Not long ago, the brand service provider Lily & Beauty released its annual performance report for 2023. The report shows that Lily & Beauty achieved a revenue of 2.762 billion yuan in 2023, with a non-GAAP net profit of 30 million yuan, turning losses into profits. Among them, Lily & Beauty’s own-brand revenue grew by over 40% overall, becoming a significant driving force behind the company’s performance growth.
CHAILEEDO has learned that over the past two years, Lily & Beauty has successively launched its own brands such as Jadeauty. Among them, Jadeauty has emerged as a “dark horse” and successfully made its way into the best-selling lists on platforms such as Tmall and Douyin.
In the increasingly competitive beauty arena, what makes Jadeauty stand out?
Complete the final piece of the puzzle for sensitive skincare targeting emotional sensitivity
Against the backdrop of heightened uncertainty in the post-pandemic era, more people are embracing the concept of “living in the moment,” with emotional satisfaction becoming a new essential in consumer behavior.
However, at the same time, individuals are facing pressure from various aspects of life including work, study, and emotions, making emotional stress a commonly used term in modern society.
Phrases like “aging drastically after a year of work” and “not working is the best beauty treatment for the working class” are ubiquitous on social platforms such as Xiaohongshu. In 2022, a study published by Aging, a leading American journal focused on aging research, pointed out that negative emotions such as loneliness, fear, and depression can age an individual by nearly 20 months (1.65 years) physiologically, significantly accelerating the aging process, which is 32% more harmful than smoking.
With these factors in mind, as consumers’ pursuit of beauty continues to evolve, there is an increasing focus on how makeup and skincare can combat stress and anxiety. Today, emotional skincare is gradually becoming one of the important considerations for consumers in their skincare choices, especially among young consumer groups who prefer skincare products that can relieve daily stress and provide emotional healing.
Lily & Beauty’s Jadeauty brand has long recognized the high demand for emotional well-being among Chinese consumers and the significance of emotions in female skincare.
CHAILEEDO has learned that in 2021, at the inception of the Jadeauty brand, herbal plants were its core focus, targeting skincare repair for sensitive skin. After two years of steady market presence, Jadeauty conducted extensive market research and found that negative emotions can lead to an increase in cortisol levels, which is a significant factor exacerbating skin sensitivity, accelerating skin dullness, and aging. Furthermore, prolonged emotional stress has led to a common phenomenon known as “liver stagnation” facial features, characterized by yellowish complexion, wrinkles and spots around the eyes, and under-eye bags.
However, conventional cosmetics, particularly those from Europe and the United States, rarely address skin sensitivity issues caused by emotions.
Therefore, in 2023, Jadeauty underwent a brand reshaping and became the first skincare brand in China to focus on emotional sensitivity. It emphasized achieving efficient anti-aging and brightening effects based on a safe new route of repair. Additionally, the Jadeauty research team delved deeply into fundamental skin issues and proposed a new Chinese skincare concept of “simultaneous repair of the mind and skin for faster and more effective results,” providing precise and effective solutions for individuals experiencing “emotional skin” issues.
From a market perspective, over the past year, with consumers expressing demand but no brand fulfilling it, Jadeauty accurately positioned itself and studied the mechanism of the saffron extract on cortisol, the hormone responsible for emotional sensitivity to the skin. This provided more solutions for emotional skincare and successfully launched several star products such as saffron essence oil, dual-phase essence, and oil-infused masks. Data shows that since the launch of Jadeauty’s saffron essence oil in September 2023, sales have increased by over 200% in just three months compared to the 618 promotion period, and it has appeared on several best-selling lists across various platforms.
New products, new channels, new marketing: Jadeauty’s comprehensive upgrade
To expand the possibilities in the field of emotional skincare, starting in 2024, Jadeauty has initiated a comprehensive upgrade from brand positioning to channel development.
Firstly, in terms of the brand, product development remains the core driver of whether a brand can stand the test of time in the market. CHAILEEDO understands that in the past few years, Jadeauty has focused on innovation as its core driving force, not only emphasizing the effectiveness and safety of its products but also providing targeted skincare solutions through in-depth research on the intrinsic connection between emotions and skin health.
For example, one of Jadeauty’s representative ingredients is saffron. Research has shown that saffron can inhibit the gene expression of enzymes related to cortisol synthesis, thereby affecting cortisol synthesis in the skin. Cell experiments have demonstrated that saffron can down-regulate the gene expression of 11βHSD1, with a down-regulation rate of 78%. Additionally, saffron can also enhance the respiratory rate of cells and mitochondria, increase ATP (adenosine triphosphate, the most direct energy source in organisms) in basic cells and mitochondria, “charge” cells, and achieve the effects of repair, antioxidation, and anti-aging.
However, the efficacy of a single ingredient on the skin has certain limitations. Therefore, after investigating the pros and cons of essential oil products on the market, Jadeauty discovered the significant roles of borage oil and white chia seed oil in skin anti-aging and antioxidation.
Jadeauty research found that borage oil, known as “plant retinol,” contains phytic acid in its extract, which can activate retinoid X receptors (RXRs) in the skin, stimulate cell signals, and, as a plant-derived component, its irritancy is lower than retinol, achieving both safety and effectiveness. White chia seed oil contains over 98% long-chain fatty acids with antioxidative properties, making it one of the most stable plant oils in the world. Its unique molecular structure, unmatched by other natural plant oils, offers oxidative stability more than ten times that of jojoba oil. White chia seed oil, when combined with VC-IP, effectively fights oxidation and brightens the complexion, addressing “dullness” at its root.
Secondly, the refinement of the product matrix is crucial. As mentioned earlier, with the successful launch of star products such as saffron essence oil and the enthusiastic response from the market, Jadeauty has successfully captured consumers’ desire for high-quality skincare experiences, establishing a deep emotional connection with consumers and laying a solid foundation for the brand’s continued development in the field of emotional skincare.
It is understood that in 2024, there was a comprehensive expansion of the product matrix, involving new categories such as face creams, lotions, and lipsticks, strengthening the brand’s diversified supply in the market.
In terms of distribution channels, earlier this year, Jadeauty officially debuted at Joyce Beauty, a high-end beauty and skincare boutique located in Shanghai’s Jing’an Kerry Center. Through Joyce Beauty’s offline space, Jadeauty has established multiple connections with consumers, meeting their diverse consumption experiences and needs and further conveying the brand image and values of Jadeauty. It is reported that in the future, Jadeauty will continue to expand into new high-end beauty channels such as Lane Crawford, bringing more high-quality skincare products to a wider range of consumers.
Furthermore, to cultivate a deep emotional connection with consumers, Jadeauty has implemented various marketing strategies. Jadeauty sponsored the U8 World Innovation Summit and invited Maye Musk to attend the event, demonstrating a commitment to women’s growth and conveying the brand’s core values. During the “38 Shopping Festival” in 2024, Jadeauty collaborated with the official Xiaohongshu platform for the “Everyone’s Spring Festival” campaign. Additionally, partnerships with celebrities such as Ines De La Fressange, Karena Lam, and Yan Wang garnered significant attention from consumers and the market.
Data shows that Jadeauty’s star product, saffron essence oil, achieved over one million GMV within just 30 days on the Xiaohongshu platform, with brand exposure reaching 5 million, swiftly establishing itself as a leader in the skincare oil segment.
It is evident that through continuous innovation, product category expansion, and channel diversification, Jadeauty is undoubtedly deepening its influence in the emotional skincare field, meeting broader consumer demands, and driving market expansion in the emotional skincare sector, leading the industry towards a more humanized and segmented development.
Lily & Beauty, breaking through for the second time!
From the various aspects mentioned above, it’s evident that this comprehensive brand upgrade by Jadeauty goes beyond product development. Through activities such as sponsoring major events, collaborating with high-end boutiques, and engaging in social media marketing, Jadeauty not only enhances its brand image but also establishes deep connections with consumers while expanding sales channels to empower business growth.
In addition to topping various best-selling lists on major platforms, Jadeauty’s brand strength and product quality have also been repeatedly recognized. In just the first quarter of this year, Jadeauty has won several awards, including DMAA’s Annual Best New Chinese Skincare Brand and TBI’s Annual Most Content-Powered Brand.
From consumer recognition to industry acknowledgment, this upward trajectory undoubtedly propels Jadeauty into a broader horizon.
In fact, as a leading brand service provider in China, Lily & Beauty has been deeply rooted in the Chinese consumer market for over a decade. Through collaborations with numerous brands, Lily & Beauty has successfully developed a mature logic for brand shaping. Its experience in distributing various categories, price segments, and efficacy products, coupled with its ability to understand and swiftly respond to the demands of Chinese consumers, is a significant advantage for Lily & Beauty in developing its own brands.
The rise of a new brand requires multidimensional capabilities such as product strength, distribution channels, and brand positioning. It’s crucial to leverage creativity in product development, insights into user-brand relationships, and the power of content to establish a firm foothold in the market, unearth core values and consistently surprise consumers. This is the key determinant of a brand’s long-term success.
The success story of Jadeauty, from its inception to its rejuvenation, once again proves Lily & Beauty’s meticulous operational management, cost reduction, efficiency enhancement, and the ability to create explosive products during the incubation process of new brands. This will continue to drive high-quality growth in overall performance and consolidate market competitiveness.
Entrepreneurship knows no boundaries, but only through continuous evolution can one thrive. As a leading cosmetics e-commerce service provider in China, Lily & Beauty (605136. SH) can capitalize on its brand operation experience in the Chinese market. By dynamically adjusting brand development strategies according to market trends, it is poised to drive the overall business upward.
