Perfect Diary is building up its offline presence with plans to launch 600 bricks-and-mortar stores countrywide within the next hree years, Chinese media reported. The company is well-known for creating new customer growth models.

Why it matters: Perfect Diary is among a rising group of homegrown brands, known as guohuo in Chinese, that are finding increased popularity among younger demographics.

  • The brand capitalized on China’s mature e-commerce environment to create brand awareness.
  • They used online-focused marketing strategies that include WeChat-based CRM as well as content marketing across platforms like Xiaohongshu, Weibo, and Bilibili.
  • They’ve also worked on co-branded products with KOLs, idols, and the British Museum and Chinese National Geography.

Alibaba eyes lower-tier, overseas markets to power Singles Day growth

Details: Yatsen E-commerce, the parent company of Perfect Diary created a new retail division at Fengxian District of Shanghai this Thursday.

  • The company already has offline stores in Shanghai, Hangzhou, Suzhou, and Nanjing. They will be launching new stores in eastern China’s Changzhou and Ningbo soon.
  • The Guangzhou-based company plans to speed up its offline expansion over the next three years by opening 600 stores countrywide. 200 will be located in eastern China, a more developed region in the country.
  • Targeting at the lower-tier market, the company’s retail head Feng Qiyao told local media they are aiming to have 80 stores in China’s third- or fourth-tier cities by 2020, up from three so far this year.
  • To fuel the offline expansion, the firm plans to hire 3,000 beauty consultants for the new stores.

Context: Founded in 2016, Perfect Diary is an e-commerce-based cosmetic brand targeting young Asian female users.

  • The company reportedly completed a new financing round from Hillhouse Capital, Sequoia Capital and Chinese Culture Group at a valuation of over $1 billion this September.
  • As part of Alibaba’s new brand and product-boosting initiative, Taobao and Tmall president Jiang Fan pledged to help launch 100 million new products as well as incubate another 100 new brands with the goal of generating RMB 1 billion ($149 million) in sales each over the future three years.

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at More by Emma Lee

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