Core Insights - Yunnan Baiyao has officially launched the "Nanzhao Huaying" series of red lipsticks under its Caizhi Ji brand, indicating its expansion into the beauty market [2] - The company has previously introduced various beauty products since 2011, but its skincare business has not significantly contributed to revenue as per the 2025 mid-year performance report [3] Company Overview - Yunnan Baiyao is primarily focused on four core business segments: pharmaceuticals, health products, traditional Chinese medicine resources, and Yunnan provincial pharmaceutical companies [3] - The Caizhi Ji brand has previously launched products such as masks, essence water, and medical auxiliary materials, but its impact on overall revenue remains limited [3] Market Challenges - The beauty market is highly competitive, with numerous brands and established players that rely on scientific research and technological strength [3] - Despite Yunnan Baiyao's brand recognition and expertise in pharmaceuticals, converting these advantages into sales in the beauty sector remains uncertain [3] - The company faces significant challenges in capturing market share and expanding its beauty business due to the distinct differences in product development, channel strategies, and marketing logic between pharmaceuticals and beauty products [3]

Core Viewpoint - The article discusses the rapid growth of the pharmaceutical company Baiyunshan in the beauty industry, highlighting its significant online sales increase and the challenges associated with its private label strategy [5][30]. Group 1: Sales Performance - Baiyunshan's online sales in the beauty sector surged, achieving a total transaction volume of 21.29 billion yuan in 2024, a year-on-year increase of 393.95% [5][7]. - In the first two months of 2025, Baiyunshan's sales reached 4.16 billion yuan, marking a 66.61% increase compared to the same period in 2024 [8][12]. - The brand ranked 20th among online beauty brands in early 2025, outperforming many established domestic and international brands [5][9]. Group 2: Product Popularity - Baiyunshan's top-selling products include eye essence oil, azelaic acid cleansing mud sticks, and anti-dandruff shampoo, with the eye essence oil alone generating over 100 million yuan in sales on Douyin [12][21]. - The products are marketed at competitive prices, typically around 50 yuan, appealing to consumers seeking value [12][21]. Group 3: Marketing Strategy - Baiyunshan leverages its pharmaceutical background to build consumer trust, emphasizing its status as a "World Top 500" company and "Chinese Time-honored Brand" [17][19]. - The marketing strategy combines effective online presence with a focus on product efficacy, addressing consumer concerns about performance and affordability [19][21]. Group 4: Industry Challenges - The article notes that while Baiyunshan's rapid growth is notable, the reliance on private label production raises concerns about product quality and consumer trust [23][30]. - Other pharmaceutical companies like Renhe and Tongrentang have experienced significant declines in beauty product sales, indicating potential pitfalls in the private label strategy [28][29].