- The following is a performance of Top 30 brands that report an annual revenue of over 100 billion won(0.6 billion yuan) on Tmall/Taobao platform.
- As of August 2019, out of 31 brands that reported 12 month cumulative revenue of 100 billion won(0.6 billion yuan), 12 were local. Local brands’ presence in the top rankings has now become a ‘new norm.’ Considering the absolute value of revenue and its growth rate of this year, more than 12 local brands are expected to exceed the annual revenue of 100 billion won(less seasonality).
- The list of brands that are expected to beat 100 billion won revenue is as follows: Perfect Diary, wis, CHANDO, PECHOIN, PROYA, CHIOTURE, HomeFacialPro, Meiking, CARSLAN, Winona, Lucenbase, ZEESEA. Meanwhile, brands that were not able to exceed 100 billion for the past 12 months but are expected to go over 100 billion this year are Winona and Lucenbase.
Winona: picky on cosmetics, stable on growth
- Winona was founded in 2010 as a cosmetics brand focusing on sensitive skin. Its cumulative revenue for the past 12 months is close to 0.6 billion yuan, and its revenue for this January to August is 0.5 billion yuan. Now the market expects the brand to record 0.7 billion yuan this year.
- Until February 2019, monthly sales was around 22 million yuan. The number reached 50 on March, and with the huge success of 618 event, the revenue of June jumped to 150 million. If Winona manages to keep its current level of sales through September to December, it will be able to beat 0.7 billion annual sales without the help of 11.11; if it succeed to sell tremendous amount like it did during 618 this November, we can expect 0.8 billion(130 billion won).
- During the period between this March and August, the brand was successful in establishing itself as a product group aimed at sensitive skin. Its cream, essence, skincare products together with facial masks swept the market and led the brand’s growth.
- Sales volume shows steady and constant growth. Unlike some brands that gained sudden popularity, Winona had a strong steady seller that provided momentum for supported growth.
- The brand achieved a monthly sales of 150 million yuan this June thanks to a growth in sales in categories such as essence and facial masks, which were not exactly considered a strong sector. This provided an optimistic view on growth potential as the brand expands in other areas. The brand, which is entering 9th year since its establishment this year, is expected to reach 100 billion won(0.6 billion yuan) in annual sales and continue growing.
Lucenbase: 100 billion in 11 years
- Lucenbase produces cosmetics based on naturally fermented hyaluronic acid. Its cumulative sales until August this year is 0.4 billion yuan, and if the monthly sales trend continues into the end of the year we expect the annual revenue to reach 100 billion won(0.6 billion yuan) without the help of 11.11.
- Founded in 2008, the brand has been gaining strength in the local market for the past decade. Some of Lucenbase’s most loved products include base makeup products and BB creams, which best capture its key technology in hyaluronic acid. Two products have been maintaining monthly sales volume of 80-90 thousand units, acting as a strong steady seller.
- Growth momentum of this year is in its skincare category. Its hyaluronic skincare set has been selling 10 thousand more than previous months since this April, and they sold 90 thousand units this August.
- Lucenbase mainly competes in mass market, with its skincare set product sold at 193 yuan and its base and bb cream at 70. On the official website and social media, the brand is introduced as a skincare and makeup for students, and is widely loved by young generation.
- The brand, which is in its 11th year into business, is expected to reach 100 billion won of sales this year.
100 billion built on steadiness
- One common feature of these two brands is that their monthly revenue is on a steady rise. They both have a steady seller that contributes to increasing monthly sales volume, which led them to reach 100 billion won. Since their success was not dependent on pure luck, we expect them to show more progress.