Business Model Analysis
Perfect Diary is a digital-first, China-based beauty disruptor that reached unicorn status in just 3 years. We analyze the company's funding, business model, customer acquisition strategy, market size, and competitors.
Perfect Diary is a China-based makeup brand popular among Generation Z consumers in China.
In the midst of the Covid-19 pandemic, the company raised $100M in funding and doubled its valuation to $2B. This financing highlights the appeal of value-based brands with strong e-commerce capabilities, especially when CPG businesses globally are re-assessing distribution strategies to cater to the shopping and spending habits of younger, digital-first consumers, as well as to weather virus outbreaks that cast a shadow on physical retail.
Even before the pandemic, Perfect Diary was gaining significant traction with Chinese consumers. On Singles Day 2019, one of the most important annual e-commerce days in China, Perfect Diary was a top 10 beauty brand on Tmall, an Alibaba-owned B2C retail marketplace and the 3rd-most visited website in the world. The company’s sales that day surpassed $100M yuan ($14M USD).
Since launching in 2016, the company has become one of the most talked-about beauty brands in the country, competing with well-known global players like L’Oreal and Estee Lauder, even while offering its products at a mass-market price point.
Going forward, the company aims to strengthen its position through strategic online tactics, brand development, and innovative R&D strategy on par with industry leaders.