Will the earliest and longest Double 11 be the rebound point of Chinese consumer market? Honestly, we can't answer that question definitively.
However, after the first day of pre-sales during this year’s Double 11, one Chinese skincare brand stood out. It ranked number one in sales volume among all beauty brands in Austin Li's live stream—the top live streamer in China, known for breaking sales records for nearly every major beauty brand. Comfy, owned by Giant Biogene Group (02367.HK), may not yet be as widely recognized as other Chinese beauty giants, but when you dive into the company’s financials and growth journey, you’ll wonder how you missed it before.
👈Comfy ranked number 1 in Austin Li's live streaming during this year's Double 11 pre-sales
👉In last year’s Double 11, Comfy ranked 12th in total sales on Tmall, with an impressive 74% year-on-year growth — the highest among the top 20 skincare brands.
Comfy’s meteoric rise, particularly in the medical-grade skincare sector, offers valuable insights for Western brands looking to enter the Chinese market. This article will explore Comfy’s background, its key success factors,potential challenges, and its future prospects, providing lessons for international brands aiming to replicate its success.
01
Comfy - From Medical Beauty to Consumer Beauty
Comfy was founded in 2011 under Giant Biogene, a biotech company established in 2001 and listed in Hong Kong in 2022. Giant Biogene is a pioneer in the development and commercialization of recombinant collagen-based products, with a focus on applying advanced biotechnology to skincare and medical products. With a gross profit margin exceeding 80% and a net profit margin close to 40%, Giant Biogene has quickly become a key player in China’s booming biotech industry.
In 2023, Comfy contributed to nearly 80% of the company’s revenue, recording an impressive RMB 2.79 billion in sales — a 72.9% year-on-year growth. In the first half of 2024, the brand's revenue reached RMB 2.07 billion, representing a 68.6% growth compared to the same period the previous year.
👆🏻 Giant Biogene Group's total revenue for the first half of 2024 was RMB 2.54 billion, with Comfy contributing more than 80%.
Comfy’s hero products include medical-grade collagen face masks and its popular "Human-like" recombinant collagen repair serum sticks (胶原棒). These products have dominated top sales spots on platforms like Tmall and JD.com during major sales events, making Comfy a leader in medical beauty categories.
👆🏻 Comfy's impressive performance on Tmall and JD over the past two years.
One of Comfy’s core differentiators is that its face masks are classified as Class II medical devices (二类医疗器械) in China, a certification that requires a much longer and more rigorous approval process compared to cosmetic-grade (妆字号) products.
The higher regulatory standards for medical devices mean that the barrier to entry is significantly higher, enhancing the credibility and clinical efficacy of Comfy’s offerings.
This background helped establish Comfy as a leader in the medical beauty field. Its iconic collagen face mask has been known as the repair mask after medical beauty treatments or surgery.
However, the brand is now expanding its portfolio by developing more cosmetic-grade products, signaling a shift in its positioning from a medical-grade skincare brand to a broader, mass-market beauty brand.
This transition reflects Comfy’s ambition to tap into the wider beauty consumer base, while maintaining its reputation for professional-grade quality.
02
Reasons Behind Comfy’s Success
Several key factors have contributed to Comfy’s rapid growth:
● Scientific Background and Patented Technology: Giant Biogene boasts the world’s most comprehensive collagen library, with Comfy’s products built on its proprietary recombinant collagen technology. This innovation has positioned the brand as a pioneer in skin repair solutions.
● Booming Medical Beauty Market in China: With the rise of China’s medical beauty industry, consumers are increasingly seeking specialized, repair-focused skincare products. Comfy has successfully met this demand with its professional-grade offerings.
👆🏻China Medical Aesthetics Market Expected to Grow at a Rapid Rate of ~10% by 2024
● Effective Market Positioning and Marketing Strategy: Comfy has leveraged its collagen technology to establish itself as a leader in the “cosmeceutical” segment. Through strategic use of e-commerce and social media, particularly on platforms like Douyin (TikTok China) and livestreaming sessions with key influencers, the brand has experienced rapid growth.
● Multi-channel Expansion: Comfy’s omnichannel strategy has enabled it to gain traction both online and offline. The brand is present in thousands of hospitals and clinics, while also achieving strong growth in online sales. Its stellar performance in livestreams, particularly in the Double 11 presale event hosted by top influencer Li Jiaqi, is a testament to its growing digital presence.
👆🏻Comfy now partners with 1,500+ public hospitals, 2,500+ private hospitals and clinics, and 650+ drugstores. Its products are sold in over 6,000 offline beauty stores and supermarkets.
👆🏻According to Giant Biogene’s financial reports, direct-to-consumer online sales have surged since 2022, now accounting for over 60% of total revenue, while distributors contribute more than 30%.
03
Challenges and Risks
Despite its success, Comfy faces several challenges that could impact its long-term growth:
● Chaotic Channels and Pricing: In its early days, Comfy heavily relied on direct sales (微商) channels, which led to inconsistent pricing and potential difficulties in controlling its distribution network.
● Low R&D Investment: Despite its technological background, Giant Biogene’s R&D expenditure accounts for only around 2% of its revenue. This could limit its ability to innovate and stay ahead in a competitive market.
👆🏻 In 2023, Giant Biogene’s sales and marketing costs accounted for 49% of revenue, while R&D costs accounted for only 2%.
● Weak Brand Power: While Comfy is a top performer in its niche, it lacks the brand recognition as a leading beauty brand compared to established domestic competitors like Proya. Enhancing its brand equity will be crucial for sustained growth.
● Overreliance on Collagen: Comfy’s focus on collagen-based products could limit its potential. As market trends shift, the brand may encounter growth bottlenecks if it fails to diversify its product offerings.
04
Future Outlook
Comfy is poised to benefit from several emerging trends, but also faces increasing competition:
● New Entrants of Recombinant Collagen Industry: As the recombinant collagen market expands, major players like Bloomage BioTechnology (华熙生物) — known for their hyaluronic acid products — are entering the space, intensifying competition. Comfy will need to innovate continuously to stay ahead.
👆 List of competitors tapping into the recombinant collagen industry in 2024.
● Expanding into Consumer Goods: Comfy plans to increase its presence in the consumer skincare sector, particularly with cosmetic-grade products. Its collagen repair serum sticks are the first success in this category. Transitioning from a medical-grade brand to a broader consumer-facing brand will require enhanced branding and operational capabilities.
👆🏻Comfy’s Tmall store - only one of top selling items is classified as medical-grade product
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Key Takeaways for Western Brands:
●Scientific Credibility is Key: Chinese consumers increasingly value products backed by science and proven efficacy. Western brands can benefit by emphasizing their R&D capabilities and clinical studies.
● Functional Skincare is On Trend: Over the next five years, demand for functional skincare products will remain high. Western brands should capitalize on this trend.
● Navigating Multi-channel Strategies: Success in China’s beauty market requires a well-rounded approach, balancing offline medical partnerships with strong digital marketing campaigns.
● Innovation and Diversification: While single-ingredient hero products can boost short-term growth, long-term success requires product innovation and diversification to remain competitive.
Double V Consulting is a marketing consultancy specialized in female consumer goods brands. We have been helping overseas brands navigate the complexities of the Chinese market since 2017. We specialize in creating strategies that resonate with Chinese female consumers, leveraging deep market insights and cultural understanding.
If you're interested in learning more about how we can assist your brand in understanding and connecting with Chinese consumers, don't hesitate to reach out by click the "Read more" link below.
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