For Yi Xian e-commerce, its perfect diary makeup this rely on "channel dividend" net celebrity brand, a dividend retreat, rising costs, income is sharply down. It's better to be smaller and a profitable company than to be bigger and not make money.

Recently, Perfect Diary's parent company Yixian E-commerce released its 2022 quarterly report and annual performance. According to the financial report, the company's revenue in the fourth quarter of 2022 was 1 billion yuan, and the annual revenue was 3.7 billion yuan, both down more than 30% year-on-year. The company's outlook for the first quarter of 2023 sees revenue falling another 20% to 30%. Still not out of the mire.

In June 2019, Perfect Diary ranked second among the "most favorite domestic brands of post-00s" on Tmall. In that year's Singles' Day shopping festival, Perfect Diary became the first Chinese brand to top the cosmetics list on Tmall since its establishment 11 years ago. But the sales figures for the 2022 Singles' Day were not announced to much fanfare.

For perfect diary and Yi Xian e-commerce, review the past development process, what are the enlightenment?

Perfect diary from the birth to the present, called "network red brand" more appropriate. When the company was founded, it planted grass on various social media. At that time, Perfect Diary did grab the "channel dividend", because there were not many big companies and brands in these channels. But today, both Douyin and XiaoHongshu are the "standard" of each company's marketing, and there is no "depression" or "gap".

However, Perfect Diary, an online celebrity brand that relies on "channel dividend", saw its costs rise immediately and its income decline sharply once the dividend was withdrawn.

For the founders, executives and employees of Perfect Diary, the company went public and did not make a lot of money. Because the stock price is down 90%. Looking back, makeup is not a very good industry, although the gross profit margin is high, but the marketing and sales expenses are also high. Excluding these costs, profit margins are typically in single digits. On the contrary, the larger the scale, the more severe the loss. The Perfect Diary is a case in point.

For perfect diary and Yi Xian e-commerce, standing in a rational and objective point of view, the best plan may be not listed. If founders had to do it all over again, it might be better to stay small and make money.