Xiaohongshu Invested its First Clean Beauty Brand “Dewy Lab”

Chinese clean beauty brand “Dewy Lab” completed a Pre-A round of funding nearly $10 million led by China Growth Capital and followed by Xiaohongshu.

Chinese clean beauty brand “Dewy Lab” announced the completion of a $10 million Pre-A round of funding led by China Growth Capital and followed by Xiaohongshu. Since its product have been launched in January 2021, three rounds of funding have been completed in one year. This is the first cosmetic brand invested by China’s social platform Xiaohongshu.

According to the official data provided, the product of Dewy Lab monthly sales reached $791,000 in six months after the launch of its self-operated channels. Its sales in the promotion of November 2021 exceeded $1,582,000 and continued to grow to exceed $1,582,000 in December. It has now formed matrices of three major single products including foundation cream, concealer and loose powder. Its sales of each product exceeded $316,400 in November. The main customers are women aged from 25 to 35. The unit price per customer achieved more than 200 yuan (about more than $31.64). Founder Amber said the company has financial health and its profitability has been proven.

According to public information, “Dewy Lab” was awarded the 2021 Potential New Brand Award of Chinese e-commerce platform Tmall, the 2021 New Beauty Trend of Chinese short video platform TikTok and the 2021 “Blogger’s Choice” Will Future Brand Award of Chinese social platform Xiaohongshu. Its major product, Morning Dew Cream Foundation, won the 2021  Breakthrough Beauty Award in ELLE Beauty Star of Annual Beauty Star – “Award of Clean Beauty Leadership”.

The core team of Dewy Lab is from Cambridge University, University of Pennsylvania and Nanyang Technological University and their main research interests are in pharmacology, biology and chemistry, which are closely related to makeup formulations and raw materials. Since its founding, Dewy Lab has been working with a team of its scientists and industry experts to develop a commonly accepted standard for clean beauty. It is committed to redefining the category with products that are clearly technological in nature and strive to become a top brand in its category. In order to fundamentally improve the efficiency of product development, “Dewy Lab” is opening up the chain of “industry, academia and research” to achieve the innovative integration of scientific and technological resources. From the basic research and development of clean beauty ingredients and cross-field technology application to the development of clean beauty formulation system driven by cosmetic formulation engineers and the verification of product efficacy, “Dewy Lab” expects to play the role of its product for customers to enhance the core competitiveness of products.

From the standard definition of “clean beauty” to the breakthrough of product development technology and the development of brand strategy, “Dewy Lab” emphasizes the synergy of the product team, content team and marketing team, and uses systematic thinking to build the core barriers of the brand.

In terms of marketing, “Dewy Lab” emphasizes on the content output in Xiaohongshu and TikTok. Amber said that Xiaohongshu is perfect for brand word-of-mouth because it creates a positive psychological experience with a “promotional mechanism” while the short videos on TikTok are very expressive and sensational, which can reflect the characteristics of the clean beauty category. The brand has the opportunity to gain more potential users.

In addition, according to the team, the brand will use the right opportunity to upgrade the brand. On the other hand, it will set up a joint research and development center of clean beauty with a C9 university to further enhance product power.



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