Automobile aftermarket observation: speeding up the cultivation of new supply in automobile aftermarket

  Make an appointment online, and you don’t have to wait to go to the store for maintenance; Flexible production, timely response to small batch parts orders; In recent years, new technologies, new products, new formats and new models have emerged in China’s automobile aftermarket, and the automobile consumption potential has been further released, effectively promoting the scale growth, structural optimization and quality improvement of the automobile aftermarket.

  Digital green transformation, upgrading and upgrading of automobile maintenance service

  "A few days ago, the car was smashed, and the store time was reserved through the mobile phone application, without queuing; It is really convenient to add the model and the year of car purchase, and also intelligently recommend the corresponding accessories. " Mr. Zhang from Hefei, Anhui Province went to a car maintenance shop to repair the car, and the repair was completed quickly, and the process was also comfortable.

  After the vehicle was inspected, Mr. Zhang received an electronic quotation. The required goods and services are each marked with the number and price. The owner can check the inspection status of the vehicle on the mobile phone application. The quotation is consistent with the inspection record, and there is no additional recommendation service, which solves the problems of opaque information and price. Nowadays, more and more consumers choose to carry out automobile maintenance through the "online and offline integration" platform, and the related business volume has achieved rapid growth.

  The digital level of automobile maintenance has improved, and the pace of greening is also accelerating. In a green shared car body panel spraying center in Linping District, Hangzhou, Zhejiang Province, the dust in the dry grinding room was sucked into the integrated bag, and the dust collection efficiency reached 98%.

  "The whole process adopts water-based paint operation, replaces the traditional water milling process with dry grinding process, and is also equipped with compound environmental protection equipment, which can realize the whole process control of waste from source to end." Xiao Youquan, the relevant person in charge of the center, said that some small auto repair shops are prone to environmental pollution due to the lack of professional equipment and personnel, and now the surrounding auto repair shops can come here to share services.

  By the end of 2023, the number of cars in China was 336 million, and the average age of passenger cars has exceeded 6 years, so the demand for maintenance services has increased accordingly. "In 2020, China’s automobile maintenance and repair market will be about 1.42 trillion yuan, and it is estimated that by 2025, the market scale will reach 1.74 trillion yuan." Li Tongmei, Vice Chairman of china automobile dealers association Aftermarket Parts Branch, introduced.

  Li Tongmei believes that the current automobile maintenance service still has the characteristics of "small and weak": on the one hand, standardization and standardized operations need to be strengthened, and the quality and level of maintenance services still have room for improvement; On the other hand, the maintenance service system around new energy vehicles is still in its infancy, and it is necessary to strengthen the technical level and professional talent reserve.

  Different from traditional fuel vehicles, the maintenance of new energy vehicles mainly focuses on "three electricity" systems such as batteries, motors and electronic controls, but there is a big gap in technicians who are proficient in "three electricity" maintenance at present. In view of this realistic demand, some automobile service platforms explore the mode of school-enterprise cooperation and cultivate high-skilled talents.

  In the training base of Guizhou Vocational College of Electronic Technology, students are looking for problems and overhauling the parts of new energy vehicles-this is a practical course of school-enterprise cooperation offered by Tuhu Car Maintenance.

  "We set up new energy automobile classes with vocational colleges, jointly develop courses, build production-education integration bases and practice training bases in Shanghai, Guangdong, Guizhou and other places, and strive to train 1,200 talents in related majors every year, and gradually realize the’ oil and electricity simultaneous repair’ of stores." The person in charge of the new energy vehicle maintenance service market has great potential, and enterprises are actively exploring the provision of tailor-made products and services, and cooperating with new energy vehicle brands to help them provide after-sales service.

  Low cost and high efficiency docking, continuous optimization of parts circulation environment

  There are many automobile brands on sale in China, and there are different types of automobile parts in different years and styles, so there is a great demand for aftermarket parts supply. Promoting the high-quality development of the automotive aftermarket is inseparable from the upgrading of accessories and the improvement of circulation efficiency. In recent years, related enterprises have made some explorations in this regard.

  Small batch and flexible production, more timely response.

  "The axle products of this car are relatively small. We have consulted many companies in China and can’t produce them. Can you provide them?" At 10 o’clock in the morning, the phone of domestic marketing customer service department of Wenzhou Guansheng Auto Parts Group rang.

  "No problem, you send the parameters, and we will organize production immediately." The crisp and neat answer makes the customer very satisfied.

  "At present, Guansheng’s product categories cover most models, which can meet customers’ demand for small batch and multi-variety orders." Chen Xianghua, director of domestic marketing of Guansheng Co., told reporters that such confidence comes from the flexible production line of enterprises.

  Walking into the production workshop, welding equipment and fixture can be quickly switched. Workers can automatically call the corresponding equipment program by selecting the workpiece number on the touch screen, and organize production according to different delivery requirements. "We also use the intelligent scheduling system. For example, after analyzing the data of orders in the next three months, we will gather the products of the same model together for production, shortening the delivery cycle and saving production costs." Chen Xianghua said.

  Full chain, digital docking, and smoother channels.

  Open the Kaisi auto parts platform, and the accessories such as swing arm, headlight and foot glue are all available. It only takes a few seconds to enter the vehicle identification code and the name of the accessories, and the information such as suppliers, quotations, reference price of 4S shop, warranty and so on can be clearly seen.

  "In the past, it was inefficient and error-prone to describe the required spare parts by telephone, WeChat, etc., and it was difficult to trace the source of spare parts. If there was a quality problem, it was more difficult to find a supplier’s warranty. Now through platform integration, parts information and procurement process are more transparent. " Chen Zhongli, head of Ningbo Boxingxing Automobile Service Co., Ltd. said.

  Jiang Yongxing, founder and CEO of Kaisi, introduced that the platform has opened up the whole chain from OEMs, manufacturers, auto parts suppliers, repair shops to vehicles. At present, there are more than 7,000 suppliers providing products and services to 270,000 repair shop users, and the number of service vehicles per month exceeds 3 million. "We have also developed the intelligent identification function of handwritten work orders that are suitable for the maintenance industry, and can recommend procurement plans. Not only that, the big data accumulated by the platform can also be fed back to OEMs and manufacturers in time to help them improve product quality. "

  In terms of optimizing the circulation environment of auto parts, some enterprises aim at the county market and strive to improve the turnover efficiency of auto parts. "New energy vehicles going to the countryside bring a broad space for the development of the automobile industry, but the traditional county maintenance market still has problems such as few chain stores, incomplete product categories and long procurement logistics cycle." Jiao Shiliang, the brand operation director of Guangdong Santou Six-Arm Information Technology Co., Ltd., an auto parts supply chain platform, introduced that in recent years, enterprises have launched the "Let Love Go Home" project to help migrant workers return to their hometowns to open auto parts stores and provide financial support and technical guidance. At the same time, through the combination of online procurement and pre-warehouse, the distribution efficiency has been greatly improved.

  The Guiding Opinions on Promoting the High-quality Development of Automobile Aftermarket jointly issued by the Ministry of Commerce and other nine departments (hereinafter referred to as the Guiding Opinions) proposes to optimize the circulation environment of automobile parts. Actively expand the distribution channels of auto parts, and build a multi-channel and multi-format auto parts distribution network to meet the diversified needs of consumers for auto aftermarket accessories.

  "With the rapid development of the Internet and e-commerce, online channels will become a new hot spot in the automotive aftermarket parts industry, bringing new business models and development opportunities. Automobile after-sales parts enterprises should strengthen the construction of online channels, provide more convenient and high-quality services, and create a transparent, orderly and efficient spare parts circulation environment. " Li Tongmei said.

  Personalized and diversified consumption, the automobile modification market has steadily expanded.

  In recent years, to meet the personalized, diversified and high-quality consumer demand of car owners, the car modification beauty market has steadily expanded.

  "Changing the color change film for the car can not only keep the freshness, but also prevent rubbing and protect the paint." In Hefei Fugui Family Automobile Maintenance Center, Anhui Province, Ms. Huang, the owner of the car, took the color card and chose the color of the color-changing film she liked. Bao Weidong, the owner, told reporters that he has been in this business for more than 20 years. In the past, customers came to the store mainly to repair cars. Now young people have a greater demand for car modification and beauty. Invisible car clothes, color-changing films, anti-ultraviolet and anti-glare functional films are all very popular, and the prices range from several thousand yuan to ten thousand yuan.

  According to the data, car modification and beauty projects such as film pasting, car body color changing and upgrading car audio equipment account for about 85% of the whole automobile reform market. In the first seven months of 2023, the sales of window film, invisible car clothes and color-changing film of TUHU increased by over 40%, over 100% and over 300% respectively.

  Zhang Baoquan, Secretary-General of china automobile dealers association Aftermarket Boutique Service Branch, said that in recent years, with the development of economy and the improvement of living standards, automobile modification, automobile beauty and other related products have been personalized and scene-oriented, and products such as body film, interior decoration, massage and ventilation seats and assisted driving have been recognized by users.

  The Opinions on Further Releasing the Consumption Potential and Promoting the Sustainable Recovery of Consumption issued by the General Office of the State Council proposes to establish and improve the management mechanism of the automobile refitting industry and accelerate the development of the automobile aftermarket.

  "China’s automobile modification market is still in its infancy and has great development potential, but the modified parts and operations have not yet formed a standardized system, and it needs to be further improved in terms of compliance and standardization." Zhang Baoquan believes that it is necessary to further clarify the scope of modification, improve the standard system and upgrade the industrial chain. It is also necessary to strengthen industry supervision, establish unified standards for safety, quality and service of automobile modification, clarify the standards for pre-sale, in-sale and after-sales services, and intensify efforts to promote implementation.

  The Guiding Opinions put forward that "by 2025, the scale of the automotive aftermarket will grow steadily, the market structure will be continuously optimized, and the standardization level will be significantly improved". "Comply with the new trend of automobile consumption and promote technological innovation, model innovation and format innovation, and the products and services in the aftermarket will be more abundant to meet the diversified consumption needs of consumers." Li Tongmei said.

Reporting/feedback

What areas should we focus on to effectively prevent and resolve financial risks? Interpretation of the Authority of China People’s Bank

What areas have you been focusing on in recent years to effectively prevent and resolve financial risks? The People’s Bank of China published a column on November 13th for a special interpretation.

The column pointed out that the People’s Bank of China, closely focusing on the three tasks of serving the real economy, preventing and controlling financial risks, and deepening financial reform, resolutely fought a tough battle to prevent and resolve major financial risks in accordance with the basic principles of "overall stability, overall coordination, classified policies, and accurate bomb disposal", improved the working system and mechanism of financial stability, and disposed and resolved a number of outstanding risk points with great influence, urgency and overall situation in an orderly manner, effectively safeguarding the overall situation of national economic and financial security and financial stability.

Properly handle high-risk groups and high-risk financial institutions.

The column pointed out that the People’s Bank of China adhered to the principles of marketization and rule of law, filled the shortcomings of the system, and "accurately defused" a group of enterprise groups with high risk and large scale. Through the case warnings of bankruptcy liquidation of Baoshang Bank, bankruptcy reorganization of HNA Group, Huaxin Group and Founder Group, all kinds of business entities are urged to truly feel the hard constraints of market principles such as "doing business requires capital, borrowing money needs to be repaid, investment needs to bear risks, and doing bad things requires a price", thus further strengthening the awareness of practicing according to law, compliance management and prudent operation. We will continue to promote the reform of small and medium-sized banks, accelerate the reform of rural credit cooperatives with "one province and one policy", and steadily promote the reform, restructuring and risk resolution of village banks. Actively explore pilot projects for early correction of hard constraints in some provinces, and put forward a hard constraint requirement of "rectification within a time limit" for incremental high-risk banks.

Comprehensively clean up and rectify the financial order

The column pointed out that the People’s Bank of China formulated a series of regulatory systems, such as the introduction of new asset management regulations, unified regulatory standards, broke rigid payment, strengthened risk isolation, and promoted the rectification and transformation of asset management business. By the end of 2021, the transition period of new asset management regulations ended, and the chaos of nesting and idling funds was effectively curbed, and the scale of shadow banking dropped significantly. Smooth completion of the rectification of outstanding problems in the financial business of Internet platform enterprises, and shift the focus of work to normal supervision. The special rectification of Internet financial risks has achieved good results, all P2P online lending institutions have closed down, and the rectification work in the fields of Internet asset management, equity crowdfunding, Internet insurance, virtual currency trading and Internet foreign exchange trading has been basically completed. We will further promote risk remediation of local financial asset exchanges, "fake gold exchanges" and third-party wealth management companies, crack down on illegal fund-raising and resolutely curb speculation in domestic virtual currency transactions. Continue to intensify the investigation and handling of money laundering cases.

Effectively prevent and resolve risks in key areas.

The column pointed out that the People’s Bank of China made comprehensive measures from both sides of supply and demand to maintain the smooth operation of the real estate market. Keep real estate financing stable and orderly. Due to the city’s policy to implement differentiated housing credit policies, we will continue to guide the real interest rate and down payment ratio to better support rigid and improved housing demand. Take a number of measures with relevant departments to actively support local governments to steadily resolve debt risks. Guide financial institutions to negotiate with financing platforms on an equal footing according to the principles of marketization and rule of law, and adopt classified measures to resolve the risk of existing debts, strictly control incremental debts, and improve the normalized financial debt monitoring mechanism of financing platforms through extension, borrowing new ones and replacing old ones.

Build and improve the financial stability guarantee system

The column pointed out that the People’s Bank of China continued to promote the construction of financial rule of law, and the Financial Stability Law, the People’s Bank of China Law, the Commercial Bank Law and the Insurance Law were included in the legislative plan of the National People’s Congress, while the regulations on local financial supervision and management, non-bank payment institutions and foreign exchange management were included in the legislative work plan of the State Council in 2023. We will improve the framework of macro-prudential management system, establish a countercyclical capital buffer mechanism, introduce evaluation methods for systemically important banks and insurance companies, issue supervision rules and access regulations for financial holding companies, formulate a work plan for overall supervision of financial infrastructure, and constantly improve comprehensive statistics of the financial industry. Improve the deposit insurance system, and effectively play the core functions of deposit insurance, such as preventing bank runs, differential rates, early correction, and risk disposal. Accelerate the establishment of a financial stability guarantee fund, initially establish the basic framework, and have accumulated certain funds.

At present, China’s financial risks are generally convergent and controllable. At the end of the second quarter of 2023, the total assets of China’s financial institutions were 449.21 trillion yuan, of which the total assets of banking institutions were 406.25 trillion yuan, accounting for more than 90% of the assets. The banking industry occupies the dominant position, and the stability of the bank leads to financial stability. Judging from the results of the quarterly rating of banking financial institutions by the People’s Bank of China, most of the nearly 4,000 commercial banks in the second quarter of 2023 are within the safe boundary; The number of high-risk banks is only over 300, and the assets account for less than 2% of all banks. The rating of 24 large banks with assets accounting for about 70% has been excellent, and some banks’ main operating indicators are at the international leading level, which has played a key role in China’s financial system as a "ballast stone". The supervision indicators of financial institutions are in a reasonable range. By the end of the second quarter of 2023, the capital adequacy ratio, non-performing loan ratio and provision coverage ratio of commercial banks were 14.66%, 1.62% and 206.13%, respectively. The average comprehensive solvency adequacy ratio of insurance companies was 188%, and the risk coverage ratio and average capital leverage ratio of securities companies were 255.38% and 18.78%, respectively. The credit risk was at a controllable level and the loss resilience was maintained.

Firmly hold the bottom line of no systemic risk.

The column pointed out that in the next step, the People’s Bank of China will thoroughly implement the spirit of the Central Financial Work Conference and unswervingly follow the road of financial development with China characteristics. Strengthen financial supervision in an all-round way, improve macro-prudential management, strengthen the monitoring and analysis of systemic risks, shadow banking and financial technological innovation, improve the early correction mechanism with hard constraints, and realize early identification, early warning, early exposure and early disposal of risks. Strengthen the construction of financial security system, classify policies, deal with the risks of high-risk small and medium-sized financial institutions in a timely manner, effectively prevent the cross-regional, cross-market and cross-border transmission resonance of risks, and firmly hold the bottom line that systemic risks do not occur.

(CCTV reporter Dong Bin)

Many supermarkets in Britain sell spoiled turkeys at Christmas: rotten and smelly, even with green mold spots.

  Netizen basks in the green turkey (Twitter)

  Overseas Network December 27thMany large supermarkets in Britain, such as Tesco, Sembaoli and Ollie, sold spoiled turkeys during Christmas. The netizens of "Zhongzhao" collectively vomited about this, complaining that these rotten turkeys that had not expired but turned blue ruined their Christmas dinner.

  Deteriorated Turkey (Twitter)

  According to a comprehensive report by the Daily Mail and the Sun on the 26th, during the Christmas period, many netizens in Britain complained that they had bought bad turkeys, some of which were rotten and smelly, and some turkeys had green mildew spots. Most of these turkeys were bought the day before or the same day, and they did not reach the shelf life on the label. The businesses complained by netizens include Tesco, Sembaoli, Ollie and Marks & Spencer and other large British retail stores.

  Hollow Pie (Twitter)

  In addition to the spoiled turkey, other meat products sold in the store were also ridiculed. Some people bought a hollow pie that should have been filled with butter and meat, and some people ordered a turkey for six people and changed it into chicken for one person, which was filled with stuffing. The poor shopping experience provoked the "Zhaozhong" netizen to shout "Christmas dinner was ruined like this". A netizen who spent 50 pounds on a spoiled turkey said angrily, "After such a difficult year, the family wanted to have a good reunion at the end of the year, but it was ruined." (Overseas network Wang Xiaoyu)

Capello: All sports in China are great. Why not football?

Live on November 8th In an interview with titan sports, Capello, a famous Italian coach who once coached Jiangsu Suning, talked about his views on China football.

-You have coached star players like teixeira in Suning, and also coached many China players, including some international players. What’s your impression of China players?

I always had the feeling that when I saw those China players, they looked great. But when foreign aid arrived, they seemed to get worse in speed and technology. It stands to reason that with such a huge population base, supplemented by care and determination, China football should produce great stars. You are great at all sports, why not football?

A huge difference between China football and Italian football is that foreign aid can make everything different in the China League; Not in Italy.

Of course, for China football, foreign aid still plays a role: playing with better players will help you become better. Similarly, Serie A teams need to adapt to a faster pace when they play in the Champions League. Once upon a time, Italian football was at the top of the world. The root cause was that the best players played in Serie A at that time. They improved the rhythm of the whole league, so everyone played better.

-I don’t know if you remember that Min Kim Zai once played for the Super League, but it was after you left Jiangsu. Naples, where Min Kim is located, has not only performed well in the league, but also demonstrated its full dominance in the European War.

Italian football is growing. Don’t forget that we won the European Cup last year. Naples is amazing as well as surprising. This club knows how to find good players. Min Kim and Kvaratskheliya, two Serie A players, have the strength to be top stars in any league, because they have both strength and skills, are extremely focused in the game and are gifted! Don’t forget, they are still very young.

(Nanling cries and cries)

China beauty cosmetics won’t give in easily.

Title map | vision china

Three years after the epidemic, it seems that the economy and consumption have been slowly drawn out. How many people will wear full makeup when they go out now?

According to the latest data released by the National Bureau of Statistics, the total retail sales of cosmetics in March 2022 was 34.5 billion yuan, down 6.3% year-on-year, which was the first decline in two years. Waves come between the ripples, and the signs of industry change can be seen from these data.

In it, China’s beauty brand has also sung all the way to a difficult step, and after a sharp rise and fall, it has come to a difficult turning zone:The whole industry has entered a period of deep ploughing, and it is urgent to find a new growth engine after the traffic dividend disappears.

But for enterprises, the transformation under the headwind of the industry has always been a life-and-death test.

Even Yixian E-commerce, which achieved the listing myth in four years by virtue of the perfect diary of "Light of Domestic Products", has become a shackle now. If it cannot establish a higher barrier for its own products and brands, its road to rise will reach its peak.

So,The key question now is, where will the tide of the beauty industry flow? Can the perfect diaries follow the trend and be reborn, and then get the favor of capital?

The direction of the tide

Tides also have cycles. If you want to understand the challenges of domestic beauty products more deeply, maybe you can look back a little.

Around 2000, a batch of "Made in China" appeared in China’s daily chemical industry, which seems to be a big brand today: "Vitality 28", "Little Nurse" and "Ding Jiayi" … Now these forgotten names have also sprung up, even if they compete with international big brands, they have never fallen behind.

But in the end, most of them failed, and the reasons are very complicated. First, under the epidemic, beauty cosmetics, as a non-mandatory consumption, are weaker as a whole; Second, consumers are more picky and the traffic is getting more and more expensive; Third, the industry supervision policy has become stricter; Fourth, the business strategy failed to be adjusted in time, and the living space was squeezed by the acquisition of Xuecang.

But even if the market is cold, China’s beauty industry still has huge imagination:

In 2021, the Food and Drug Administration officially announced that China had become the second largest cosmetics consumption market in the world, which took only 20 years. With the increase of per capita disposable income and the improvement of consumption concept, the beauty market has not yet reached the ceiling. From the subdivision of the track, skin care products are more needed and the ceiling is higher.

If we benchmark overseas markets, the per capita consumption of cosmetics in China will be less than 50 US dollars in 2019, and the markets in Europe, America, Japan and South Korea will be 5-7 times that of ours, which shows that the demand has not been fully released. But from the perspective of competition pattern,International brands still dominate the high-end beauty market in China, while domestic products are dormant in the mass market. In the era of the rise of the national tide, there is hope to run out of domestic beauty brands that can compete with international giants in the future.

There is room for development,How do domestic beauty brands find and install the next round of growth engines?

Judging from the growth path of global beauty brands that have been deposited for a hundred years, product strength and brand strength are undoubtedly the two core competencies that can lead by far. This clearly shows that beauty brands must have strong R&D strength in order to provide products with more powerful and targeted functions.

For a time,The strategic layout of brand power and crossing cycle has become the focus of beauty industry.New domestic products have also tried the water.

For example, Yixian e-commerce has launched a triple transformation. But many years ago, "Made in China" failed to cross the threshold. Can today’s new domestic products solve it?

Fight change with change.

Let’s focus on Yixian e-commerce, a beauty brand that has reached the level of ten-year revenue of some domestic brands in three years. It develops products by integrating the world’s top supply chain, gains the recognition of users with the quality of comparable brands, and superimposes the accurate grasp of traffic dividends, so that its repurchase rate, conversion rate and positive word-of-mouth continue to rise, thus grabbing market share faster.

However, with the gradual fading of the channel dividend and the impact of the epidemic, the overall growth of the beauty industry slowed down, and Yixian e-commerce also experienced an "unwell" reaction-in 2021, it achieved an operating income of 5.84 billion yuan, an increase of 11.6% year-on-year, and the growth rate slowed down. But in fact,Yixian e-commerce is also one of the few beauty companies in the industry to achieve positive growth in performance.

When the environment is different, the market competition intensifies and the traffic platform matures gradually, and now there are fewer and fewer "traffic depressions". Compared with competing for traffic, the key element of future competition is hard power in all aspects. Therefore, beauty companies began to enter the stage of refined operation 2.0, from "impulse" to "quality improvement".

Yixian e-commerce has also opened a new model of "hematopoiesis", and the first step is the transformation of "reducing blood fat and increasing muscle".This has also brought it higher operational efficiency and improved profitability:

In 2021, the operating expenses of Yixian e-commerce totaled 5.523 billion yuan, down 8.67% year-on-year; Sales gross profit margin increased by 2.5 percentage points year-on-year to 66.8%; Net loss narrowed by 42.5% year-on-year.

butThe key is still in the second step: creating a new growth curve.

Internet gives new domestic products the opportunity to become "online celebrity", but it also reduces the possibility of them becoming "Changhong" brands. Yixian e-commerce is lucky, and Perfect Diary is its first brand to enter the mature stage; However, referring to the development history of those international beauty giants, we must establish our own multi-brand matrix to maintain lasting vitality.

The first direction of attack is definitely the new growth point of China’s beauty industry-mid-to-high-end beauty market. According to the data of Huajing Industrial Research Institute, the proportion of mid-to high-end beauty market in 2020 and 2021 was 24.8% and 26.3% respectively, and the growth rate was significantly higher than that of mass beauty market. It can be seen that the trend of consumption upgrading is also applicable to the beauty industry.

Yixian E-commerce has also laid out two high-end skin care brands, EVE LOM and French Kelanli, and achieved initial results: during the double 11 in 2021, EVE LOM sold for two hours, which exceeded the total sales of double 11 in 2020; Kelanli broke the international record of Tmall and became one of the fastest growing high-end skin care brands in 2021.

Thanks to this, Yixian e-commerce skin care sector achieved rapid growth. In 2021, the income of skin care brands grew rapidly, and GMV reached nearly 1 billion yuan, up 332% year-on-year, accounting for 14.6% of the total revenue, which has become the second growth curve.

In addition,Beauty and skin care have also set off a "component party" craze. This young people are keen to explore whether the product ingredients are scientific and pursue a healthier and more effective way to become beautiful.Yixian e-commerce also launched a targeted brand: DR.WU Darfu, who positioned the brand of "Doctor Specialized Research". As long as you have a little understanding of "brush acid" and "Early C and Late A", almost no one knows its ace single product almond acid essence; Everyone’s yearning for eggshell muscle also helped it become the first acid product of Tmall double 11.

Yixian E-commerce also independently hatched the skin care brand Wanzi Xinxuan and launched the independent beauty brand Pink Bear, thus building a matrix with eight brands, including Perfect Diary, Little Odin, Wanzi Xinxuan, Galénic French Colanli, DR.WU (Chinese mainland business), EVE LOM, Pikoan and Yi ‘an State, and initially forming a coverage of all categories and full price bands.

If the brand matrix is still an iceberg on the water, then talents, R&D and infrastructure are huge bases under the water.

Judging from the 2021 annual report of Yixian E-commerce, it is actively investing in these "three major assets".

In terms of research and development, Yixian e-commerce invested 142 million yuan in real money in 2021, up 113.6% year-on-year, and the R&D expense ratio reached 2.43%; Its R&D investment level has been in the first echelon of domestic beauty listed companies. Up to now, Yixian e-commerce has 118 patents worldwide, and the number of patents has increased by 71% year-on-year, including 39 invention patents (some of which are in the process of transfer).

Yixian e-commerce also actively uses external forces to integrate global resources through Open Lab open R&D system.Its cooperation not only includes well-known research institutions at home and abroad, such as the Institute of Chemistry of the Chinese Academy of Sciences, the National Nano-drug Engineering Technology Research Center of Huazhong University of Science and Technology, and the 3D Skin Research Institute of the University of Lyon, France; It also includes related upstream and downstream, such as Shanghai Ruijin Hospital, Kosmeishi, Yingteli, etc., in order to jointly solve the problem of beauty research.

It can be seen that Yixian e-commerce turned"technical beauty cosmetics"With great determination, it also has enough liquidity and flexibility to achieve strategic goals (by the end of 2021, its book capital totaled 3.14 billion yuan); It’s just that this return may be nonlinear, but can today’s capital market be patient?

Enter a new value cycle

Yixian e-commerce used to be the "darling of capital", whether it was multiple rounds of financing in the process of growth, or ultra-fast completion of listing, or the market value soared from 100 million US dollars to 16 billion US dollars in February 2021.

However, after that, influenced by the double factors of the inner ring, the performance of Yixian e-commerce capital market is hardly optimistic, and its share price has seriously deviated from its intrinsic value.

External factors include the end of the channel dividend period, the constant pressure on the share price of the beauty sector caused by repeated epidemics, and the constant turmoil of the China Stock Exchange policy and the valuation killing caused by geopolitical conflicts. Internal factors mainly mean that Yixian e-commerce is in a strategic transition period, and now it focuses more on reducing costs and increasing efficiency and realizing profitability. These measures will also make sales fluctuate within a certain period of time.

For this reason, Yixian E-commerce received a delisting warning from new york Stock Exchange. Although this is a normal regulatory risk warning of NYSE, it does not mean that the enterprise is in the delisting stage, and Yixian E-commerce can completely raise its share price by means of repurchase and "share reduction" in the next six months to avoid delisting risk, but in the end, it depends on the effectiveness of its transformation to regain the favor of the capital market.

However, there is no precedent for the reversal of difficulties in China Stock Exchange.

Weilai, one of the top three domestic new electric forces, once fell to the red line of delisting in 2019, but by the end of the year, Weilai’s sales had grown against the trend and won the sales champion of new car-making forces for two consecutive months.The core is inseparable from the user’s belief in its product strength.

Inconvenient charging and long charging time are another obstacle to the use of electric vehicles after the anxiety of continuing navigation and battery safety problems. However, Weilai’s power exchange mode has solved the pain points in the market and brought confidence to electric vehicle users.

Many car owners have great expectations for the popularity of Weilai 100-degree battery and power exchange station. In their eyes, Weilai can solve the problem of users’ energy replenishment, at least at high speed, without considering the problem of running without electricity.

It is because of product strength that word-of-mouth comes out of the circle that Weilai’s sales can return to the growth track (Q4 still delivered more than 8,000 vehicles in 2019).

Visible,Product strength and brand strength are the basis for these new domestic products to enhance their fundamental performance and ultimately faithful wife.

This is also what Yixian e-commerce is practicing.

From the perspective of pure capital market, for beauty companies, the driving force of valuation switching usually comes from the continuous growth of existing brands, the marginal contribution of new brands, and the β -type development opportunities brought about by the tightening of supervision, accelerating the clearing of small and medium-sized enterprises, channel change and the rise of national tide.

What can be expected is that research institutions generally predict that the growth rate of cosmetics industry will show a trend of low before and high after this year, and the industry beta market is expected to be realized in the second half of the year; In the long run, the cosmetics industry is still a good track for "long slopes and thick snow". In the end, the new local beauty forces with strong brand matrix and group development potential will have greater investment value.

It is easy to break the circle, but difficult to grow red. Only by doing difficult and valuable things can perfect diaries truly usher in the next golden five years.