Animal eyeshadow palettes, slender and lipsticks, these familiar beauty products are all from the perfect diary known as the "light of domestic products". This brand, which was born in 2017, has frequently exploded in the field of new domestic make-up. With its affordable price and the reputation of replacing big brands, it has quickly become a dark horse in the new domestic make-up, and it has also become a popular object of capital. In November 2020, Yixian E-commerce, the parent company of the perfect diary, landed on the US stock market, creating another myth in the capital market.
However, Yixian E-commerce has only maintained a good performance in the stock market for 3 months. Since then, the stock price of the perfect diary has shown a downward trend. In April this year, it received a delisting warning letter from the New York Stock Exchange. From the rise to the fall of the "first domestic beauty makeup stock", what happened to the perfect diary?

Go and stay "speed of life and death"
On May 24, Yixian E-commerce announced its first quarter performance report for 2022. The report shows that the company achieved a total net income of 891 million yuan in the first quarter, a decrease of 38.3% compared with the same period of the previous year; the net loss was 291 million yuan, and the loss narrowed compared with the same period of the previous year.
At the subsequent media conference, Huang Jinfeng, the founder of Yixian E-commerce, admitted that the company is facing an existential crisis. This is true. In April this year, Yixian E-commerce received a delisting warning letter from the New York Stock Exchange. The letter showed that the company's stock price had an average closing price of less than $1 for 30 consecutive trading days. If the stock price of the perfect diary rises above $1 within the next six months, the NYSE will initiate a suspension and delisting process.
Since March this year, the share price of Yixian E-commerce has been below US$1. Although the stock price has rebounded recently, it has never exceeded US$0.7, and the target of US$1 is even more distant.
Why is the stock price like this? Industry analysts believe that on the one hand, the market is cold. From January to April this year, the sales growth rate of the cosmetics industry has shown a year-on-year downward trend; on the other hand, it is inseparable from the company's long-term losses. Data shows that since its listing in November 2020, Yixian E-commerce has been in a continuous loss situation, with net losses of 2.688 billion yuan and 1.547 billion yuan in 2020 and 2021, respectively.
External factors cannot be ignored, but the more critical impact comes from its high marketing expenses. After 2020, Yixian e-commerce marketing expenses will account for more than 60% of the total revenue for the year. The continuous increase in marketing expenses will directly affect the net profit level of Yixian E-commerce, making it a continuous strategic loss. under, and the amount of loss continues to expand.
Success is also marketing, failure is also marketing
Although the outside world has been criticized for the crazy marketing of Perfect Diary, it is undeniable that the marketing operation of its brand was once a model in the industry.

However, what is certain, whether it is transforming to the mid-to-high end or developing the skin care product track, the core still has to return to product strength. That is to say, the original "burning money for scale" style of the perfect diary is no longer possible. copy.
Huang Jinfeng, the founder of the perfect diary, also knows that the success of Yixian e-commerce in the first five years is due to the traffic dividend, and the next five years will be driven by product development and product strength. Recently, Huang Jinfeng announced a "second entrepreneurship": first make a profit, let the company survive, and then continue to develop products and build brands.