YipitData correctly calls for Proya’s online sales growth in 3Q22

Background

Proya has shown strong growth this year despite weak consumer demand. As online channels make up the essential sales strategy for the brand, investors came to YipitData to get a comprehensive view of Proya’s performance across several major e-commerce platforms in China. 

By working with us, investors are able to track the GMV growth of top categories and brands selling on China e-commerce platforms. By understanding the market share shifts for brands and companies, as well as the competitive landscape of various categories, they are able to better inform their investment decisions.

Key Questions We Answer

  • What are the key drivers for Proya’s strong growth despite the lukewarm growth in the beauty sector? 

  • How did Proya perform by brand portfolio? 

  • How did different online channels contribute to Proya’s online sales? 

Our Approach

Over 60% of total beauty products are sold through e-commerce platforms in China. Proya’s online penetration rate is much higher than the industry average. As of H1 2022, online channels make up 88% of Proya’s total sales. With comprehensive coverage of China’s mainstream online consumer platforms including Tmall, JD.com, Douyin, and Kuaishou, we are able to accurately track Proya’s brand portfolio, online channel sales share, and popular SKU products.

The Results

Ahead of 1H22 earnings, we estimated that Proya’s online GMV would grow 57% Y/Y. When results were announced, our 1H GMV estimate was proven to be accurate (company reported ~50% Y/Y). In 3Q22, we observed that Proya's online Y/Y growth rate was 40%, which was again consistent with the company's reported revenue growth rate of 36%..

Our highly granular data also allows us to accurately track the brand’s portfolio growth and online channel share: 

  • Brand portfolio: In addition to the main brand Proya, the share and growth rate of Timage and Hapsode have both increased significantly:

    • Timage: 3Q22 RMB90m GMV (15% of total) on Tmall with 66% Y/Y; 3Q22 RMB54m GMV on Douyin

    • Hapsode: 3Q22 RMB24m GMV (4% of total) on Tmall with 270% Y/Y;  3Q22 RMB31m GMV on Douyin

  • Online channels: The sales volume on Douyin has increased rapidly, as we observed Douyin contributed 27% of its online sales in 3Q 2022, 8pp higher than 2Q. The brand has heavily relied on its live-streaming on Douyin, and has opened two new stores selling star products with higher unit cart value.

Proya online sales GMV market share trends

Source: Web scraped data

About China Brands Cross-Platform Analysis

Built upon our existing products Tmall Brands, JD Brands, Douyin Brands and Kuaishou Brands, the China Brands Cross-Platform Analysis provides investors with key insights into the performance of top brands, companies and categories, to help investors better understand the competitive landscape and market share dynamics in a bigger Chinese e-commerce space.

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