offline channel leadership, e-commerce growth, and single-brand store operation to grow; In 2018, with the rise of the Internet, I felt that products should be younger, and put forward the four strategies of internationalization, platformization, ecology and youthfulness; In 2019, on the basis of the four modernizations, Proya proposed that digitalization is still needed to build a truly digital company; But now, in order to shorten the distance with consumers, Proya has proposed a 6*n strategy:
First, new consumption. Taking Proya as an example, in the past, Proya may have sold more to 35+ female consumers in third- and fourth-tier cities, but now, Proya's consumers are mainly cutting-edge white-collar workers and Generation Z in first-tier, new first-tier and second-tier cities. In Fang Yuyou's view, with the transformation of consumers, enterprises need to think about how to meet the needs of more consumers and do a good job in consumer value innovation services.
Second, new marketing. Enterprises need to focus on enhancing the brand's power and influence among young consumers. For example, Proya launches relevant content on the topic of women's equality every year, "We have a team of dozens of people dedicated to this content".
Third, new technology. Focus on basic scientific research, layout of new raw materials, new R&D technology, and develop more R&D partner resources in different fields to form a global R&D layout, provide scientific and technological support for targeted improvement of product strength, and create continuous and hard-to-replicate R&D technology competitiveness, such as Proya's R&D centers under construction in Hangzhou Longwu, Shanghai and Japan.
Fourth, new intelligent manufacturing. Create an agile and flexible chain of service large single product matrix, apply digital management system, improve production quality, strengthen chain supervision, and ensure product quality.
Fifth, a new mechanism to establish a flexible and business-oriented multi-incentive mechanism.
According to Fang Yuyou, Proya has four consumer-centric mechanisms:
One is the matter, look at the "business". "Everything is based on the consumer as the core of business planning, we do what consumers want, product development, R&D system construction according to consumer needs, etc. ”
The second is people, with quasi-people. In Fang Yuyou's view, what kind of people can be used to make what kind of products, therefore, Proya will select a large number of capable young people, "this is what Proya has been spending more energy on."
The third is profit, which is divided into "money". "Proya will judge heroes by 'contribution', not by 'position' and 'seniority'. "Taking the project as an example, if an ordinary employee creates performance for the company in the project, the employee will be rewarded directly, rather than according to the rank. ”
The fourth is the right, the right to match. For most companies, the powers of the CEO, vice president, and business unit director are delegated at different levels, but Proya emphasizes that the dynamics empower the positions closest to consumers. For example, if a large item needs to be placed on Douyin, then the colleague in charge of the placement can "vote as much as you like" within the company's regulations.
Sixth, new organizations.
Before 2017, Proya was a vertical organization, but the development of the enterprise was overly dependent on the locomotive (leadership), easy to rely on intuition and experience to make decisions, and easy to fall into the 'personal hero' doctrine".After 2017, Proya adjusted to a matrix organizational structure, focusing on consumers, so that every employee has self-motivation. ”
Under this organizational system, the role of the leader is not to control, but to support and solve problems. ”
Brand power: Build a multi-brand matrix
Fang Yuyou shared that in addition to the main brand Proya, at present, Proya has built a relatively complete multi-brand matrix
Among them, Proya focuses on scientific and technological skin care, targeting young white-collar women, while Yuefuya is customized for young skin and young college students.
Caitang and insbaha are the main makeup brands, the former is positioned as a new national style makeup artist professional makeup brand, and the latter is positioned as a punk style cutting-edge professional makeup brand.
It is a high-end skin care brand based on Kerui and Singuladerm. The former is a high-performance skincare brand, and the latter is a Spanish laboratory professional skincare brand.
A care brand based on off&relax. The brand is positioned as a Japanese scalp health specialist.
He said that at present, brands such as Caitang, Off&Relax(or), and Yuefuyuan have achieved good growth, and "in the next 3-5 years, each brand will have more room for development."
Entrepreneurship: Lifelong learning and self-subversion are the core
Many people ask me, why are you so energetic every day, why do you have so much energy every day? ”
In fact, first, lifelong learning. ”
Fang Yuyou shared that he has grown up with Proya for 20 years, and he has been learning with the team.
Now the environment is changing rapidly, consumers are becoming more and more demanding, and product functions are becoming more and more demanding, so what should I do? Study, learn in any aspect, and eliminate if you don't learn. ”
Second, self-subversion.
Proya is still an entrepreneurial company today, everyone has strong execution, everyone is creating, it is thanks to this, Proya can create so many things in these 3-4 years, this is the process of self-subversion, is the spirit of daring to fight. ”
Third, praise has a sense of mission.
Someone asked me, Proya has been doing it for 20 years, when will you retire, I said what to retire, we are compared with international brands, Japanese consumers, American consumers, there is still 3-5 times the room for development, and China's R&D technology has 10-20 years to go. Fang Yuyou said that the sense of mission is very important for entrepreneurs, and they must have the belief of unremitting struggle for the industry, the company and the brand.
There is still a long way to go for Chinese cosmetics, and we still have to work hard. ”
China Cosmetics Conference is known as the "Davos Forum" of the cosmetics industry, this conference is sponsored by Isjia shares, Freda biological shares, Zhongtong Biochemical, Beihao Group strategic cooperation, the theme is "leap of faith", the main forum speakers include: Freda biological general manager Gao Chunming, Shanghai Jahwa chairman and CEO Pan Qiusheng, Beihao Group CEO Liang Hongli, Proya co-founder and CEO Fang Yuyou, etc.
On July 4, the conference held 11 sub-forums at the same time, including effective skin care, CS innovation, marketing innovation, live e-commerce, new product development, new retail, KOL growth, and raw material innovation, and more than 100 industry leaders gathered to share the latest thoughts and trends.