Previously, a user conducted an in-depth analysis of Huaxi Bio, detailing its business model and revealing its consumer-centric strategy. This strategy progresses from low-frequency to high-frequency consumption, from high-barrier to low-barrier entry, and from medical aesthetics to food products. Essentially,it reaches consumers' minds through different tiers of productscontinuously building familiarity and recognition of Huaxi Bio's brands.

The frequent occurrence of various skin problems, such as sensitive skin, has led consumers to focus on the active and effective ingredients in skincare products, giving rise to the "ingredient-focused" consumer group. The rise of this trend is a significant catalyst for the potential of the effective skincare market.

Entering the rapidly growing market of effective skincare products is Huaxi Bio's most important and successful strategy.Effective skincare products fall between ordinary skincare products and dermatological drugs. They utilize active ingredients to repair the skin barrier and address specific skin problems. They precisely match user needs by addressing issues such as hydration, redness reduction, acne treatment, whitening, anti-aging, and sun protection,meeting market demand and showcasing Huaxi Bio's strengths.

According to Frost & Sullivan, the Chinese market for effective skincare, including effective cosmetics and medical dressings, reached56.7 billion yuan in 2021，with a growth rate of 33.6%and is expected to maintain growth exceeding 30%. This shows that effective skincare maintains rapid growth, with significant market potential.

Huaxi Bio Establishes Foothold in Effective Skincare Market

Brand Matrix Takes Shape

Effective skincare has become the core growth driver for Huaxi Bio. Its financial reports show that in 2021, Huaxi Bio's skincare achievements were3.319 billion yuan, a year-on-year increase of 147%with a compound annual growth rate of 129% over three years,and revenue of 2.127 billion yuan in the first half of 2022, a year-on-year increase of 72%accounting for73%。

As of today, Huaxi Bio has not yet released its 2022 annual report. Therefore, based on its functional skincare contribution share in recent years, the user predicts thatthe effective skincare market will reach 4.62 billion yuan in 2022. In terms of growth rate, Huaxi Bio's functional skincare growth ratehas significantly slowedand is no longer the same percentage growth as before. However, from a growth perspective, Huaxi Bio is indeed creating a new miracle, achieving a scale of nearly 10 billion yuan in just four years, which is truly astonishing.

Since 2012, it has established RUNBAIYAN, a brand mainly featuring hyaluronic acid ampoules; in 2014, it established KUADI, a brand positioned for "anti-aging"; in 2018, it established MIBEIER, a brand focusing on "sensitive skin repair", and BM Jihuo, a brand positioned for "fermentation + control". The staggered key labels of the four brands build a solid brand matrix system.

Currently, all four brands maintain surprisingly high growth: RUNBAIYAN reached 1.23 billion yuan in 2021 and 645 million yuan in the first half of 2022; KUADI reached 980 million yuan in 2021 and 603 million yuan in the first half of 2022; MIBEIER reached 420 million yuan in 2021 and 260 million yuan in the first half of 2022; and JIHUO reached 435 million yuan in 2021 and 485 million yuan in the first half of 2022.

Huaxi Bio's quick report estimates thatRUNBAIYAN and KUADI are expected to exceed 1 billion yuan in 2022 and maintain high double-digit growth; BM JIHUO will continue its doubling growth trend and is expected to reach 1 billion yuan in 2022; MIBEIER will also maintain high double-digit growth, with an estimated size of 500 million to 1 billion yuan in 2022. From the user's prediction model,KUADI will catch up with RUNBAIYANwith their sizes becoming similar, and the biggest dark horse this year isBM JIHUO, which contributed the highest growth momentum.

To further explore the two high-growth brands of RUNBAIYAN, the user has launchedthe "2023 RUNBAIYAN VS KUADI Brand In-depth Insight Report"，Deeply analyzes the brand growth password.

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Users say that it will conduct a comparative analysis of Runbaiyan and Kuadi from four core dimensions: Brand, Product, Marketing, and User.

Brand Positioning

Differentiation Strategy, Building Different Echelons

Huaxi Bio's functional skincare brand matrix is becoming increasingly complete. Each brand has a differentiated positioning, targeting different ages, genders, and skincare methods, especially targeting different user groups, covering "sensitive skin", "light mature skin", "ingredient party", etc., grasping their respective rigid needs and pain points, and building a scientific formula and product system with functional orientation. Among them, Runbaiyan, Kuadi, BM Muscle Active, and Mibeier, as Huaxi Bio's four functional skincare brands, implement differentiated positioning.

Runbaiyan relies on Huaxi Bio's more than 20 years of scientific research strength in hyaluronic acid, carefully creating"Intelligent Hyaluronic Acid"A new way of skincare, usingHA+Bio-active Skin Technology，Providing differentiated solutions for skin problems.
 

As Huaxi Bio's core strategic Brand, Runbaiyan's business covers two major business segments: medical beauty and functional skincare products. In terms of brand positioning, it provides tiered care for different skin problems and provides precise skin solutions for target customers.

Since Runbaiyan officially expanded its skincare products in 2016，Officially transitioned from a To B model to a To C model,It created billions of yuan in achievements in less than two years. In December 2018, Runbaiyan ushered in its high-profile moment because the #Runbaiyan x Forbidden City Lipstick# jointly launched the Forbidden City customized product event became popular, and the lipstick's appearance and ingredients pushed it to the forefront. After that, it began to cooperate with stars and key opinion leaders, further bringing the brand story to the public.

Kuadi is a high-end brand under Huaxi Bio that is committed to anti-aging. It is positioned as a "hardcore anti-aging master", focusing on the anti-aging market, and using advanced compounding around the core ingredient 5D hyaluronic acid and core technology CT50.

Kuadi is positioned as a mid-to-high-end brand. In terms of brand communication, it is more closely linked to technology. For example, it also goes all out in ingredient development, such as the exclusive development of the core anti-aging formula CT50 core light-age factor, which is composed of its proprietary ingredients ergothioneine, ECTOIN, and dozens of amino acids, vitamins, and 50 other trace elements most needed by the human body.

Product Strategy

Patented Core Ingredients, Explosive Single Products

Runbaiyan hyaluronic acid ampoule essence is based on Huaxi Bio'sPatented ingredient "honeycomb structured hyaluronic acid"As the basic raw material, throughLarge, small, and mini molecules (miniHA®) hyaluronic acidCombination, allowing hyaluronic acid of different sizes to be precisely positioned and act on different layers of the skin to exert their effects. Mini-molecule hyaluronic acidOpens the skin absorption channel，Reaching the dermis, locking in water at the root; small molecules for epidermal cellsRapidly replenish moisture，Refining the skin; large-molecule hyaluronic acid on the skin surfaceForm a "protective film"，Reducing skin moisture evaporation.

From the formula and technology, we can see that Runbaiyan is constantly raising the threshold of its products: In 2014, as the first generation of hyaluronic acid moisturizing ampoule essenceCreated the "ampoule essence"New product category; In 2018, Runbaiyan's second-generation hyaluronic acid moisturizing ampoule essence evolved into"Hyaluronic acid + X intelligent formula"；In 2021, hyaluronic acid products relied on "enzymatic method" to create800Da micro-true HA4，Micro-true HA4 is a tetrasaccharide unit of hyaluronic acid, only 2 nanometers in length, which can penetrate the epidermis and reach the dermis. With the application and promotion of 800Da small molecular weight hyaluronic acid, the efficacy value of hyaluronic acid has been broken through, from external supplementation to endogenous generation, promotingHyaluronic acid skincare to "micro-nano era"。

Runbaiyan "Moisturizing Ampoule Essence": Focuses on scientific and technological hyaluronic acid, and new technology leads product iteration. The moisturizing ampoule essence has undergone three iterations, opening the micro-nano era of skincare. The moisturizing ampoule essence is Runbaiyan's flagship product, and has undergone three iterations and upgrades. The third generation of hyaluronic acid technology first appliedLess than 800Da micro-true HAandINFIHA-HYDRA compound technology，Achieving both external supplementation and promotion of generation, dual-source supplementation of hyaluronic acid, and establishing a three-dimensional water replenishment ecosystem.

From Runbaiyan's product category layout in 2022, we can see thatAmpoule essenceIs still its core category and key development target, supported by more than 13 products. In addition,Face maskIt is also increasingly becoming an important category, and the high-frequency repurchase attribute has enhanced the growth momentum of Runbaiyan's achievements. Runbaiyan's approach is tocreate blockbuster productsto attract greater instantaneous traffic, helping to enhance the Brand's own reputation, while alsomaintaining product innovation. Runbaiyan has also gradually advanced from facial skin care to full-body care, expanding into categories such as neck care, body care, and hand care.

Kuadi focuses on 5D hyaluronic acid (Hymagic™-5D), which consists of five types of hyaluronic acid, with common names respectively as:Basic hyaluronic acid, Hyacross®, AcHA, MiniHA®, Ximinxiu™. Hyaluronic acids with different characteristics can accurately target the surface, stratum corneum, epidermis, dermis, etc. of the skin, playing a three-dimensional moisturizing effect, moisturizing the outer layer and locking in water in the inner layer, comprehensively caring for the skin. In addition, the ultra-micro hyaluronic acid in 5D hyaluronic acid can significantly increase the mRNA expression level of skin aquaporin (controlling the operation of cell water channels), reducing water loss.

Kuadi's representative single product, "5D Hyaluronic Acid Rejuvenating Blue Ampoule", first adopted the company's new 5D hyaluronic acid technology in 2019, innovatively compounding five hyaluronic acids with different molecular weights. The combination of large and small molecular weight units forms different water-locking barriers and moisturizing channels, allowing hyaluronic acid to break through the simple moisturizing effect and achieve multiple effects such as deep hydration, strong absorption, and anti-aging. "5D Hyaluronic Acid Rejuvenating Blue Ampoule" uses the compounding of multiple hyaluronic acids and super-active hyaluronic acid to replace the common glycerin ingredients on the market at that time,achieving product ingredient innovation,opening up new market space.

From Kuadi's product category layout, we can clearly see that facial essence is indeed its core and key category. In a single platform, Kuadi's facial essence revenue exceeded 900 million yuan,contributing 73% of the share. Kuadi matches market demand to develop products. In zonal anti-aging, rhythmic skin care, and cell-level anti-aging, it has developed new products such as masks, face creams, eye creams, and sprays. Among them, the core light-ageing cream series represented by CT50 face cream and CT50 eye cream, which focuses on endogenous anti-aging and stimulating skin energy, has gradually established a reputation in the market.

Marketing Layout

Accurately grasp the traffic dividend and achieve value conversion

Runbaiyan's marketing in recent years can be said to be,a complete blueprint composed of points, lines, and planes. At the beginning of the Brand, with the help of top bloggers, it achieved a double harvest of voice and sales. The ultimate goal of marketing is to influence the user's mentality, enhance Brand goodwill, and thus lead to purchasing behavior. This series of operations has a "sensitive" impact on users, and the marketing process is a collection of a series of "rational" behaviors.

The marketing strategy is based onevent marketinganddeeply binding top talentsas the core strategy. For example, in cooperation with Tmall Xiaohēihé, a new product launch conference was held at the Beijing Times Art Museum, inviting beauty KOLs, medical experts, artists, etc. to speak on the platform. The "Huaxi Bio Online Hyaluronic Acid Museum Exploration Trip" marketing event was created. Weiya was invited to become the global recommendation officer for the series of products, and it landed on Weiya's live broadcast room to explode sales. In addition, in cooperation with manyDouyin、Xiaohongshutwo major platformsbeauty and personal care top talentsgrass planting, to attract traffic for the series of products.

Today, in terms of Brand actions, Runbaiyan has furtheremotional marketingmastered. Runbaiyan continuously supports the rising power of Chinese women in terms of emotion and attitude,June 2022Runbaiyan's "Love Flower Shop" opened for a limited time in Hangzhou, kicking off Runbaiyan's"Give a Little Red Flower to Love"Brand event. Runbaiyan's marketing activities this time are close to the value proposition of consumers, trulyexpressing the attitude of female consumer groupsand achieving emotional resonance with consumersemotional resonance。

Runbaiyan revolves around"Focus on Love"Brand spirit, through a series of creative online and offline gameplay, comprehensively demonstratesthe Brand's value proposition. This marketing activity shows Runbaiyan's responsibility and responsibility as a domestic Brand, greatly improving the Brand's credibility and goodwill. A series of online publicity and offline check-inhigh-interaction marketing methodsachieved online attracting offline, offline feeding back online, participants spontaneously transmitting their love attitude on social platforms, allowing the entire marketing event to receive a lot of exposure, furtherexpanding Runbaiyan's Brand influence。

In addition, in 2022, Runbaiyan launched wave after wave of emotional marketing offensives around the Brand's genes. In September, it cooperated with singerTan Weiweias the guardian ambassador of the white gauze series, and jointly launched with Tan Weiwei and New Era to launchUse focus to interpret the beauty of "resilience"emotional short film; joint focus on love public welfare,cross-border cooperation with蜷川实花Beijing exhibitionUsing art to tell the brand story. Runbaiyan continues to cultivate a positive brand reputation and increase brand awareness. Runbaiyan also collaborates with the Douyin platform, conducting integrated marketing and communication on Douyin's e-commerce super brand. Marketing activities include releasing a themed emotional short film around #resilience#, leveraging celebrity live streams, and launching brand fan attitude posters.

As a mid-to-high-end brand, Kuadi's brand marketing uses high-frequency and intensive marketing activities to reach mature female users, while simultaneously expanding and cultivating the potential young market. It aims to capture strong-minded users in the younger demographic, influencing target consumers' minds through brand communication activities and accelerating their transformation into brand loyalists.

Kuadi initially focused on key opinion leader (KOL) live streams in its early marketing efforts, but now gradually reduces the proportion of top KOLs, optimizes KOL collaborations, and strengthens its own brand live streams and content marketing.The "Kuadi" brand has a deep collaboration with top streamer Li JiaqiThrough Li Jiaqi's recommendations and promotions, it reaches the vast fan base behind the key opinion leader (KOL), rapidly accumulating followers and enhancing brand image.

Since entering Li Jiaqi's live stream in March 2020, products such as Xiaolanpao and Xiaolupao have quickly become popular and high-repeat purchase bestsellers. Combining live streaming with different channels such as Tmall and WeChat Mini Programs, revenue exploded in 2020, making it one of the fastest-growing brands in the cosmetics industry that year.

In the early stages on Douyin, the brand primarily used its own live streams. Later, KOL live streams and brand live streams each accounted for half of the activity.At the same time, Kuadi created its brand IP, Zhi Fanfan,successfully cultivating a KOL with strong sales capabilities. In 2021, this account achieved a GMV of 100 million yuan. During the 618 shopping festival in 2022, brand owner Zhi Fanfan's live stream across Douyin and WeChat platforms exceeded 100 million yuan in GMV, with over 3 million+ views.

User Communication

Multi-channel connection, refined operation

Runbaiyan reaches potential users through internet channels such as Xiaohongshu, Weibo, and WeChat, using clearproduct ingredients and formulas，Information transparencyto convey consumer value information. It is Runbaiyan's education on hyaluronic acid that has brought about unprecedented progress in user understanding of sodium hyaluronate. From Runbaiyan's brand awareness distribution, we can seeproduct efficacy and ingredientsare the core labels of Runbaiyan,scenariosgrowth further illustrates the expansion of Runbaiyan's value and efficacy.

Runbaiyan has already seen initial success in private traffic, throughrefined private domain user operationupgrading its technological advantages to superior service and experience. Incommunity operationthe core is collecting users' skin types, skin problems, and skin needs, providing data support for customized skin management. Simultaneously, skincare experts and customer service personnel are matched within the community, establishingin-depth communicationchannels for userstailor-madeskincare solutions suitable for themselves.

Kuadi's focus over the past two years has been on the Douyin platformBased on this, different stores have different positioning. From store positioning, product operation, and member system, it has unearthed new growth in the "mall" scenario. Leveraging content information flow and interest recommendation technology, it locks in target users. The official flagship store mainly promotes high-priced star products, targeting mature skin; the skincare flagship store mainly promotes bestsellers, targeting younger skin.

Using different product combinations and pricing, it acquires target users of different ages, consumption levels, and needs, guiding "users" to find the right channels, increasing the likelihood of transactions, and facilitatingrefined operation of the brand's user base. From our monitoring of brand profiles, we find that Kuadi has accurately found its user group through this model, with over 40% of users aged 24-30 and over 90% female.

In addition to focusing on online live streaming channels, offline channels are also a key area for Kuadi,Kuadi directs brand power and traffic offline, using standardized services to improve service efficiency and high-ticket conversion. Kuadi's offline model refers to the well-known Japanese skincare brand Pola. One of the goals is to convey the concepts of Huaxi Bio and Kuadi to consumers through professional offline services. According to official website information, Kuadi has established more than 20 offline counters and more than 200 offline professional scientific skincare centers, offering services ranging from professional salon beauty care to high-end medical beauty care projects.

Huaxi Bio Technology as the base

Empowering and driving the steady development of skincare

Looking at Huaxi Bio's development logic, a clear pattern emerges.Technology as the foundation, cultivating the core competitiveness of the enterprise. Currently, Huaxi Bio has become a platform-type technology company, with science and technology as its foundation, possessing six major R&D platforms, more than 30 R&D studios, and multiple innovation centers collaborating with external research institutions.

The parent company achieves results through endogenous development and through industrial and market transformation platforms. Surroundingfunctional sugars, proteins, peptides, amino acids, nucleotides, and natural active compoundsLayout of six major bioactive substances. Preparation of bioactive substances is achieved through an independent R&D platform and external cooperative platforms. Utilizing synthetic biology technology, we are gradually achieving industrial transformation of bioactive substances such as gamma-aminobutyric acid, 5-aminolevulinic acid, ectoine, ergothioneine, human milk oligosaccharide, chondroitin sulfate, heparin, and collagen.Establish a full-industry-chain business system for bioactive materials.。

Huaxi Bio's Brand in the efficacy skincare trackDifferentiated layout advantages are highlighted.The product series expansion driven by the large single-product strategy has also shown results, relying onTechnological strengthSupports continuous product innovation capabilities, and brand building has been quite effective. With the improvement of refined operation capabilities, and optimization of channel structure and investment efficiency, it is believed that its skincare module will continue to maintain a stable growth trend.
 

In addition to the above analysis, the user said that the launchedthe "2023 RUNBAIYAN VS KUADI Brand In-depth Insight Report"Covers more about RVB and KUADIProduct strategy decomposition, marketing activities, user portraits, consumer demandIn-depth insights into various dimensions. Purchase the complete report to unlock more exciting content.