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Lily & Beauty, Operator Queen in E-Commerce, Got Approval for her IPO

2020.06.09 CoStone Capital Views:


Lily & Beauty is the largest one-stop online retailer of beauty products in China and the world’s largest provider of online counters for cosmetic brands. 



On June 4, Lily & Beauty, a CoStone portfolio company, was approved by CSRC to be enlisted.


Lily & Beauty is the largest one-stop online retailer of beauty products in China and the world’s largest provider of online counters for cosmetic brands. 


The company is an authorized agency and partner of international top cosmetics groups, such as Kanebo, AmorePacific, Henkel, more than 60 renowned world brands including Erno Laszlo, Whoo, Freeplus, Sulwhasoo, Avene and Schwarzkopf to sell their products in China via flagship stores on Tmall, a popular online retail platform. 


Each flagship store is equipped with a professional operation team to develop science-based plans for procurement and marketing. In addition, product layout, visual design, big data analysis, targeted advertisement injecting, CRM, pre-and-post sales services, warehouses, and logistics, regular promotion and new product marketing are all among the team’s responsibilities.


Lily Beauty has a profound talent pool. Their C-level executives are professional, experienced, and stable.



From 2016 to 2018, the company’s operating income registered 2.02bn, 3.42bn, and 3.61bn RMB with net profits of 81mn, 227mn, 252mn RMB respectively. The annual compound growth rates of the operating income and net profits were 33.9% and 76.4%.


According to IResearch, the online market of brands reached 161.34bn RMB in 2018 from 2011’s 5.9bn RMB with a compound growth rate of 60.42%. It is expected to reach 347.36bn RMB in 2021.


Upgraded consumption and expanding middle class in China boost the investment in one’s appearance. Correspondingly, the demand for cosmetics, especially middle-high end cosmetics are on the rise, especially when sold online. The online trading volume of cosmetics and personal care has reached 84.25bn RMB, occupying 23.3%, twice that five years ago.


Lily & Beauty is also exploring cosmetic brands with development potential. By partnering with these brands, the company hopes to boost its sales and image via professional online marketing. Also, Lily & Beauty attempts to cooperate with brands beyond cosmetics to become a comprehensive e-commerce agency.


Lily & Beauty owns a bright future.


Rewritten by Chen Cong, Edited by Li Yunzhen, Du Zhixin


The year 2019 marks the fortieth anniversary of China’s Reform &Opening-Up, once again, we meet at the turning point of history. What’s the next step for the game, is there any clear guidance? The answer is affirmative.

Our country is enjoying a good momentum of development, which does not come from the Washington Consensus nor the Beijing Consensus. China’s experience has proved that both the visible hand and the invisible hand are crucial: the visible hand, stands for the government-led reform, and would yield benefits for reform and opening up; the invisible hand, stands for the Marginal Power represented by the private sector, and would improve economic efficiency and tax collection, create jobs and employment opportunities.

Provided that we want to protect and expand the benefits form reform, three simple but mandatory agreements are to be made and followed: No.1 Private ownership must be recognized, protected and treated equally with public ownership constitutionally, both ownerships are scared and inviolable;No.2 Make further clarification of the principal position of market economy, “deepen economic system reform by centering on the decisive role of the market in allocating resources”, as President Xi addressed in the third Plenary Session of the 18th CPC Central Committee;No.3 Implement the guiding principles of “comprehensively promoting law-based governance” of the fourth plenum. The rule of law is essential for economic growth, irreplaceable to protect private ownership, and necessary to encourage innovation and entrepreneurship.

Above are three rules for us to avoid falling into the Middle-income Trap. Assuming that we are breaking systematic barriers to private enterprises’ participation in market economy, and boosting innovation and entrepreneurship of our society, then we are heading towards a promoting direction. We are marching in the path of light, regardless of the ups and downs of Sino-US relationship, the drop in GDP growth rate, or the monetary policy.

These principals also apply on knowing how better to run a business: don’t be hedged by rules and regulations at the beginning, pay more attention to your survival, and you’ll learn more when you start your second business.

For many years, Huawei has been the only Chinese company on the list of the Top 50 R&D Spenders. Regardless of the economy and its income, what Huawei has been doing is investing in its future, dedicated to R&D, continuously and resolutely. This provisional work underscores Huawei’s accomplishments, making Huawei anindustry leader.

So, there are standard answers on how to run a company,which could be summarized as concentration and professional dedication, continuous investment on innovation and trying harder in R&D. Entrepreneurship is also important, every single company needs entrepreneurs to push aside all obstacles and difficulties, to implement strategies and ideas. We, as investors, are destined to look for such outstanding entrepreneurs and their companies, invest in them and partner with them.

At this key point of history, a country, a company, or asingle individual, will all need to find the right path. Four decades after the Reform and Opening-up, it’s time to learn from our experience and stop “wadding across


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