China Securities News (Wang Luo) Liren Beauty disclosed the third quarter report of 2022 on the evening of October 27. During the reporting period, in the face of factors such as slowing consumer demand, Lily Beauty insisted on reducing costs and improving efficiency, actively expanding brands, categories, and platforms, continuing to incubate independent brands, and continuously improving its own competitiveness and corporate risk resistance capabilities. The company achieved operating income of 541 million yuan in the third quarter and 2.098 billion yuan in the first three quarters.
The effect of expanding the brand and expanding the platform appeared
At the end of the reporting period, the number of stores operated by Liren Beauty increased to 163, an increase of 14 stores compared to December 31, 2021. Among them, new stores such as Adidas Personal Care, Innisfree, and Quduoduo have been added to the Tmall/Tmall International platform. While cultivating the Tmall/Tmall international platform, Lily Beauty continued to consolidate the business development of new platforms such as Douyin, and added stores such as Kangru and Aibeimeng on Douyin, Kuaishou, Tmall Supermarket and other platforms. Platform revenue accounts for more than 10%, and the scale of new platform revenue has maintained steady growth. The diversification of business is bringing more imagination to the company’s future development.
Lily & Beauty has been awarded the “Tmall Six-Star Service Provider” for the seventh consecutive time. During the reporting period, it has won the list of excellent service providers including Taobao and Tmall ecological enterprise professional capabilities, “Digital Brand Power Pioneer Ecology”, “Alimama Full Link” “Effective Super Marketing Partner” and other awards, demonstrating high-quality and excellent comprehensive service capabilities. At the same time, Lily Beauty has also been listed on the top 100 private enterprises in Shanghai, the top 100 service enterprises in Shanghai, the top 100 private service enterprises in Shanghai, and the top 100 enterprises in emerging industries in Shanghai in 2022, showing the company’s steady development. strength.
ESG leads business development
Lily & Beauty takes ESG as the strategic framework and important guideline for corporate development. During the reporting period, Liren Lizhuang and the School of Management of Fudan University reached a strategic cooperation, and carried out lasting and in-depth cooperation in various fields such as talent training, recruitment and practice, project research, case cooperation and scholarship assistance, with the integration of production and education and complementary advantages. .
In addition, Liren Lizhuang and Henkel Group will use the RMB payment project as the starting point to jointly open up a new pattern of digital economy + green finance.
”Double 11″ Refinement Operation Empowers Brands
This year’s Tmall “Double 11” pre-sale started at 8 p.m. on October 24. The data shows that on the first day of pre-sale, the pre-sale transaction volume of Lily Beauty’s refined operation cooperative brand Fulu Deya exceeded 20 million yuan, an increase of 88% year-on-year; the star single product Fulu Deya hair shampoo was listed on Tmall Prevention. The pre-sale of hair loss shampoo topped the list; the pre-sale transaction volume of Vaseline personal care products exceeded 20 million yuan, a year-on-year increase of 78%; the pre-sale transaction volume of Klorane Kangru personal care products exceeded 6 million yuan, a year-on-year increase of 198%. At present, the multi-brand and multi-store operated by Liren Beauty are continuing to sell well during the “Double 11” period.
Industry analysis predicts that the online consumption of cosmetics during the “Double 11” this year will further pick up. In addition, after entering the autumn and winter, skin problems such as seasonal sensitivity and dryness will drive the recovery of downstream demand and further promote the increase of cosmetics retail sales in the fourth quarter.
A few days ago, the Huaan Securities Research Report covered Beauty and Beauty for the first time. The research report believes that the company actively expands emerging platforms such as Douyin and Xiaohongshu, builds its own brand, and expands food, service and other categories, and is expected to achieve stable growth.